Karnataka Bank Home Loan Interest Rate April 2023
Karnataka Bank home loan interest rate starts at 9.26% p.a. The bank offers an array of home loan schemes including KBL Xpress Home Loan (Apna Ghar), KBL Xpress Home Comfort and KBL Xpress Ghar Niveshan. The repayment tenure is up to 30 years. Karnataka Bank home loan processing fee is 0.25% of loan amount, maximum of ₹25,000 (inclusive of upfront fee and taxes) For renovation/repair, a housing loan from Karnataka Bank comes with a maximum tenure of 7 years.
Karnataka Bank Home Loan Interest Rates 2023 Highlights
Check the details of Karnataka Bank home loan interest rates in 2023:
| Different Home Loan Schemes | Interest Rates |
| KBL Apna Ghar (Finance for Renovating or Purchasing a House) | 9.26% to 10.53% p.a. |
| KBL – Home Comfort (Finance for furnishing house) | 10.85% to 11.25% p.a. |
| KBL – Ghar Niveshan (Loan for purchasing a residential/house site) | 12.64% to 13.77% p.a. |
| KBL Home Top Up (Loan for fulfilling personal requirements) | 10.85% to 11.25% p.a. |
Karnataka Bank Home Loan Interest Rate Calculator
You can calculate your home loan EMI in advance to determine whether you can afford to take the loan amount you wish for. Calculating home loan EMIs may also help you come up with an effective repayment schedule.
To get an accurate estimate and to avoid the hassles of manual calculations, use a home loan EMI calculator for Karnataka Bank housing loans.
Calculate Your Union Bank Home Loan EMI
Loan Amount
Rate of Interest (P.a)
%
Loan Tenure (Years)
Years
Monthly EMI
0
Total Interest
Total Amount
The Karnataka Bank home loan EMI calculator is extremely easy to use. All you need to do is select the loan amount, interest rate and the loan tenure. The calculator will display accurate results within seconds. In addition, it will also display the home loan amortisation schedule.
For instance, suppose you have applied for a home loan of ₹1 crore. The interest rate is 9.15% p.a. and the tenure is of 20 years. In this case, the monthly EMI is ₹90,940. The total interest amount that you have to pay is ₹1,18,25,493 and the total repayment amount is ₹2,18,25,493.
Factors that Can Affect Karnataka Bank Home Loan Interest Rates 2023
Here are some factors that may affect Karnataka Bank housing loan interest rates:
1. Interest Rate Benchmark
At Karnataka Bank, the interest rates are determined by two interest rate benchmarks:
- Interest rates for loans below ₹500 lakh are linked to the External Benchmark based Lending Rate (EBLR). But, MSME loans are not included. The External Benchmark based Lending Rates are as follows:
| Type of External Benchmark | Revised Rate (%) |
| 10 Years G-Sec rate | 7.36% |
| 6 Months T-Bill rate | 6.96% |
- The interest rates of Karnataka Bank home loans are also determined by the Marginal Cost of Lending Rate (MCLR) which is a benchmark lending rate for floating-rate loans. In other words, it is the minimum interest rate at which commercial banks can lend. MCLR is determined by four components and they are the marginal cost of funds, tenure premium, operating costs and the negative carry with respect to the cash reserve ratio (CRR).
The current MCLR rates at Karnataka Bank are as follows:
| Type of MCLR | Rate (%) |
| One Year MCLR | 9.70% |
| Six Months MCLR | 9.40% |
| Three Months MCLR | 9.25% |
| One Month MCLR | 9.05% |
| Overnight MCLR | 8.95% |
2. Loan-to-Value (LTV) Ratio
Financial institutions use Loan-to-Value (LTV) ratio to evaluate the risks associated with a particular loan opportunity. In other words, it helps lenders determine how much of the total property value they should disburse as a loan amount. While a low LTV would translate to quick approvals for home loan applications, a loan with a higher LTV is considered to be risky.
The Reserve Bank of India (RBI) which is the central banking authority in the country provides the guidelines for the maximum LTV depending on the loan amount. Karnataka Bank abides by the following LTV ratios while deciding on the loan amount:
| Loan Amount | Maximum Permissible LTV Ratio (%) |
| Up to ₹30 lakh | 90% |
| Above ₹30 lakh & up to ₹75 lakh | 80% |
| Above ₹75 lakh | 75% |
3. CIBIL Score
Your CIBIL score or credit score determines your creditworthiness. A low CIBIL score increase could call for higher interest rates, similarly a higher credit score may fetch you excellent deals on your home loan. Usually, lenders prefer a CIBIL score of 750 and above. Interest rates offered by Karnataka Bank may vary based on your credit score.
