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Karnataka Bank Home Loan Interest Rates 2021

Karnataka Bank Housing Loan Interest Rate -Today

Last Updated 05th Jul 2021

Current Karnataka Bank Home Loan interest rates Jul 2021 starts at 8.55% p.a. for a maximum tenure of 30 years. The processing fee on its housing loans is Upto 0.25%, Minimum ₹ 250 .

Loan AmountKarnataka Bank Repo Rate Home Loan Rate
Upto ₹ 25 Lakh8.55%
₹ 25 Lakh - ₹ 75 Lakh8.55%
₹ 75 Lakh - ₹ 3 Cr8.65%
Above ₹ 3 Cr8.65%
Apply for Home Loan @ 6.65%* Get upto ₹ 1,000* Cashback

Current Karnataka Bank Home Loan Rate

Today Karnataka Bank home loan interest rates are in the range of 8.55% to 9.50%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 8.55%.

Below-mentioned are Karnataka Bank home loan rates for multiple housing schemes.

Karnataka Bank Home Loan Scheme Interest Rates
Karnataka Bank Repo Rate Home Loan8.55% - 9.50%
KBL Home Comfort9.58% - 9.88%
KBL Ghar Niveshan11.25% - 12.10%

Karnataka Bank Home Loan Interest Rates for Salaried and Self Employed

The home loan interest rates in Karnataka Bank for salaried & non-salaried employee is mentioned in the table below:

Home Loan Interest Rate for Salaried

Loan Amount Rate
Upto ₹ 25 Lakh 8.55%
₹ 25 Lakh - ₹ 75 Lakh 8.55%
₹ 75 Lakh - 3 Cr 8.65%
Above ₹ 3 Cr 8.65%

Home Loan Interest Rate for Self-Employed

Loan Amount Rate
Upto ₹ 25 Lakh 8.55%
₹ 25 Lakh - ₹ 75 Lakh 8.55%
₹ 75 Lakh - 3 Cr 8.65%
Above ₹ 3 Cr 8.65%

Karnataka Bank Home Loan Processing Fee and Other Charges

Karnataka Bank home loan processing charges are upto 0.25% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. Karnataka Bank charges a minimum processing of ₹ 250 on home loan which is typically non-refundable and has to be paid at the time of loan application. In addition to processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

Processing Fees Upto 0.25% of the loan amount; minimum processing fee of ₹ 250
Foreclosure Charges Nil for floating rate home loans

Karnataka Bank Home Loan Balance Transfer Interest Rates

Karnataka Bank home loan balance transfer facility is ideal for existing home loan customers, who are paying high interest to their existing lender. Through this facility, you can transfer your existing home loan to Karnataka Bank at a lower rate of interest, without closing the account. However, you do need to check the foreclosure charges that you have to pay to your existing lender if it is a fixed rate loan. Currently, Karnataka Bank offers the lowest home loan balance transfer rate of 8.55%.

Illustration on Home Loan Interest Rate Karnataka Bank
Maximum Annual Percentage Rate (APR) 8.56% to 9.51%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1,00,000
  • Time period: 5 Years to 30 Years
  • Karnataka Bank Home Loan Interest Rate: 8.55% to 9.50%
  • Processing Fee payable to: Upto ₹ 250
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 772 for 30 Years ₹ 1,00,000 loan at 8.55% (lowest rate, longest time period) to ₹ 2,100 for 5 Years ₹ 1,00,000 loan at 9.50% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Annual Percentage Rate (APR) of charge including all applicable fees: 8.56% to 9.51%
  • Total cost payable over loan tenure: ₹ 1,23,494 for 5 Years loan to ₹ 2,78,336 for 30 Years loan

FAQs

What is Karnataka Bank Home Loan Interest Rate?

Karnataka Bank Home Loan interest rate ranges between 8.55% to 9.50%. The salaried borrowers with high credit score and income are eligible to get lower interest rates.

Has Karnataka Bank reduced home loan rates?

Presently, Karnataka Bank offers personal loans at an interest rate starting at 8.55%. There has been no change in personal loan rates of Karnataka Bank for a long time and continue to stand at 8.55%.

Why should I opt for balance transfer to Karnataka Bank?

