About Karur Vysya Bank

Karur Vysya Bank had humble beginnings in 1916 in Karur, a small town in Tamil Nadu, famous for its textile manufacturing units. As banking was in its infancy in India, a significant proportion of the small textile manufacturers did not have access to proper financing opportunities. Two illustrious gentlemen, M A Venkatarama Chettiar and Athi Krishna Chettiar, pooled in a princely sum of 1 Lakh to establish Karur Vysya Bank Ltd. The bank has grown exponentially since 1916 to garner a total business of more than 1.10 Lakh Crores in 2019.

Karur Vysya Bank has an extensive branch network of 778 branches and 1639 ATMs situated all over India. The bank has the distinction of being one of the first banks to achieve 100% CBS. Karur Vysya Bank offers an array of loan products, of which the Home Loan assumes great significance.

About Karur Vysya Bank Home Loan

Karur Vysya Bank has an extensive Home Loan product to cater to the housing requirements of all sections of society.

Salaried individuals, self-employed persons, agriculturists, and NRIs are eligible to avail Home Loan from Karur Vysya Bank. Karur Vysya Bank Home Loan has the following salient features:

  • Available for a broad spectrum of the Indian population that includes people from all segments of society.
  • Non-resident Indians can also avail Home Loan from Karur Vysya Bank
  • Home Loans are available for an extensive range of purposes:
  • Construction of independent homes
  • Purchase flats, apartments, and independent houses (less than 15 years old)
  • Purchase a plot of residential land and construct your house subsequently
  • Take over Home Loan balances from other banks and financial institutions
  • Carry out repairs, renovations, modify or extend your existing home
  • Purchase flats or residential plots developed by Governmental authorities
  • Attractive rates of interest
  • Affordable and transparent processing charges
  • Flexible repayment tenure extending up to 25 years
  • No penalty on premature repayment of Home Loan
  • Generous moratorium period of up to 24 months

Other Products Offered by Karur Vysya Bank

Apart from Home Loans, Karur Vysya Bank provides different types of retails loans:

Loan Product Loan Tenure Rate of Interest Processing fee Ideal for

Home Loan

25 years

8.65% to 12.50%

Up to 7,500

All housing requirements

Personal Loan

72 months

Up to 12%

0.50%

Personal needs

Mortgage Loan

100 months

9.75% to 14.25%

0.50%

General purposes

Vehicle Loan

84 months

9.45% to 16.50%

Up to 7,500

Purchase of vehicle

Education Loan

84 months after the study period and moratorium

11.25% to 12.95%

Nil

Educational purposes

 

Karur Vysya Home Loan - How to apply?

  • Apply online - Karur Vysya Bank facilitates online applications for Home Loans. Submit your details online. Karur Vysya Bank Home Loan marketing officials will call back to collect further information and complete the documentation procedure. You can also make use of MyMoneyMantra, to apply for the loan online.
  • Apply at KVB branches - Approach any branch of Karur Vysya Bank and contact the Loan Officer or Branch Manager. Complete the loan application form and submit the necessary documents.

Karur Vysya Bank Home Loan - Documents Required

Karur Vysya Bank Home Loans are available to the resident and non-resident Indians, provided they satisfy all eligibility norms. Karur Vysya Bank requires documentary evidence to determine and verify your eligibility for a Home Loan. The documents can differ according to the category of the borrower.

Know Your Customer Documents - KYC

Identity Proof Documents - One of the following should suffice as ID proof
  • Aadhar Card
  • A valid passport
  • Voter's ID Card
  • PAN Card
  • Valid driving license
  • NREGA Job Card
  • Any ID card issued by the Government and acceptable to the bank
Address Proof Documents - Submit one of the documents listed below
  • Aadhar Card
  • Passport
  • Voter's ID
  • Driving License
  • NREGA Job Card
  • Postal ID
  • Any ID card issued by the Government showing address proof and acceptable to the bank
  • Telephone bill (Landline or post-paid mobile bill not more than two months old)
  • Electricity bill (Not earlier than two months) 
Date of Birth Proof - For determining loan eligibility and fixing maximum tenure
  • Aadhar Card
  • Passport
  • Voter's ID Card
  • Driving License
  • PAN Card
  • NREGA Job card or any Government-issued ID card detailing the date of birth and acceptable to the bank.
  • School Leaving Certificate
  • Insurance Policy (should be in force)
  • Birth Certificate (Should include your name and name of father/mother)
  • NRI customers, including PIOs, should provide a copy of their visas to prove their residence abroad.
  • Self-employed individuals and professionals should also furnish address proof of business premises.