4. Loan Amount
Lower loan amounts are more likely to get sanctioned by lenders than higher amounts, that too at favourable interest rates. For instance, your home loan application for an amount of ₹50 lakh is more likely to get sanctioned than an application for ₹4 crore.
5. Property Location
Loan eligibility and interest rates are also influenced by the location of a residential property. For instance, if you fulfil the eligibility criteria of the lender and if the property is located in a metropolitan city, you may receive approval for a higher loan amount at favourable interest rates.
6. Income
Your income plays a very important role in determining whether you are eligible to receive a certain amount of home loan. If you have multiple earning members in your family, your income will increase. If you mention a higher income in your loan application, it will open up the possibility of getting a higher loan amount sanctioned at low-interest rates.
Also Read
Karnataka Bank Home Loan Interest Rates for NRIs
Karnataka Bank offers home loans at attractive interest rates for NRIs. People can opt for KBL Xpress Home Loan or KBL Xpress Ghar Niveshan. They can also apply for a loan for furnishing their homes. Given below are the details of Karnataka Bank home loans for NRIs:
| Type of Resident | Non-Resident Indians with an Indian passport |
| Minimum Age | 18 Years 21 Years (For KBL Ghar Niveshan) |
| Loan Tenure | Maximum 7 years for repair/renovation and 30 years for constructing a home (KBL Home Loan) Maximum 84 months (for KBL Ghar Niveshan)*Maximum 120 months (KBL Home Comfort) |
| Interest Rates | 9.26% to 13.77% |
| Other Benefits | Simple and hassle-free procedureQuick approval/sanction Digital processing Instant approval and disbursal |
Karnataka Bank Home Loan Interest Rates for Salaried
There are three home loan schemes for salaried individuals—KBL Apna Ghar, KBL Ghar Niveshan and KBL Home Comfort. While KBL Apna Ghar allows salaried individuals to purchase or renovate a house, KBL Ghar Niveshan helps people to pay for the site where they want to build their houses. KBL Home Comfort is more like a home improvement/renovation loan which can be used to refurbish an existing house.
The tables below will illustrate the important features of these home loan schemes for salaried people:
1. KBL Apna Ghar
| Minimum Monthly Salary | ₹10,000 |
| Purpose of Loan | Purchase/construction of house/flat |
| Loan Amount | Maximum ₹500 lakh for purchase/construction Maximum ₹30 lakh for remodelling/renovation/repair/extension |
| Amount of Finance | Salaried people will get 60 times their latest monthly net salary |
| Tenure | Up to 30 years (for repairs and renovation – 7 years) |
2. KBL Ghar Niveshan
| Minimum Monthly Salary | ₹10,000 |
| Purpose of Loan | Purchase of house site |
| Loan Amount | Maximum ₹75 lakh for plots located in metropolitan and other urban areas Maximum ₹50 lakh for plots located in areas other than urban areas |
| Amount of Finance | 80% of the registration value of the site |
3. KBL Home Comfort
| Minimum Monthly Salary | ₹10,000 |
| Purpose of Loan | Furnishing, interior designing, solar heating/lighting and acquiring furniture/fixtures |
| Loan Amount | ₹100 Lakh |
| Amount of Finance | Maximum 75% of the estimated cost of assets |
Karnataka Bank Home Loan Interest Rates for Self-Employed
Self-employed people below 70 years of age can avail home loans under the KBL Apna Ghar, KBL Ghar Niveshan and KBL Home Comfort schemes. Any self-employed person is eligible to avail loans under KBL Home Comfort if they have already taken any of these two loans, or if they don’t have any outstanding loans in any other financial institution.
