While in urgent need of funds, the first category of loan that comes to your mind is the personal loan. The reason being the easy availability of the loan without any security and at the quickest turnaround time. But have you ever tried to look at other options, especially if you have an unencumbered property which is not put to use?
Loan Against Property will be the best option since you get a very flexible repayment period up to 10 years, unlike a personal loan where the repayment period is restricted to 5 years. The rate of interest is also lower when compared to personal loans since a Loan Against Property is a secured loan. Here again, the end use of the loan is not restricted, and you can use it for any purpose similar to a personal loan.
Karnataka Bank, the 12th largest public sector bank in the country, offers a Loan Against Property at a very competitive rate and with speedy approvals. The vast presence of the branch in the country makes it convenient for you to approach any of the nearest branches of the bank or you can even apply for the loan online. The loan is granted against residential property with a structure and also against residential plots. Commercial/industrial properties are also accepted as collateral security.
There are three types of Karnataka Bank Loan Against Property:
|Name of the product||Purpose||Quantum||Interest||Security||Repayment|
|KBL Mortgage/ Property 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.
|The rate of interest will be 11.22% for a loan up to 1 Crore and 12.22% for a loan above 1 Crore.||EMT of the property against which the loan is granted and the personal guarantee of the spouse. In the absence of the guarantee of the spouse, third-party guarantee of a person who is creditworthy.||The loan should be repaid within a maximum period of 10 years|
|KBL Suvidha OD||The loan can be utilised for personal requirements.||The rate of interest applicable is 14.13% p.a.|
The tenability of the loan is 24 months with an annual review and
repayable on demand as applicable under the OD Rules.
|KBL Lease N Cash||The repair and renovation of the property and for investment.||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.||The rate of interest charged for the loan is 10.92% p.a.|
EMT of the property against which the loan is sanctioned or any other residential/
|The loan to be repaid within a maximum period of 84 months.|
The parameters that have to be complied with to be eligible for the Karnataka Bank Loan Against Property are:
The following are the interest rate details of Karnataka Bank Loan Against Property:
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|
|Charges for Legal Scrutiny Report||As charged by the panel advocate|
|Charges for switching from base rate to MCLR|
|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.|
Following security will be required to avail the loan:
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.|
Having knowledge of the addition to your monthly budget by way of the proposed EMI is very essential before you apply for a loan. If you apply for the loan without being aware of the additional burden, which may turn out to be more than expected, then you will be inviting stress on your monthly budget. With the EMI value on hand, you can plan your finances or limit your loan to the affordable EMI level without hurting your monthly budget.
You can calculate the EMI using the MyMoneyMantra EMI Calculator for which you will have to follow some simple steps:
The bank also offers the loan products mentioned below:
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Up to Rs. 5 Crore loan against property can be availed by Salaried and self-employed applicants online as well as offline. The LAP can be used for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers.
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 various charges collected for the Karnataka Bank Loan Against Property are as detailed below: