Karur Vysya Bank one of the leading banks in the country that started operations during the year 1916. The bank has completed over 100 years of operations and has 788 branches spread over the country as on date. The headquarters of the bank is in Chennai. The bank offers services to the Corporate Sector, Agricultural Sector, and Retail Sector. The bank offers housing loans, personal loans among others under the Retail Sector.
Karur Vysya Bank provides home loans for resident Indians and HUF under the Happy Loan Scheme and provides home loans for NRIs under KVB-Gruhapravesh. The whole loan process is entirely paperless and in principle sanction will be provided subject to satisfactory credit score.
Additional Info: Apply SBI MaxGain Home Loan @6.70%
EMI or Equated Monthly Instalment is a specific amount that you will be paying to the loan provider on a spefic date every month until the agreed tenure. EMI constitutes both the interest and principal components. With the amortization table available on the EMI calculator, you can understand how the interest and principal will be adjusted towards the loan amount through the repayment tenure.
Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.
Karur Vysya Bank provides loans for both Indian Residents, HUF, NRIs and PIOs under different loan products. The loan is provided the repurchase of an independent house/flat which is not over 15 years or for the purchase of a new house/flat. A loan is also provided for the repurchase of a plot/construction of a house/purchase of a plot and construction thereon. If a loan is availed for the construction of a house, then the construction should be completed within 24 months from the date of the disbursement of the loan. The facility for the take over of existing home loans with other banks is also available.
|Name of the product||Eligibility||Quantum||Interest||Repayment||Security||Charges|
|KVB Happy Home Loan||Resident Individuals and HUF||70% to 90% of the market value of the property||Ranging from 7.15% p.a.to 9.35% p.a.|
Maximum repayment period 25 years.
Moratorium period of 24 months for construction and 3 months for repairs and renovation
EMT of the property acquired as prime security.
Collateral security of LICP, KVP and Fixed Deposits.
Third party guarantee of a creditworthy person in the absence of a co-borrower
EMT of the property acquired
Processing charges of 2500/- for loans up to 25.00 lakhs, 5000/- for loan above 25.00 lakhs and up to 50.00 lakhs and 7500/- for loans above 50.00 lakhs.
No pre-payment charges
NRIs and PIOs are eligible
Minimum age 23 years
Minimum 2 years of employment abroad with a steady income.
NRIs should have valid Indian Passport and PIOs should have a valid foreign passport.
Valid work contract required.
Minimum net monthly income US $ 1500 or annual income of US $ 18000/- (or equivalent in any other foreign currency)
|70% to 90% of the market value of the property.||Ranging from 7.15% p.a. to 9.35% p.a.|
Additional Info: Looking for 10 Lakh Home Loan? Check EMI & Apply.
The lowest EMI as on date is 716/- per lakh for Happy Home Loan @ 7.15% p.a. The rate of interest for Happy Home Loans starts at 7.15% and goes up to 9.35% p.a.
EMI for a home loan at 7.15% p.a. interest.
|Loan amount||5 years||10 years||15 years||25 years|
Additional Info: Also Check LRD Loan
The lowest EMI as on date is 877/- per lakh for KVB Grihapravesh @ 7.15% p.a. The rate of interest for KVB Grihapravesh starts at 7.15% p.a. and goes up to 9.35% p.a.
EMI for a loan at 7.15% p.a. interest
|Loan amount||5 years||10 years||15 years||25 years|
Additional Info: Best Home Loan Interest Rates @6.70%
EMI calculator is a financial tool that makes the calculation of EMI very simple and fast. Calculating the EMI manually is a tedious process and you may tend to get some errors in the calculation when calculations are made using various combinations. With the Home Loan EMI calculator comparison of deals is very easy and the accuracy is 100%.
You can apply the following formula to calculate the EMI
P*r* (1+r) ^n/([(1+r) ^n]-1)
P stands for Principal. Principal is the original amount that has been sanctioned by the lender and it depends on the requirement, income and the repayment capacity. The higher the loan amount the higher will be the EMI.
R stands for rate of interest. The rate at which interest is charged on the principal amount is the rate of interest. The rate of interest differs from lender to lender. The rate of interest has a direct impact on the EMI and it is essential for you to compare the home loan interest rates of different lenders before you apply for the loan.
N stands for the loan tenure. Tenure is the period that is allowed to clear the entire loan. Since the repayment is made monthly the tenure is calculated in months. The longer the tenure the lesser will be the EMI and the shorter the tenure, the higher will be the EMI.
Additional Info: Also check Pan Number for Banks
EMI is decided according to the loan amount, loan tenure and the rate of interest.
Loan amount: This is the amount sanctioned by the loan provider according to your eligibility which is based on your income and repayment capacity. If the loan amount is higher the EMI will be high and if it is lower the EMI will be lower.
Rate of interest: The rate of interest charged determines the EMI. The current rate of interest for Karur Vysya Bank Home loan varies between 7.15% to 9.35%. The higher the rate of interest, the higher will be the amount. With a floating rate of interest, there will be a fluctuation in the rate of interest periodically throughout the tenure. The EMI also will increase/decrease as per the increase/decrease in the rate of interest.
