To check Karnataka Bank Home Loan eligibility, click on Home Loan Eligibility Calculator. Instantly you can know about eligible KBHL amount and EMI for your profile. Currently the lowest Karnataka bank home loan interest rate starts from 7.50 % p.a. for maximum of 30 years. Other eligibility criteria for applying for Karnataka Bank Home Loan are: Indian residency and age between 18 to 70 years during the loan tenure.
Karnataka Bank is one of India's largest privately owned banks in India. It is a commercial scheduled bank, which was established in 1924. Since then, Karnataka Bank Limited has grown to establish over a network of 843 branches across the major states of India, providing all kinds of financial products and services to its customers.
Most of us desire a house of our own. Having a self-owned house is considered as a mark of stability. However, in the current market circumstances, it becomes difficult to purchase a house in one instalment. This is when home loan comes into place. Karnataka Bank Home loans allow an individual to go for a dream house with convenient payment plans.
Verifying whether you fit into the eligibility criteria for home loan provided by the bank is the first step towards your home loan application. Most banks have certain eligibilities like age, income, type of job etc. that they allow for individuals applying for home loans. Eligibility criteria are to ensure that the bank can trust the applicant's repayment capability.
Following are the Karnataka Bank home loan eligibility criteria:
Karnataka bank offers many home loan products for various sections of the society. It issues customised home loans for different customers based on their purpose and needs. The bank requires certain criteria to be meet before they can approve your loan. The bank offers great interest rates with high tenure option so that applicants can avail a low EMI to pay off the loan comfortably. Below are listed some salient features of Karnataka Bank Home Loan.
|Purpose||Karnataka Bank offers Housing loans for buying a house, construction of a new house, renovation of property etc.|
|Loan amount||The max loan amount offered by Karnataka bank is 5 Cr.|
|Tenure||The tenure can be as high as 30 years if home loan purpose is construction or purchase of property and is 7 years if the purpose is to repair/renovation.|
|Minimum age criteria||Applicant of 18 years of age or above is eligibile for Karnataka Bank home loan|
|Maximum age criteria||The maximum age is until retirement for salaried employees.|
|Income eligibility||A minimum income of 10000 a month is required for salaried applicants and a yearly income of minimum 1.2 lakh for self-employed individuals.|
|Interest Rate||The Interest rate differs as per the purpose of loan. It starts from 8.90%.|
|Processing fee||Up to 0.50% of loan amount|
|Pre-payment charges||Nil in case of floating home loans|
The bank asks for documents related to your eligibility and income and you will have to make sure to provide them along with your application form. The documents are asked so that the bank can verify your claim and background.
Below are the documents which the bank will commonly ask for:
Home loans are provided to encourage individuals to purchase a house of their own. However, loans are only provided after making sure that the applicant is well capable of repaying the loan. This is why, home loan approval can take quite a while and requires a thorough understanding of the applicant's finances, credit history etc. There are some more factors that can impact home loan eligibility as well.
Please find some of them listed below:
Your income source greatly impacts your loan eligibility. Naturally, a higher income will always be preferred. Additionally, some banks do prefer employees with stable jobs and having a higher experience. Government employees are highly preferred as well that doesn't mean that self-employed professionals cannot avail it. Self-employed individuals might, however, be charged a higher interest rate and will have to provide 3 years of business income proof and stability
When you apply for a home loan, the bank will checkyour financial history. This means that they will verify all your prior finances and look for any red flags. Your financial history will showcase how promptly you paid your bills, payments and how did you treat your previous creditors. If you have any missed payments or penalties, they might work negatively for your application.
Even if you do satisfy the eligibility criteria, your age combined with your income and tenure you intend to apply for will affect your eligibility. If you want to apply for tenure of 30 years and you're already in your 50's, your chances of getting the loan availed might be hampered or you might have to go for a lower tenure/higher interest. Banks will favour younger applicants for a high duration home loan, although they will also have to satisfy the criteria of minimum 2-3 years of work experience.
If any of your immediate family members are earning, you can apply for a home loan jointly with them. A joint application has higher chances of getting approved. This is because when you apply jointly, income of both applicants are added together as the total income for the EMI consideration. Also, the repayment responsibility rests on both your shoulders, so it reduces the burden on the applicant. Joint application also means that both applicants can avail tax benefits on the home loan.