Income Proof Documents

Salaried Individuals
  • Salary slips for a minimum of past three months (to establish consistency in salary)
  • Form 16 issued by the employer
  • IT Returns (Minimum two returns are essential)
  • Statement of bank account evidencing the credit of salary income (Minimum six months)
Self-Employed Individuals
  • IT Returns (a minimum of three years' returns)
  • Form 26AS
  • Statement of primary bank account evidencing credit of business proceeds/income (One year)
  • Financial statements for three years (audited statements with enclosures)
  • Statement of other bank accounts mentioned in the Balance Sheet (Six months)
  • Self-employed professionals should also furnish a copy of their educational/professional qualifications.
Non-Resident Indians and PIOs
  • Salary Slips for a minimum of three months to establish continuity of generation of income
  • Statement of account showing credit of salary (Minimum six months)
  • Income Tax returns or their equivalent (depending on the country you reside)
  • Employment Contract
  • Employee ID Card
  • Statement of NRE bank account in India (if you have rental or other income in India)

Documents Related to Property - Submit whichever is applicable

  • Photocopy of the approved plan of the building (readymade or proposed to be constructed)
  • An estimate of expenses as certified by an approved engineer (required for repairs and renovations).
  • Sale agreement (in the case of ready purchase of flat/house)
  • Construction agreement (if you purchase house/apartment under construction)
  • Completion certificate (for ready purchases)
  • Occupancy certificate (for ready purchases)
  • Outstanding balance letter and Asset Classification certificate from the existing banker (in the case of loan takeover from other banks).
  • An affidavit from the applicant declaring that the construction of the building is/will be as per the approved building plan.
  • Certificate from a chartered engineer (on bank's panel) that the structure of the building is consistent with the approved plan.

Karur Vysya Bank Home Loan Documents - Characteristics of KYC Document

The Reserve Bank of India has stipulated specific norms for banks to follow in matters regarding KYC. The KYC document should have the following characteristics:

  • Should be issued by a competent Government authority
  • Should have your name spelt correctly and be consistent with other ID proof documents
  • Include your father's name
  • Can include Date of Birth (double up as DOB proof document)
  • Can consist of the address (could serve as address proof document, as well)
  • Should consist of your photograph
  • Some documents like PAN Card and Driving license have your signature
  • Should carry the seal and name of the issuing authority

Karur Vysya Bank Home Loan Documents - Alternative KYC Documents

Karur Vysya Bank accepts the following additional documents as alternative KYC documents:

Other documents for proving the identity of the applicant
  • Letter issued by UIDAI detailing your name, age, address, and Aadhar number
  • Employee ID Card subject to the satisfaction of Karur Vysya Bank
  • Certificate from an acceptable Public servant or authority verifying the identity of the applicant
  • Government or Defence ID Card
  • Public Sector Unit Employee ID Card
  • Pension Payment Orders issued by Central/State Government departments and PSUs
  • Postal ID Cards
  • Student ID Cards issued by a reputed university approved by AICTE
  • Ex-serviceman Card with photograph
  • ID Card issued by Bar Council/ICWAI with a photograph
  • Defence Dependent Card with photo
  • Married Women ID Card with her maiden name to be supported by a true copy of the marriage certificate.
  • Credit Card of a reputed bank with the photo provided the card is not more than two years old
  • Registered Property Document with a photograph
  • Arms Licence issued by the Central Government
  • Freedom Fighter Pass issued by MHA, Government of India with a picture
  • ESIC ID with photo
  • Attestation of Talati/Patwari/Village Officer accompanies by rubber stamp and seal

Similarly, the following list of documents can serve as additional proof of address:

