Karur Vysya Bank Home Loan Interest Rates

Karur Vysya Bank follows the MCLR interest structure for its Home Loans. MCLR concept is active in all banks with effect from April 01, 2016. Many banks have switched to an external benchmark rate by announcing retail loan products linked to RLLR. However, Karur Vysya Bank has not announced anything in this regard.

Karur Vysya Bank has announced its MCLR with effect from September 07, 2019. The MCLR of Karur Vysya Bank for various tenures is as hereunder.

• The rates mentioned above will apply to new loans sanctioned on or after September 07, 2019
• It will also apply to the existing MCLR-linked Home Loans where reset facility is available

The interest rates applicable to Karur Vysya Bank Home Loans are as follows:

Karur Vysya Bank Home Loan Interest Rates - Points to Note

• Karur Vysya Bank links its MCLR to the housing loan rates. The MCLR is a floating rate. Hence, the housing loan interest rate fluctuates with every change in the MCLR, depending on the reset frequency.
• The Home Loan interest rates vary from 8.80% to 11.55%
• Various factors decide the Home Loan spread, such as:
• Type of borrower and occupation. Salaried borrowers get an advantage over the self-employed individuals.
• The credit rating of the borrowers has a critical effect on the interest rate
• KVB Smart Home Loans have the lowest interest rate
• The Home Loan interest rates for NRI borrowers are the same as that of resident borrowers
• The Home Loan for a third house comes under Commercial Real Estate. The rate of interest for CRE loans is higher than that of the regular Home Loan.

Karur Vysya Bank Home Loan Interest Rate Calculation

Karur Vysya Bank adopts the daily reducing balance method for calculating Home Loan interest. The ideal mode of repayment is EMI. Agriculturists have the option to repay the Home Loan in EQI (equated quarterly instalments) or EHYI (equated half-yearly instalments). It is because farmers do not have a regular monthly income. Their income coincides with the harvesting season.

• In-principle approval in 15 minutes subject to satisfying CIBIL scores and internal ratings
• Extended repayment tenures up to 25 years
• The maximum moratorium period extending up to 24 months
• No prepayment or foreclosure charges
• All resident individuals can apply for Home Loans
• Non-resident Indians can apply under the KVB-Gruhapravesh Scheme
• Home Loans available for all purposes such as construction, purchase, repairs, renovations, and purchase of plots.
• Balance takeover facilities available
• No maximum limit
• Attractive interest rates

EMI is the best concept for repaying Home Loans. EMI comprises of two constituents, the interest repayment part and the principal repayment component. Both of these components are variable. In the initial stages of Home Loan repayment, the interest component is higher than the principal repayment constituent. However, as you keep repaying your instalments on time, the principal repayment portion keeps on increasing. 

Karur Vysya Bank customers have the following repayment options:

• Post-dated cheques
• Standing instruction to debit savings/current account
• Internet/mobile banking transfer
• Cash at Karur Vysya Bank branch

Other bank customers can repay the Home Loan through the following ways:

• Submit PDCs
• Register for an ECS mandate
• Use internet banking to remit funds through NEFT/RTGS/IMPS
• Pay cash at Karur Vysya Bank branch

Online Application

• Karur Vysya Bank enables customers to apply for their Home Loans online
• The online application form requires the applicants to submit their contact details
• Karur Vysya Bank officials will contact you to complete the formalities

Apply at the branch

• Visit any branch of Karur Vysya Bank and apply for a Home Loan

Through MyMoneyMantra

• Access MyMoneyMantra website
• Select Home Loans
• Provide the information asked for
• Submit your mobile number and email ID
• MyMoneyMantra sends you an OTP on your phone
• Enter the OTP to confirm the application
• Access various Home Loan options on a single screen
• Choose your loan provider as Karur Vysya Bank
• Continue with your loan application

MyMoneyMantra Home Loan executives will help you with completing the necessary formalities.

Use the EMI Calculator provided on the Karur Vysya Bank website to determine your Home Loan EMI.

Submit the following information to get your EMI:

• Loan amount
• Rate of interest
• Loan repayment tenure

MyMoneyMantra has a similar EMI Calculator to help customers to know their EMI.

Karur Vysya Bank has a domineering presence in the state of Tamil Nadu. The bank is an active player in PMAY. The rates of interest on PMAY Home Loans are the same as that of regular Home Loans. The upfront interest subsidy is the only distinguishing factor. The upfront subsidy reduces the EMI considerably. The details of the PMAY scheme are as follows:

Karur Vysya Bank PMAY Home Loan - Points to Note

• The PMAY subsidy is an upfront interest subsidy
• The subsidy amount depends on the following factors:
  • The eligibility of the borrower
  • The loan amount eligible for a subsidy has a restriction
  • The subsidy amount has a ceiling as well
• The crediting of the interest subsidy affects the EMI

Income tax concessions are available on Karur Vysya Home Loan repayments. The Income Tax Act allows tax rebate on interest as well as principal amount repayment.

Interest Repayment: Sec 24 of the IT Act provides concession of 2 Lakhs per borrower per annum on interest repayment of Home Loan.

Principal Amount Repayment: Sec 80C of the IT Act offers a rebate in income tax for the repayment of the principal portion of Home Loan up to 1.50 Lakhs.