As the bank verifies your financial history, if they find too many credits by you in place, it will raise a red flag. Too many credits include too many credit cards, loans, other debtors etc. This might make the bank feel like you seek more credit than you are able to handle. If you are applying for too many credits or have already taken multiple loans and credit card, bank or financial institution may take you as credit hungry
Availing a home loan can become a complicate process, but, only if you haven't done proper assessment on your finances and history and a thorough assessment of the bank's eligibility for a home loan process. It is most beneficial if you can approach a third-party vendor or a professional before applying for your home loan. They will be able to guide you through the application process completely and also help you choose the best package for your needs. Below are some tips that can help you increase your home loan eligibility.
A credit report is an overview of your credit history. It will hold all your prior credit details and behaviour. A credit report will be used by the bank to determine if you are a creditworthy applicant. It is important that you get a credit report generated so you can verify that the data is accurate as per your finances and there are no errors and discrepancies. You can get a credit report generated by any finance professional or through third-party vendors like MyMoneyMantra. Your credit report will also contain your credit score. A credit score of 650 or more is considered good.
Your EMI instalment depends on your loan amount, rate of interest and tenure. A higher tenure can mean a lower EMI amount (as the total amount is divided by the tenure). A lower EMI amount means a lesser burden on your monthly income and this gives the bank a bit more confidence in your repayment capability. A higher tenure also means a longer time to repay your home loan.
Your primary salary/business need not be your only source of declared income. Any activity that brings in financial income can be declared for the home loan. This includes annual bonuses, special allowances, income from rental properties, interest earned from investment in FDs or any other sources. The more income you can provide, the more confidence your bank can gain in your home loan application.
As mentioned above, the bank does favour young and experienced applicants for a high tenure home loan. However, young applicants are not always able to have enough income to pay for the home loan. A step-up loan offers its applicants the option of a lower EMI amount for the initial few years and then gradually increases or as per the increment in the applicants' salary. This allows the applicant to not worry about high EMI's at the very beginning of his career and also gives the bank more confidence as to loan repayment.
Additional Reading: How to Improve Cibil Score Fast?
EMI (Equated Monthly Instalment) is a payment that the applicant has to offer the bank as repayment against the home loan provided. This amount is calculated based on your home loan amount, Karnataka Bank home loan interest rate and tenure. Your EMI amount is very important as it is the EMI amount that has to fall within your income criteria and that is the amount you will be paying on a long term basis until your tenure ends. The EMI includes both the principal amount and the interest to be paid.
EMI amount is calculated as shown below:
E = EMI amount
P = Principal loan amount
R = rate of interest
N = Tenure in months
From the calculation shown above, you can see that the EMI calculation is a tedious process. It won't be easy for alayman to calculate EMI on his own. That is why, most companies, banks and third-party vendors offer a tool called EMI calculator. The EMI calculator is devised to give you accurate and quick EMI calculated amount for your tenure and rate of interest. The EMI calculator can be a very helpful tool for your home loan guidance.
Below are listed some benefits of the EMI calculator:
Benefits of the EMI calculator:
Additional Info: Check Cibil Score by pan Card
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You don't need anything in particular to use an EMI calculator. Most banks offer EMI calculators on their online websites. You just need to access them through your phone or computer.MyMoneyMantra's EMI calculator is also available free of cost on the MyMoneyMantra website.
A pre-approved loan is a home loan that is approved even before the property/land to purchase has been finalised. In this case, the bank approves the home loan amount based on the income, eligibility and desired tenure of the applicant and the applicant is then free to look for a property close to the loan amount offered.
A floating rate home loan is a home loan where the rate of Interest changes throughout the tenure as or the change in the market rate. A fixed-rate home loan is one where the rate of Interest will remain unchanged. Usually, even if the applicant chooses a fixed rate home loan, the loan is changed to floating rate after a few years.
For a home loan application, not more than 6 people can be allowed as co-applicants. However, co-applicants can only be the spouses, siblings or parents.
The bank usually does not provide the entire property amount as a home loan. The amount of home loan will depend on your income as well. Karnataka bank offers up to 60 times your gross monthly salary as a loan amount. The max amount offered by Karnataka bank is 5 crore.
There are 2 common ways you can pay your EMI instalments. One of them is through ECS(Electronic Clearing System). By setting up an ECS account with the bank, the home loan instalment will be automatically deducted from your account. This is beneficial if you have a floating rate home loan where the EMI amount can change. Another way is through providing the bank with PDC(Post-dated cheques).
It can be difficult to avail a home loan if you don't have a good credit score. A credit score is a very vital measure for the bank to determine the applicant's credibility. Karnataka bank requires the applicant to have a credit score of 650 or more. One way for you is to add a co-applicant who has a good income and a great score. This will definitely help increase your home loan eligibility.