Karnataka Bank

Karnataka Bank Loan Against Property

Apply Karnataka Bank  Loan Against Property

About Karnataka Bank Loan Against Property

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.

Types and Features of Karnataka Bank Loan Against Property

There are three types of Karnataka Bank Loan Against Property:

  • KBL Mortgage/ Property Mortgage Loan
  • KBL Suvidha-OD
  • KBL Lease-N-Cash
Name of the product Purpose Quantum Interest Security Repayment

KBL Mortgage/ Property Mortgage Loan

  • The loan can be utilised for business/ personal requirement, for consumption purpose and for repairs/ renovation/ extension of the property.
  • In the case of NRIs, the purpose for which the loan is utilised should be as per FEMA guidelines.

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.

  • For salaried individuals 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%

The rate of interest applicable is 14.13% p.a.

  • Equitable mortgage of the property against which the loan is granted/liquid securities with a value up to 150% of the loan sanctioned.
  • Personal guarantee of the spouse/third-party guarantee of a creditworthy person.

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/

commercial property.

The loan to be repaid within a maximum period of 84 months.

Eligibility for Karnataka Bank Loan Against Property

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 NRIs 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 bonafide 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

Karnataka Bank Loan Against Property Rate of Interest

The following are the interest rate details of Karnataka Bank Loan Against Property:

  • The rate of interest on KBL-Mortgage is 11.22% p.a. for a loan up to 1 Crore and 12.22% p.a. for a loan above 1 Crore.
  • The rate of interest on KBL-Mortgage availed as an overdraft facility is 11.32% p.a.
  • The rate of interest on KBL-Lease N Cash is 10.92% p.a.

Processing Fees & Other Charges for 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

Prepayment charges

Nil

Charges for Legal Scrutiny Report

As charged by the panel advocate

Charges for switching from base rate to MCLR

  • No charges for a loan up to 5 Lakhs and for loans above 5 Lakhs and up to 1 Crore, 0.10% of the outstanding balance in the loan account with a minimum of 1,000.
  • For a loan above 1 Crore, 0.10% of the outstanding loan balance with a minimum of 2,500 and a maximum of 1,00,000.

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 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 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.

Security Required for Karnataka Bank Loan Against Property

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 the spouse, personal guarantee of a third-party who is creditworthy.

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.

Why Apply for Karnataka Bank Loan Against Property through MyMoneyMantra?

Applying for a loan is not a simple task. Earlier, when there were only a few players in the market, it was very easy to choose your loan provider and apply for a loan. There were not many comparisons to be made and the rates and offers were more or less similar in almost all the financial institutions. Also, the condition that only the existing customers who had a relationship with the institution for at least one year were only eligible for loans made it even easy as the choice became limited.

Now with so many players in the market, providing competitive offers and also encouraging new customers to avail loans, it has become very tiring. You cannot randomly walk into any loan provider and apply for a loan. With so many offers available, you would like to make an informed decision by shopping around and choosing the best deal. If you had to do the market research all by yourself, it would take all the time in the world.

Instead, you can apply for a loan through online lending marketplaces, like MyMoneyMantra, that have all the comparative data of several loan providers ready for you on a single screen on the website. You can also use the EMI Calculator available under the financial tools option on the home page of the website. You can calculate the EMI multiple times using different data from the comparative data on the list available to choose the best deal as per your budget. The loan experts at MyMoneyMantra will help you choose the best quote as per your requirement and income. They will also study your credit history and will provide the necessary advice, if required, regarding your repayment pattern. Once you fill the application online through their website, the loan experts at MyMoneyMantra will assist you through and through till the disbursement of the loan. The team at MyMoneyMantra can make the whole process of availing of the loan like a cakewalk.

How to Use the MyMoneyMantra Loan Against Property EMI Calculator?

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:

  • Log in to the website of MyMoneyMantra
  • Choose the EMI Calculator under the Financial Tools option available on the home page of the website.
  • You will have to provide the required input like the loan amount, loan tenure, and the interest rate.
  • Once the data is provided the EMI will be calculated and displayed immediately on clicking the Calculate button.
  • The best quotes as per your requirement and income also will be available
  • Use the EMI Calculator as many times as needed by varying the data as per the quotes available and choose the one that suits your budget.
  • After choosing the loan provider, proceed to fill the application form
  • The representatives of MyMoneyMantra will collect the application form and the required documents from your doorstep and will take the process further from handing over the application and the documents to the loan provider till the loan disbursement.
  • All the services of the team can be availed free of cost

Why Use Loan Against Property EMI Calculator?

Calculating the EMI before applying for the loan under any loan scheme is the basic step. Now, this is easier said than done. If you have no dearth for time, you can calculate the EMI by applying the formula for arriving the EMI manually. Since the loan provider has to be decided after making a detailed study of the comparative offers available, you will have to use the EMI calculator multiple times. Imagine the amount of time you will have to spend on such elaborate, complicated and confusing calculations multiple times. Even with all the efforts, you cannot rely on the accuracy as there may be errors while calculating the EMI several times.

By using the Loan Against Property EMI Calculator, you can spare yourself from this lengthy procedure. Using the EMI Calculator will save your valuable time which you can use for other productive purposes. The EMI arrived at by using the Calculator can be relied upon since it will be 100% accurate.

By arriving at the EMI before applying for the loan, you will prepare yourself for the additional commitment and will plan your monthly budget accordingly. Also, you will have access to various deals as per your requirement and income for you to choose. An EMI Calculator is definitely a better option compared to manual calculation.

Other Loans Offered by Karnataka Bank

The bank also offers the loan products mentioned below:

  • KBL Apna Ghar
  • KBL Home Comfort
  • KBL Ghar Niveshan
  • KBL Home Top Up
  • KBL Car Finance
  • KBL Easy Ride
  • KBL Vidya Nidhi
  • Skill Loan Scheme
  • KBL Xpress Cash Loan
  • Gold Loan
  • KBL Ravi Kiran Loan
  • KBL Insta Cash

FAQs - Karnataka Bank Loan Against Property

What are the basic documents required for the Karnataka Bank Loan Against Property?

The basic documents required are KYC documents, Income Documents, Proof of Business and Property Documents to avail the Karnataka Bank Loan Against Property.

What are the different ways to apply for 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.

Is there any minimum income requirement for applying for the Karnataka Bank Loan Against Property?

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.

What are the various charges collected for the Karnataka Bank Loan Against Property?

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.

What is the maximum loan provided under the Karnataka Bank Loan Against Property?

  • 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 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.

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