Address Proof - Alternative documents
  • Bank account statement giving details of address
  • Employer certificate subject to the satisfaction of the bank
  • Letter from a recognised public authority
  • Credit Card statement (should not be more than three months old)
  • IT or Wealth Tax Assessment Order
  • Letter from a Public Sector Employer
  • Pension Payment Order
  • Copy of Registered Sale agreement or lease deed
  • Certificate issued by hostel warden and countersigned by the principal if the applicant is a student residing in a hostel.
  • The branch manager of KVB can also certify the address on his/her letterhead, especially for low-risk customers.
  • Gas Connection bill
  • Post Office Savings Bank Pass-Book
  • Domicile certificate with proper address
  • Certification issued by VAO
  • Court divorce order

Points to note

  • The applicant need not provide all the documents mentioned in the KYC document list. One document can suffice to prove the identity and address.
  • The applicant should furnish the original document for verification by the bank. He/she can submit self-attested true copies when applying for the Home Loan.
  • All co-applicants should provide KYC documents and income documents (if available)
  • If you have registered with the KYC registry, furnishing the specific ID number should suffice for the bank.

Karur Vysya Bank Home Loan Documents - Frequently Asked Questions

Should I submit documents attested by Gazetted Officer when applying for Home Loans?

No, it is not necessary to submit attestation by a gazetted officer on your KYC documents. Karur Vysya Bank accepts self-attested KYC documents provided you furnish the originals to the bank for verification. The bank official verifies the original and stamps your document as verified.

What is the primary purpose of providing KYC documents?

When you apply for a Home Loan from Karur Vysya Bank, you enter into a contractual relationship with the bank. Confirming the identity of the parties to the agreement is a legal requirement. KYC documents are essential to verify your identity and capacity to enter into a banker-customer relationship.

Do I need to submit these documents if I already have an account with Karur Vysya Bank?

If you maintain any banking relationship with Karur Vysya Bank, you do not have to submit the KYC documents again. However, you should submit your income documents and documents related to the property.

If I maintain an account with another bank, do I have to submit KYC documents to Karur Vysya Bank when applying for a Home Loan?

As you do not have any contractual relationship with Karur Vysya Bank, the bank can demand KYC documents to confirm your identity. However, if you are registered with the KYC Central Registry, you can furnish the copy of the certificate or share your unique ID with Karur Vysya Bank. That should suffice for meeting KYC requirements.

Should I deposit the original property documents with Karur Vysya Bank at the time of the Home Loan application?

You do not have to deposit the original property documents at the time of applying for the loan. However, the bank advocate might like to verify the original document. You can show it to the advocate. The submission of original papers will take place after the loan approval process at the time of the creation of security.

What documents should I furnish at the time of the creation of security?

The bank advocate will search the Sub-Registrar Office records to determine the chain of ownership of your property. Usually, the search is for 30 years. The advocate might require checking various documents, especially if the property has changed hands frequently. The panel advocate submits a Legal Scrutiny Report (LSR) to the bank detailing the list of documents required for the creation of the mortgage. You should submit the papers as specified in the LSR.

What is an Encumbrance Certificate?

Encumbrance Certificate or EC is a document issued by the Sub-Registrar's Office detailing the encumbrances present on the property. It is a crucial document as it enables the advocate to establish the ownership chain. Any registration connected with the property reflects on the EC.

Can I view your EC online?

Today, the Sub-Registrar Office records are fully computerised. One can view EC online. However, banks insist on the submission of a certified EC from the SRO. The online EC is also a valid document that helps you to check the encumbrances on your property at any time.

Will Karur Vysya Bank ask for additional documents for appraising my Home Loan?

It depends on the situation. The banks check your repayment track record with the credit bureaus. If there are adverse remarks on this report, the bank can ask you to clarify the matter. You might have to submit the statement of account of your existing loans. At times, the credit bureaus do not update the records properly. As a result, the report can show accounts as open, whereas you might have closed them. You should produce documentary evidence to the bank to prove your claims.

Do I need to submit photographs to the bank when my ID proof document has my picture in it?

Yes, banks require Home Loan applicants to provide a minimum of two recent passport-sized photographs. The photograph on your ID proof document could be an old one and not visible.

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