Interested in financial products
Processing

Karnataka Bank Home Loan Interest Rate

After a period of time, people would want to move into their own houses. But that’s not something that can be achieved in days. It takes years to save up and find the right house. But not everyone might want to wait for a long time to get a house. So, they get loans from banks or financial institutions to speed up the process. When you get a loan from a bank you would be obligated to pay them back in installments along with a certain amount of interest.

Karnataka Bank provides schemes that will help them get their dream home. They lend money not only for buying a house, but also for buying plots to construct a house and also for renovation purposes. Schemes like KBL Apna Ghar, KBL Home Comfort, KBL Ghar Niveshan are provided to the customers.

Karnataka Bank Home Loan Interest Rate

Interest rates are linked to MCLR, where for one year, it is 9.40%. But for KBL Apna Ghar scheme the interest rate is linked to 6 months MCLR, which is 8.80%.

Home Loan SchemeEffective Interest Rate(%)
KBL – Apna Ghar/Elite  
Up to Rs. 75 lakhs8.90%
Above Rs. 75 lakhs9.00%
KBL – Home Comfort 
Up to 60 months10.05%
Above 60 months10.45%
KBL - Ghar Niveshan14.60%
KBL Home Top Up 12.60%

KBL Apna Ghar Loan Details

  • Eligibility Criteria:
    • Individuals who are residents of India
    • NRIs holding an Indian passport
    • Minimum age limit to avail for a loan is 18 years
    • Income of Resident Indians:
      • Salaried individuals: Minimum gross monthly salary Rs. 10,000
      • Agriculturists: Minimum annual net income Rs. 1,20,000
      • Businessmen/Professionals/Self Employed: Minimum Annual gross income Rs. 1,20,000
  • Income of NRIs:
    • Salaried Individuals: Minimum gross monthly salary Rs. 40,000
    • Businessmen/Professionals/Self Employed: Minimum Annual gross income of Rs. 4,80,000
  • Purpose:
  • Construction/Purchase of house or flat
  • Renovation/Remodeling/Repair to existing house/Flat
  • Finance information:
  • Salaried Individual: 60 times of latest monthly Net salary
  • Businessmen/Professionals/Self Employed: 5 times the average net income or profit plus depreciation provided, of the last 2 years as per P&L a/c in case of traders/Self-employed/Professional.
  • Agriculturist: 5 times the current year net income.
  • Maximum amount that can be borrowed for purchasing or construction is up to Rs. 500 lakhs.
  • Maximum amount for Renovation/Remodeling/Extension/Repair is up to Rs. 30 lakhs.
  • Repayment period for construction of homes is maximum up to 30 years
  • For renovations and repairs the repayment period will be for 7 years
  • Repayment can be done in Equated Monthly Instalments
  • Agriculturists can pay in yearly basis including yearly interests
  • Security:
    • Mortgage of house property constructed/purchased/repaired/remodeled
    • Guarantee of the spouse wherever feasible in the absence of which third party solvent guarantor
  • Loan margin for new construction: 10-25%
  • Loan margin for houses or flats that are above 10 years is 30%

KBL Home Comfort Loan Details

  • Eligibility Criteria
    • Individuals who have already availed for a loan under KBL-Apna Ghar/Elite scheme
    • Individuals who have not availed any loan from any FI for their Residential property/ closed the housing loan already availed
  • Purpose
    • Purchase of furniture
    • Interior work
    • Acquiring furniture fixtures
    • Solar heating or lighting systems
  • Finance Information
    • Up to 75% of the estimated costs of the asset to be purchased or the works to be carried out will be taken up
    • Maximum amount that will be loaned is Rs. 100 lakhs
    • Repayment period of maximum 120 months is given
  • Security
    • Hypothecation of assets acquired out of loan
    • Guarantee of the spouse wherever practicable in the absence of which third party solvent guarantor.
    • Mortgaged house or flat for which housing loan has already been obtained (for KBL-Apna Ghar/Elite Scheme loan). Mortgage of the relative house/flat property for which the facility is sought.
  • Repayment must be done in Equated Monthly Installments (EMIs)
  • The loan margin is 25%

KBL Ghar Niveshan

  • Eligibility criteria
    • Individuals who are residents of India
    • NRIs holding an Indian passport
    • Minimum age limit that is allowed to borrow a loan is 21 years
    • Income of Resident Indians:
      • Salaried individuals: Minimum gross monthly salary Rs. 10,000
      • Others: Minimum Annual Gross income Rs. 1,20,000
  • Income of NRIs:
  • Salaried individuals: Minimum gross monthly salary Rs. 40,000
  • Others: Minimum Annual gross income of Rs. 4,80,000
  • Purpose of availing loan through this scheme is for purchasing a house site
  • Loan margin is 20%
  • Repayment in general can be done in equated monthly installments (EMIs)
  • Agriculturists can pay in a yearly basis including yearly interest
  • Repayment period is up to 60 months
  • Up to 80% of the registration value of the site with a maximum of Rs. 50 lakhs can be borrowed.
  • Security
  • Mortgage of the house site that is to be acquired
  • Guarantee of the spouse wherever practicable in the absence of which third party solvent guarantor

FAQs: Karnataka Bank Home Loan Interest Rate

1. What is the effective interest rate that is charged for KBL – Apna Ghar/Elite home loan?

The effective interest rate that is charged for KBL - Apna Ghar/Elite home loan for up to Rs. 75 lakhs is 8.90% and for above Rs. 75 lakhs is 9.00%. This loan can be availed for either purchasing a house or for renovating a house.

2. Can we get a loan for house sites?

Yes, a loan can be availed for buying house sites and from thereon constructing a house. KBL Ghar Niveshan scheme allows you to avail a loan for a plot.

3. What is the loan margin for KBL Apna Ghar Loan?

Loan margin for newly constructed homes is 10-25%. And loan margins for houses or flats that are above 10 years old are 30%.

4. Can NRIs apply for KBL Ghar Niveshan loans?

Yes, NRIs who have an Indian passport are allowed to apply for KBL Ghar Niveshhan loans.

5. What is the maximum amount that can be borrowed for renovations?

Maximum amount that can be borrowed for renovations/remodeling/repairs or for extensions is Rs. 30 lakhs.

×Thank you! Your comment will be reviewed and posted shortly.

Write a review

CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.