Tenure: Since tenure is a major factor that decides the EMI you should choose the tenure carefully. In a quest to get a lower EMI you should not choose a higher tenure though you can afford a higher EMI. The longer the tenure the higher will be the cost of the loan. If you are in the prime of your career, you can choose a higher tenure in the beginning and as you go up the ladder and the income increases you can opt for a shorter tenure to pay back the loan early and save on the cost of the loan.
If you have opted for a higher EMI in the beginning and later you realise that you are not able to service the high EMI due to additional commitments over a period of time, you can opt for a lower tenure and get the EMI reduced to the affordable level.
Even on balance transfer from one loan provider to another loan provider at a lower rate of interest, the EMI is bound to change. If the new loan provider offers a longer tenure then the EMI will reduce further.
Pre-payment: Karur Vysya Bank provides the pre-payment option without any penalty. You can take advantage of the provision and make pre-payments to the loan along with the regular EMI. With such pre-payments, the outstanding loan balance will decrease and if you opt for a reset in the EMI, the EMI will reduce while the tenure remains the same. Alternatively, you can choose for a change in tenure wherein the tenure will be reduced and the EMI will remain constant. This arrangement will reduce the interest cost on the loan.
Step-up EMI: Step-up EMI is a facility wherein the loan-provider sets the EMI at a lower level initially which will increase periodically.
Additional Info: Also check ICICI Home Loan EMI Calculator
You will have to consider a few things for deciding the right EMI
Decide on the loan amount to borrow: This decision depends on the value of the property you are going to invest in and the funds available with you for a down payment. The commitment towards a home loan is proportionately high and will be for a longer tenure. So, try to avail the loan very judiciously and keep it as low as possible by making a higher down payment out of your own sources. The EMI depends on the loan amount and will be lower if the loan amount is less.
Combine the debts: Sum up your existing monthly commitments and arrive at the surplus amount available for the proposed commitment. If the available funds do not suffice for the loan amount you need, you can contemplate closing some of the short term loans or manage your spends to provide for the required EMI for the desired level of the loan.
The LTV ratio: The loan quantum depends on the income, repayment capacity and the market value of the property. The LTV ratio stipulated by Karur Vysya Bank is 70% to 90%. The loan quantum will be 70% to 90% of the market value of the property. The margin money stipulated is 10% to 30% of the value of the property. If the available funds for meeting the margin is low then you will have to go for a loan with a higher LTV ratio. The higher the LTV ratio, the higher will be the interest and obviously, the EMI will be higher.
Debt to Income Ratio: Debt to Income ratio is the funds available after providing for all the existing commitments and the proposed commitment by way of home loan EMI. The debt to income ratio stipulated by Karur Vysya Bank is 25% of the gross pay.
Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.
Interest is one of the factors that determine the EMI. So, the EMI is bound to change with the change in interest rates. If the rate of interest is low the EMI will be low and if the rate of interest is high, the EMI will be high.
That is the reason the EMI undergoes a change several times if the loan is availed at a floating rate of interest since the interest undergoes change several times during the loan tenure.
In the case of a fixed rate of interest, the EMI will undergo change when the interest is reset at the prevailing rate after a certain period.
In the case of step-up EMI, the EMI will undergo a change from a higher to a lower level in stages all through the loan tenure.
Additional Info: Also check SBI Home Loan EMI Calculator
The outstanding principal will change with every pre-payment made along with the regular EMI. With the change in the outstanding principal, the EMI will also change if the reset of EMI is opted for. Otherwise, the EMI will be kept constant and the loan tenure will be reduced.
Additional Info: Also check Banglarbhumi West Bengal Land Record
The rate of interest varies between 8.80% to 11.55% for Happy Home Loan and between 9.55% to 11.55% for KVB Grihapravesh for NRIs.
A slab wise processing charge will be collected for Karur Vysya Bank Home Loan.
Rs. 2500 + GST will be collected for a loan up to 25.00 lakhs
Rs. 5000 + GST will be collected for a loan above 25.00 lakhs and up to 50.00 lakhs.
Rs. 7500 + GST will be collected for a loan above 50.00 lakhs.
No. Karur Vysya Bank permits pre-payment towards the loan without charging penalty.
Normally the EMI will begin soon after the entire disbursement of the loan. But in the case of tranche EMI, the borrower will be allowed to pay the EMI towards the principal and the interest as soon as the disbursement starts. The EMI will change as the disbursed amount changes. Once the entire disbursement is done, the regular EMI will begin.
The maximum loan tenure provided by Karur Vysya Bank for Home Loans is 25 years.
You can compare the offers of various banks with an EMI calculator. Each bank has a different rate of interest and the tenure also differs from bank to bank. You can choose the best loan with the least EMI that suits your pocket.
EMI consists of both the principal and the interest component. As you keep paying the EMI the principal amount keeps decreasing. Initially the interest component will be high but as the principal balance keeps reducing the interest component also reduces and at the end of the tenure you will have paid the entire loan. The amortization schedule helps you understand the apportionment of the interest and principal component from the EMI towards the loan and also gives a break-up of the total principal and interest paid at the end of the tenure.