Karnataka Bank offers lowest Home Loan EMI of ₹ 772 per lakh availed at the lowest interest rate 8.55% for a maximum tenure of 30 years. you are paying an EMI more than ₹ 772 per lakh, you should consider the option for a loan transfer to Karnataka Bank from your existing bank.

  • Karnataka Bank offers RBI Repo Rate linked Home Loan which starts at 8.55%. Current Repo Rate of RBI is 4.00%. The Bank adds a mark up on RBI’s repo rate which is called Karnataka Bank Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 4.55% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the Karnataka Bank Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from the 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then Karnataka Bank Repo Rate linked Home Loan rate will cut from 8.55% to 8.4%.

What is the current Karnataka Bank Home Loan rate?

The current Karnataka Bank Home Loan rate starts from 8.55% with a processing fee of Upto 0.25%, Minimum ₹ 250.Karnataka Bank housing loan rate varies across the applicant’s eligibility and the scheme they opt for. Karnataka Bank offers different home loan rates for different home loan products.

Can Karnataka Bank housing loan interest rate be negotiated?

Yes, if you have a good relationship with the bank and a high credit score, you can negotiate with Karnataka Bank to lower the home loan rates.

What are the interest rates of home improvement loans in Karnataka Bank?

You can avail of Karnataka Bank home loans for home improvement at regular home loan rates starting at 6.65%.

Can Karnataka Bank revise the home loan interest rates for their existing customers?

Karnataka Bank home loan rates change for the existing customers if they have availed home loans at a floating rate of interest. The floating interest rates on home loans vary as per the change in market trends or in external benchmark rates such as the repo rate.

Does Karnataka Bank offer a concessional home loan interest rate for women?

Yes, Karnataka Bank offers special home loan interest rates for women. As against Karnataka Bank home loan rates for male which is 8.55%, the home loan interest rate for women starts at %.

What is the Karnataka Bank home loan rate of ₹ 25 Lakh for 15 years?

Karnataka Bank home loan varies as per the loan amount. For home loan upto ₹ 25 Lakh, Karnataka Bank provides home loan interest rate starting at 6.65%.

At what interest rate does an Karnataka Bank employee get a home loan?

Karnataka Bank offers concessional home loan rates of about 1% than the current home loan rates to Karnataka Bank employees.

Is Karnataka Bank home loan a floating rate loan or fixed-rate loan?

Karnataka Bank home loan is offered at both fixed and floating rate. In the case of the fixed rate, the interest remains the same whereas in the case of the floating rate the home loan rates keep varying according to the market.


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Karnataka Bank Home Loan News - Jul 2021
  • 2021-04-27 : Karnataka Bank targetting a growth of 12% in FY22
    Karnataka Bank stated that it is targeting to grow its business at 12% to over Rs 1.42 lakh crore in the current fiscal year. The Bank is planning to gradually increase the share of the retail loan which includes home, personal, LAP, two-wheeler, car, education and doctor loan.
  • 2021-04-05 : Karnataka Bank targeting 1.42 lakh business turnover in FY 22
    Karnataka Bank is looking for 12% business growth in the current fiscal and targeting 1.42 lakh business turnover. The bank emphasised that it is planning to leverage digital banking to achieve its target.
  • 2021-01-18 : Karnataka Bank Q3 net profit rises to ₹135 cr
    Karnataka Bank posted a net profit of Rs 135 crore for the December quarter of current financial year with a growth rate of 10%. Further, net interest income rose 21% to ₹614 crore from ₹508 crore in Q3FY20.
  • 2019-08-08 : Karnataka Bank transformation initiative ‘KBL Vikaas’ is gaining momentum
    Karnataka Bank’s transformation initiative ‘KBL Vikaas’ with Boston Consulting Group (BCG) has started giving profitable results, as per the lender. Under this initiative, the turnaround time for home loans has been reduced to 7 days from 30 days earlier under this initiative and thereby resulting in growth under home loans category to 26% from earlier 16%. Also, the bank has transformed its NPA recovery process through this initiative.
  • 2019-07-15 : Karnataka Bank registers profit at Rs. 175 crore during during Q1
    Public sector lender, Karnataka Bank has registered a profit of over 7 percent growth in the net profit at Rs. 175 crores in the first quarter of FY19-20 as against Rs. 163 crores during the previous year. The profit of the lender is driven by growth in interest income, deposits, and retail loans, including home loans and mortgage loans.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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