Karnataka Bank Loan Against Property
Apply for Karnataka Bank Loan Against Property up to Rs 5 crore at attractive Loan against property interest rates ranging from 12.73% -13.93% p.a for your business or personal needs. The bank offers flexible repayment tenure for up to 10 years. Agriculturists can opt for a yearly repayment option while other borrowers repay in regular EMIs. Your loan will be linked to an external benchmark - 6 Months T-Bill (Treasury Bill). Submit your loan application online for swift processing.
Apply for Karnataka Bank Loan Against Property at Attractive Interest Rates
Karnataka Bank Loan Against Property Interest Rates
The following are the interest rate details of the Karnataka Bank Loan Against Property:
- The rate of interest on KBL-Mortgage is 12.73% -13.93% p.a. for a loan up to Rs. 750.00 lakh.
- The rate of interest on KBL-Mortgage availed as an overdraft facility is 12.93% - 14.13% p.a.
- The rate of interest on KBL-Lease N Cash is 12.13% - 13.38% p.a.
Types & Features of Karnataka Bank Loan Against Property
Karnataka Bank offers three variants of Loan Against Property, each designed to meet different financial needs:
1. KBL Mortgage / Property Mortgage Loan
- Purpose:
- Can be used for personal or business requirements, consumption purposes, or for property repairs/renovation/extension.
- For NRIs, usage must comply with FEMA guidelines.
- Loan Amount (Quantum):
- Up to 50% of the property’s market value
- Minimum loan: ₹3 Lakhs
- Maximum loan: ₹5 Crores
- For salaried employees: Up to 36 times net take-home salary
- For self-employed: Based on the average annual income of the last 2 years (as per ITR)
- Interest Rate: 12.73% – 13.93% p.a. (for loan amounts up to ₹7.5 Crores)
- Security:
- Equitable Mortgage (EMT) of the property being financed
- Personal guarantee of spouse
- If the spouse's guarantee is not available, a third-party personal guarantee from a creditworthy individual
- Repayment: Maximum repayment tenure of 10 years
2. KBL Suvidha OD
- Purpose: Can be availed for personal financial requirements
- Loan Amount (Quantum):
- For salaried: Up to 24 times net take-home salary
- For self-employed: Average annual income of the last 2 years
- Minimum: ₹1 Lakh
- Maximum: ₹25 Lakhs
- Margin requirement: 33.33%
- Interest Rate: 14.28% p.a.
- Security:
- Equitable mortgage of the property
- OR liquid securities valued up to 150% of the sanctioned loan
- Personal guarantee of spouse/creditworthy third-party guarantor
- Repayment / Tenure:
- Valid for 24 months, subject to annual review
- Repayable on demand as per OD rules
3. KBL Lease-N-Cash
- Purpose: For property repairs, renovation, and investment purposes
- Loan Amount (Quantum):
- Maximum: 80% of net rent receivable or rent receivable for the unexpired lease period (whichever is lower)
- Subject to a maximum of ₹5 Crores
- Interest Rate: 12.13% – 13.38% p.a.
- Security:
- Equitable mortgage of the leased property
- OR any other residential/commercial property
- Repayment: Maximum repayment tenure of 84 months (7 years)
Karnataka Bank Loan Against Property Fees & Charges
The charges involved in availing the Karnataka Bank Loan Against Property are as mentioned below:
| Type of Charge | Description |
|---|---|
| Processing charges | As per schematic guidelines |
| Prepayment charges | Nil |
| Charges for Legal Scrutiny Report | As charged by the panel advocate |
| Charges for switching from base rate to MCLR |
|
| Valuation charges |
|
| For the issue of Credit Report | 100 for consumer reports and 1,000 for commercial reports |
| EMI dishonour charges | 250 per occasion for EMI up to 10,000 not paid within 30 days and 500 per occasion for EMI above 10,000 not paid within 30 days. |
Karnataka Bank Loan Against Property Eligibility
The parameters that have to be complied with to be eligible for the Karnataka Bank Loan Against Property are:
- The applicant should be a resident Indian or NRI with an Indian Passport
- The minimum income for salaried individuals should be 10,000 p.m., and for the self-employed, an annual income of 1,20,000.
