Karur Vysya Bank Loan Against Property

Karur Vysya Bank has been operational for over 100 years and is till date one of the most trusted banking institutions in the country. The bank has consistently upgraded itself to make loans and other banking facilities easily available to all its customers.

Karur Vysya Bank offers Loans Against Property for both business and personal use. The quantum of the loan provided is based on the value of the property. Karur Vysya Bank offers the most competitive rates of interest as well to help you get the best financial assistance that you need in case of any emergency or for your business needs.

Check Loan Against Property Interest Rate for lowest LAP Interest Rates.

Karur Vysya Bank loan against property interest rates depends upon the type of mortgage loan that you have applied for. The interest rates are extremely competitive and start at as low as 10.20%.

The processing fees applicable is based on the type of loan applicant. In case of individuals who are applying for a loan against property, the processing charges are 0.50% of the loan amount that is sanctioned. In case of businesses, the processing charges are 0.75% of the loan amount that is sanctioned. GST charges apply to the processing charges.

The title deed of the property must be deposited as primary security against the loan. The bank may additionally require a guarantor for the loan. The guarantor must be an individual with ample net worth as deemed suitable by the bank. In case of businesses, the guarantor must be a partner or proprietor of the business or may also be the husband of a lady partner or owner. The loan to market value provided by Karur Vysya Bank is 60%. The minimum loan amount available is 10 Lakhs and the maximum loan amount available is 500 Lakhs.

Some service charges apply to mortgage loans that you should be aware of before you apply for the loan.

Karur Vysya Bank offers Loans Against Property to both individuals and businesses. The features of these loans are designed to ensure that you can get the most affordable finance options.

The features of Karur Vysya Bank Loans Against Property are as mentioned below:

Purpose: This loan is provided for any personal use such as education fees, medical expenses as well as any business investment.

Loan Amount: The minimum loan amount provided to individuals is 10 Lakhs and the maximum loan amount available is 300 Lakhs. For business entities, the minimum loan amount provided is 20 Lakhs and the maximum loan amount provided is 500 Lakhs. The loan amount depends upon the value of the property.

Margin: A margin of up to 40% must be provided for these loans as the loan to market value is 60% of the total value of the property.

Interest Rate: The rate of interest offered is a minimum of 10.20% and a maximum of 12.95%. The rate of interest applicable depends upon the CIBIL rating and the income of the individual or the business.

Repayment: For individuals applying for the loan, a maximum repayment tenure of 100 months is allowed. In case of business mortgage loans, the minimum repayment tenure is 12 months while the maximum repayment tenure allowed is 84 months.

Security: The primary security against this loan is a deposit of the title deed of the commercial or residential property. A guarantor is required for a loan against property as well. The guarantor must have a good net worth that is deemed suitable by the bank.

Processing Fees: A processing fee of 0.50% of the loan amount is levied on individuals applying for the loan. In case of business mortgage loans, the processing fees applicable is 0.75% of the loan amount that is sanctioned.

Foreclosure Charges: The foreclosure charges applicable are 2% of the loan amount that is pending.

Also Read - 7 Reasons Why Loan Against Property Applications Get Rejected

The eligibility criteria for Karur Vysya Bank varies for individuals and businesses. The eligibility criteria are as follows:

For Individuals:

The applicant of the loan must be a resident of India.

The property must be owned by the applicant or must be jointly owned in case of co-applicants.

The eligibility for the loan is based on the average income over the last three years as is reflected in the Income Tax Returns filed by the individual.

The minimum monthly income required for a loan against property is 40000.

For businesses:

The property that is mortgaged should be owned entirely by the business enterprise, or the proprietor, or the partner, or the spouse, major children or parents of the partner or proprietor.

The guarantee must be extended for the property by the title holder.

The business enterprise must have made profits over the last two years and should show potential in the business turnover in the future.

The owner of the property must be a resident of India.

The must be a Karur Vysya Bank branch within 50 km of the property that is to be mortgaged.

You can also check Loan Against Property Eligibility from Top Banks Online.

The documentation for Karur Vysya Bank Loan Against Property is minimal. The few mandatory documents that you need to submit to get an approval on your loan are as follows:

A duly filled application form along with passport sized photographs.

ID Proof: Government issued ID such as passport, PAN Card, adhaar card, voter's ID, Driving license

Age Proof: Adhaar Card, school leaving certificate, passport, voter ID or birth certificate.

Address Proof:

• For individuals- Rental agreement, passport, adhaar card, utility bills.
• For businesses- Shops and establishment certificates, rental agreements, lease agreements or utility bills.

A duly filled assets and liability form.

Income Proof:

• For individuals- Last 6 months salary statement and bank account statements, last three years' income tax returns with Form 16A.
• For businesses: Audited financial statements for the last three years, last three years' income tax returns, last one year current account statement.

In case of existing loans, 6 months' loan statements must be provided.

Title deed and other property documents such as the property tax receipts, allotment letter, approved plan of construction, conveyance deed etc.

You can also Check the necessary Documents required for a Loan Against the Property

Karur Vysya Bank provides loans against property with some of the best features that make them affordable and easy to obtain. Some of the highlights of these loans are as follows:

• These loans offer up to 60% of the market value of the property.
• There are no restrictions on how the sanctioned loan amount is used provided it is not used for any speculative purposes.
• The documentation for these loans is minimal, making them faster and more convenient.
• Subject to the rating and CIBIL scores of the applicant, the principal sanction on the loan is provided in just 15 minutes.
• The loan is provided against both residential and commercial property loan.
• The interest rates are competitive and extremely affordable.
• Repayment conditions are flexible.
• There are no hidden charges with these loans.
• The option of transferring the existing balance on a loan against property to Karur Vysya Bank is available to reduce the interest that is due.

You can also avail of an overdraft option as a loan against your property. An overdraft is different from a term loan as the entire loan amount is not disbursed at once. Instead, you get a drawing limit as per your eligibility and the value of the property.

Purpose: The overdraft facility provides you with a recurring limit that can be used for both business and personal use.

Loan amount: The drawing power allowed with this overdraft facility is up to 60% of the value of the property that is pledged against it.

Security: The title deed of the property is provided as primary security against the overdraft. Depending upon the applicant, the bank may also require third party guarantee against this loan.

Repayment tenure: This is a recurring loan that can be renewed each year. You get a maximum repayment of up to 120 months.

Processing fee: A processing fee between 0.50% of the loan amount and 0.70% of the loan amount is levied based on the type of applicant.

Foreclosure fees: 2% of the outstanding amount is charged as foreclosure fees.