Karnataka Bank Home Loan EMI Calculator

Karnataka Bank is a Scheduled Commercial Bank and is listed as the 12^th largest private sector bank. The headquarters of the bank is in Mangalore. At present the bank is operating through 843 branches across the country. There are 1540 ATMs of Karnataka Bank operating all over the country. All branches of Karnataka Bank are fully computerised. The Bank offers Corporate/Retail Banking products. Home Loan is one such retail product that is popular for the competitive offers provided.

The following are the different types of home loans provided by the bank.

• KBL Apna Ghar
• KBL Home Comfort
• KBL Ghar Niveshan

Different categories of home loan for construction/purchase and repairs are provided. You can now either purchase a plot and construct a house thereon or purchase a ready house/flat or simply upgrade the existing house with the home loans provided by the bank.

Additional Info: Apply SBI MaxGain Home Loan starting at low interest rates.

KBL Apna Ghar

Eligibility :

• Resident Individuals and HUF (Hindu undivided family)
• Salaried/self-employed individuals, professionals, and businessmen
• Minimum Age 18 years

Quantum: 75% to 85% of the market value of the property

Interest Rate: 8.75% - 10.43% p.a.

Repayment: Maximum repayment period 30 years

Security:

• EMT of the property acquired

Processing Charges

• For details regarding the processing charges and pre-payment charges contact the nearest branch of Karnataka Bank.

KBL-Home Comfort

Eligibility :

• Customers who have already availed a loan under KBL Apna Ghar and customers who do not have an existing loan against their residential property

Quantum: 75% of the estimated cost of the project with a maximum of 100.00 lakhs

Interest Rate: 10.96% -11.36% p.a.

Repayment: 10 years maximum repayment period

Security:

• Continuing EMI of the property mortgaged for KBL Apna Ghar or EMI of the property for which the loan is availed.

Processing Charges

• For details regarding the processing charges and pre-payment charges contact the nearest branch of Karnataka Bank.

Additional Info: Also check Rs. 80 Lakh Home Loan EMI

The lowest EMI as on date is Rs. 787/- per lakh.

The rate of interest varies between 8.75% - 10.43% p.a. for Karnataka Bank Home Loans and the table below will give details of EMI for different loan amounts for different tenure and rate of interest.

EMI for a loan at 8.75% p.a. interest:

EMIs that are fixed at the time of availing a loan do not remain constant throughout the repayment tenure. There are various factors that amount to the fluctuation in the EMI.

Change in rate of interest: If you have opted for a floating rate of interest, the EMI will change as and when there is a change in the rate of interest. If the rate of interest is higher then, the EMI will be higher. If there is a decrease in the rate of interest, then there will be a decline in the EMI level.

If you have opted for a fixed rate of interest, then the EMI will change when the rate of interest is reset over a period of time that differs from bank to bank.

If you have opted for a combination of fixed and floating rates of interest, the rate of interest will be fixed initially and then it is converted to floating after a pre-set period. When the transition happens, the EMI automatically will change.

Pre-payment of the loan amount: When you make a pre-payment for the home loan, the principal amount reduces correspondingly. You can then either opt for a reset in the EMI or opt for lowering the tenure of the loan. If you intend to balance your monthly budget, then you can go for an EMI reset, else you can opt for reducing the tenure.

Change in tenure: Sometimes you would want to go for a change in the loan tenure. Assume that you have opted for a shorter tenure initially based on your affordability at the time of availing the loan and later due to other commitments you may not be able to pay the same EMI. If you negotiate with your bank for the change in tenure, there will a change in the EMI as well.

When you opt for achange in loan tenure along with the balance transfer, then the EMI will automatically change.

Step-up EMIs: In step-up EMIs, initially the EMIs will be kept low and will increase periodically through the tenure of the loan.

Additional Info: Best Home Loan Interest Rates @8.50%

While deciding the right EMI the basic things you have to consider are your affordability and the compliance of EMI to Net Monthly Income ratio.

• You make a list of all your present commitments and assess the residual amount available to provide for the home loan EMI.
• Once you have the affordable amount, use the EMI calculator and try several variations till you arrive at the interest and the loan amount that would match your affordable amount.
• If you have any additional sources of income like the rent, dividends and deposit interest include these while arriving at the affordable amount.
• The loan amount is based on the value of the project. There will be a percentage of margin set for which you will have to provide.
• You should have an idea of how you would arrange for the margin amount before applying for the loan. If you are able to make a higher down payment you can reduce the loan amount and the EMI.
• Choose a tenure based on the loan amount and your age. If income from all the sources will enable you for a higher monthly payout, choose the shortest tenure that will match the available funds to provide for the EMI.
• If you need a higher amount and your income is not sufficient for the kind of amount, then your family members with regular income and a good credit score can be co-borrowers for the loan and their income will be considered to arrive at the loan eligibility.

In a nutshell, you try various options to choose an EMI that will not put you into a financial crisis later in your life.

Additional Info: Also Check LRD Loan

The EMI changes every time there is a change in the rate of interest which may happen several times during the loan tenure.

• If you have opted for a floating rate of interest the EMI will be higher when the rate of interest increases and will be lower when the rate of interest reduces.
• If you have opted for a fixed rate of interest, the EMI will be constant until the period the interest remains fixed. After a pre-decided period, which varies from lender to lender, the rate will be re-fixed according to the prevailing rate. If the prevailing rate is higher the EMI will be higher and if it is lower, then the EMI will be lower.
• In the case of step-up EMI, the EMI will be lower initially and will increase periodically through the loan tenure.
• If you have opted for a combination of fixed and floating rates of interest, the rate of interest will be fixed initially and will change to floating after a pre-decided period. With this change, the EMI will change.

Additional Info: Also check ICICI Home Loan EMI Calculator

With the pre-payment of loan, the principal amount will reduce in proportion to the repaid amount. At this time, you will have two options. You can either choose to reset the EMI or choose to reduce the loan tenure.

If you choose for a reset in EMI, the EMI will be reduced keeping the loan tenure constant.

If you choose to keep the EMI constant, then the loan tenure will reduce.

Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.