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Karur Vysya Home Loan Interest Rates 2020

Karur Vysya Bank Housing Loan Interest Rate

Last Updated 07th Aug 2020

Current Karur Vysya Bank Home loan interest rates for Sep 2020 starts at 8.20% p.a. for a maximum tenure of 25 years. Processing fee on its housing loans is Minimum ₹ 5,000 and .

Loan AmountKarur Vysya Bank Repo Rate Home Loan Rate
Upto ₹ 25 Lakh8.20%
₹ 25 Lakh - ₹ 1 Cr8.20%
₹ 1 Cr - ₹ 3 Cr8.20%
Above ₹ 3 Cr8.20%

Karur Vysya Bank Home Loan Interest Rates

Karur Vysya Bank offers various products on home loan. Karur Vysya Bank home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • Karur Vysya Bank Home Loan Interest Rate starts from 8.20%.
  • Karur Vysya Bank charges a processing fees of Minimum ₹ 5,000 and .
  • Loan Tenure of Home Loan ranges from 5 years to 25 years.
  • Lowest EMI per lakh on home Loan from Karur Vysya Bank is ₹ 785 per lakh offered at the lowest interest rate of 8.20% at the longest loan tenure of 25 years.
  • Karur Vysya Bank allows prepayment of home loans with Nil charges on floating rate loans.
  • Karur Vysya Bank has an average customer rating of 3/5.0 from customers who have taken a home loan from the bank.

Karur Vysya Bank Home Loan Rate

Current Karur Vysya Bank home loan interest rates are in the range of 8.20% to 10.05%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 8.20%. The table below gives the interest rates on various housing finance schemes of Karur Vysya Bank.

Karur Vysya Bank Home Loan Scheme Interest Rates
Karur Vysya Bank Repo Rate Home Loan8.20% - 10.05%

Karur Vysya Bank Bank Home Loan Charges

Karur Vysya Bank Home Loan Processing Fee

The bank charges a minimum processing of ₹ 5,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to Karur Vysya Bank housing loan 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.

Karur Vysya Bank Home Loan Prepayment

Karur Vysya Bank charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to Karur Vysya Bank for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from Karur Vysya Bank, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with Karur Vysya Bank.

Karur Vysya Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Karur Vysya Bank Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at Karur Vysya Bank if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on Karur Vysya Bank Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)8.2% to 10.05%
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 Lakh
  • Time period: 5 years to 25 years
  • Karur Vysya Bank Home Loan Interest Rate: 8.20% to 10.05%
  • Processing Fee payable to Karur Vysya Bank: Upto ₹ 10,000. Current offer for processing fee is Minimum ₹ 5,000
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 785 for a 25 years ₹ 1 Lakh loan at 8.20% (lowest rate, longest time period) to ₹ 2,127 for a 5 years ₹ 1 Lakh loan at 10.05% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 37,630 for 5 years loan to ₹ 1.46 Lakh for 25 years loan

Karur Vysya Bank’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of Karur Vysya Bank.

FAQs

What is Karur Vysya Home Loan interest rate?

Karur Vysya Home Loan interest rate ranges between 8.20% to 10.05%.

Why should I opt for balance transfer to Karur Vysya Bank?

Karur Vysya Bank offers competitive Home Loan rates with the best EMI of ₹ 785 per lakh availed at a low-interest rate of 8.20% for a maximum tenure of 25 years. If you are paying an EMI more than ₹ 785 per lakh, you should consider the option for a loan transfer to Karur Vysya Bank from your existing bank. EMIs can be calculated through Karur Vysya Bank Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from Karur Vysya Bank?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on Karur Vysya Bank housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on Karur Vysya Bank housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

How will Karur Vysya Bank housing loan rate of interest change in the future?

  • Karur Vysya Bank offers RBI Repo Rate linked Home Loan which starts at 8.20%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called Karur Vysya 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 4.2% 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 Karur Vysya Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then Karur Vysya Bank Repo Rate linked Home Loan rate will cut from 8.20% to 8.05%.

What is the current Karur Vysya Bank Home Loan rate?

The current Karur Vysya Home Loan rate starts from 8.20% with a processing fee of Minimum ₹ 5,000 and

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Karur Vysya Bank Home Loan News - Sep 2020
  • 2020-07-30 : Karur Vysya Bank reported a net profit of Rs. 105.50 crore
    Karur Vysya Bank reported a 45% increase in net profit at Rs 105.50 crore in the first quarter ended June. The company has reported total income bolstered by retails loans like home, personal, gold, car and two-wheeler loans along with the Business and mudra loans of Rs.1693.23 crores during the period ended June 30, 2020, as compared to Rs.1803.15 crores during the period ended March 31, 2020.
  • 2020-01-07 : Karur Vysya Bank revised MCLR
    The overnight, one-month, three-months MCLR of Karur Vysya Bank is kept unchanged and stands at 8.30%, 8.40%, 8.55%, respectively. While six-months and 1 year MCLR is cut by 10 bps to 9% and 9.30%. The revised rates are in effect from 7 January 2020. The cut in MCLR will impact home loans and loans against property.
  • 2019-05-09 : Karur Vysya Bank keen to adopt digital innovation for ensuring customer satisfaction
    Karur Vysya Bank concentrates on accepting digital innovation for ensuring maximum customer satisfaction. Following this, the lender has implemented booking of all retail loans including housing loans and car loans under digital technologies wherein the loan borrowers can book a loan on their own in less than a minute. So far, the bank has launched nearly 24 products under retail loans category and five products under commercial category purely online including documentation.
  • 2018-10-31 : Karur Vysya Bank clocks 11% rise in Q2 net profit
    Karur Vysya Bank has clocked 11% in its standalone net profit at Rs 84 crore for the quarter ended September against Rs 76 crore in the previous year. Net interest income stood at Rs 579 compared to Rs 555 crore in the same period last fiscal with a slow loan growth of 7% year on year. Provisions and contingencies fell sharply at Rs 213 crore.
  • 2018-09-05 : KVB launches KVB Next
    Karur Vysya Bank (KVB) has developed its digital backbone, KVB Next for a home loan, personal loan, loan against property and working capital loans. KVB Next helps in the loan to be sanctioned in 15 minutes and an eligible customer can get the disbursal loan amount within 2-3 days and sometimes on the same day as well. It moves the Karur Vysya bank’s process from paper to digital world.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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