- For salaried individuals who are NRIs, the minimum income should be 1 Lakh p.m., and for the self-employed who are NRIs, the minimum annual income should be 12 Lakhs.
- Pensioners should have other sources of income apart from the pension
- The applicant should be a bona fide owner of the property
- The minimum entry age of the applicant is 21 years
- The loan can be availed in joint names to supplement the income
Documents Required for Karnataka Bank Loan Against Property
The documents required to avail the Karnataka Bank Loan Against Property are as mentioned below:
| Type of Document | Salaried | Self-employed |
|---|---|---|
| KYC Documents | Aadhar Card, Voter's ID Card, Pan Card, Passport, Driving Licence, Utility Bills | |
| Income Proof | Salary slips for the last 6 months, Form 16 and ITR for the last 2 years, Bank Account Statement for the last 6 months. | Audited Balance Sheet and P & L Account for the last 3 years. ITR with income computation for the last 3 years. Bank Account statement for the last 12 months. Bank Account statement of loan accounts for the last 12 months. |
| Property Documents | Chain of title deeds of the property and any other document to prove the marketable title. | |
Security Required for Karnataka Bank Loan Against Property
The following security will be required to avail the loan:
- Equitable Mortgage of the property against which the loan is sanctioned.
- Personal guarantee of the spouse, wherever possible, and in the absence of the guarantee of spouse, personal guarantee of a third-party who is creditworthy.
FAQs
The basic documents required are KYC documents, Income Documents, Proof of Business and Property Documents to avail the Karnataka Bank Loan Against Property.
The easiest way to apply for the Karnataka Bank Loan Against Property is online through the official website from anywhere at any time. You will be able to get the information about the various types of loans under the respective scheme and choose the best from them. You can customise the loan amount and the tenure as per your requirement. You can also track the status of the loan application online through the website. For any queries, you can contact their representative. You can also apply for the loan by submitting the loan application along with the required documents at the nearest branch of the bank.
Yes. There is a minimum income requirement for applying for the Karnataka Bank Loan Against Property, and the details are as given below:
- The minimum income for salaried individuals is 10,000 p.m. and for the self-employed, an annual income of 1,20,000.
- For salaried individuals who are NRIs, the minimum income should be 1 Lakh p.m., and for the self-employed who are NRIs, the minimum annual income should be 12 Lakhs. Pensioners should have other sources of income apart from the pension.
The various charges collected for the Karnataka Bank Loan Against Property are as detailed below:
- Processing charges: As per the scheme guidelines.
- Pre-payment charges: Nil
- Valuation charges:
- For a property with a value up to 5 Lakhs, 0.15% of the value with a minimum of 250 and a maximum of 750.
- For a property with a value of above 5 Lakhs and up to 10 Lakhs, 0.125% of the value with a minimum of 750 and a maximum of 1,250.
- For a property valued above 10.00 lakhs and up to 50 Lakhs. 0.10% of the value with a minimum of 1,250 and a maximum of 5,000.
- For a property valued above 50 Lakhs and up to 1 Crore, 5,000 + 0.05% for every 10 Lakhs or part thereof, beyond 50 Lakhs with a minimum of 5,000 and a maximum of 7,500.
- For a property valued above 1 Crore, 7,500 + 0.025% for every 10 Lakhs and part thereof beyond 1 Crore with a minimum of 7,500 and a maximum of 10,000.
- For KBL Mortgage Loan, the quantum of loan provided will be 50% of the market value of the property, subject to a minimum of 3 Lakhs and a maximum of 5 Crores. For salaried individuals, the maximum loan quantum will be 36 times the net take-home salary, and for the self-employed, it will be the average annual income of the last 2 years as per the ITR.
- For KBL Suvidha-OD, the quantum of the loan for salaried individuals is 24 times the net take-home salary, and for the self-employed average of the last two years' annual income, with a minimum of 1 Lakh and a maximum of 25 Lakhs. The margin stipulated is 33.33%
- For KBL Lease N Cash, the maximum loan permitted is 80% of the net rent receivables or net of rent receivable for the unexpired lease period, whichever is less, subject to a maximum of 5 Crores.