The following three tables provide the details of the loan schemes available for self-employed people:
1. KBL Apna Ghar
| Minimum Annual Gross Income | ₹1,20,000 |
| Purpose of Loan | Purchase/construction of house/flat |
| Maximum Loan Amount | Maximum ₹500 lakh for purchase/construction Maximum ₹30 lakh for remodelling/renovation/repair/extension |
| Amount of Finance | Salaried people will get 60 times their latest monthly net salary |
2. KBL Ghar Niveshan
| Minimum Gross Monthly Income | ₹1,20,000 |
| Purpose of Loan | Purchase of house site |
| Maximum Loan Amount | Maximum ₹75 lakh for plots located in metropolitan areas Maximum ₹50 lakh for plots located in areas other than metro areas |
| Amount of Finance | 80% of the registration value of the site. |
3. KBL Home Comfort
| Minimum Gross Monthly Income | ₹1,20,000 |
| Purpose of Loan | Furnishing, interior designing, solar heating/lighting and acquiring furniture/fixtures |
| Loan Amount | ₹100 lakh |
| Amount of Finance | Maximum 75% of the estimated cost of assets |
Karnataka Bank Home Loan Interest Rate in Comparison With Other Banks
Let us check the home loan interest rates of various commercial banks:
| Bank Name | Home Loan Interest Rate |
| Karnataka Bank | 9.26% to 13.77% p.a. |
| State Bank of India | 9.15% to 10.15% |
| Punjab National Bank | 8.60% to 9.95% p.a. |
| Bank of Baroda | 9.15% to 11.10% p.a. |
| HDFC | 8.50% to 9.60% p.a. |
| ICICI Bank | 9.00% to 10.05% p.a. |
| Kotak Mahindra Bank | 8.85% p.a. onwards |
| Canara Bank | 8.85% to 11.25% p.a. |
| Union Bank of India | 9.00% to 11.45% p.a. |
| Axis Bank | 8.75% to 14% p.a. |
| Bandhan Bank | 9.15% to 15.00% p.a. |
Features and Benefits of Karnataka Bank Home Loan
Let’s take a look at the features and benefits of Karnataka Bank housing loans:
1. Different Types of Home Loans
You can get a loan for constructing/purchasing, or refurbishing your home. If you wish to purchase a site for constructing a property, there is a financing option for that as well.
2. Attractive Interest Rates
You can apply for a Karnataka Bank home loan at interest rates starting from 9.26% p.a.
3. Easy Procedure
The procedure to apply for a loan is simple, easy and entirely hassle-free. Quick sanction of the required loan amount is a convenient benefit.
Different Types of Home Loans Offered by Karnataka Bank
Check the different types of home loans offered by Karnataka Bank:
1. KBL-Apna Ghar
- Type of Applicant: Resident Indians, NRIs, salaried/self-employed
- Minimum Age: 18 years
- Loan Tenure: Maximum 30 years for house construction and 7 years for house repair or renovation
- Loan Amount: Maximum ₹500 lakh for purchasing/constructing house; maximum ₹30 lakh for house renovation/repair/extension/remodelling
- Interest Rate: 9.26% to 10.53%
2. KBL-Ghar Niveshan
- Type of Applicant: Indian residents, NRIs, salaried and self-employed
- Minimum Age: 21 years
- Loan Tenure: Up to 84 months
- Loan Amount: Maximum ₹75 lakh for land located in metro/urban areas; Maximum ₹50 lakh for land located in non-urban areas
- Interest Rate: 12.64% to 13.77%
3. KBL-Home Comfort
- Type of Applicant: Resident of India, NRIs, salaried/self-employed who have availed home loans under KBL Apna Ghar and KBL Ghar Niveshan. In case they have taken home loans from other financial institutions, they must close them before applying with Karnataka Bank.
- Minimum Age: 18 years to 21 years
- Loan Tenure: Up to 120 months
- Loan Amount: Up to ₹100 lakh
- Interest Rate: 10.85% to 11.25%
Karnataka Bank Home Loan Eligibility
- Resident: Indian Residents and NRIs
- Age: 18 years to 70 years
- Loan Amount: Depends on the loan type and eligibility
- Type of Occupation: Salaried or self-employed
- Income: Depends on the loan type and eligibility
Karnataka Bank Home Loan Charges
1. Processing Charges
The processing charges for KBL Ghar Niveshan, KBL Home Comfort and KBL Home Top Up is 0.25% of the total loan amount. The processing charges will be NIL for KBL Xpress Home Loan if the amount is equal to or below ₹75 lakh. The upfront fee will be ₹12,000 including taxes.
If the loan amount is above ₹75 lakh, the processing charges will be 0.25% of the loan amount. But, Karnataka Bank has specified that the maximum amount will be ₹25,000 inclusive of upfront fees and taxes.
2. Switching Charges
No charges are levied on switching loans from base rate to MCLR if the loan amount is up to ₹5 lakh. For loans of above ₹5 lakh and up to ₹1 crore, 0.1% of the principal amount + undisbursed amount (min- ₹500) is charged as a switching fee. The maximum switching fee applicable for Karnataka Bank housing loans is ₹25,000.
3. Foreclosure Charges
Karnataka Bank levies a foreclosure charge of 2% of the outstanding balance on home loans with fixed interest rates. As per RBI guidelines, no foreclosure charge is applicable on home loans with floating interest rates.
Also Read
Documents Required for Home Loan Eligibility
Keep the following documents at hand while applying for a home loan with Karnataka Bank:
1. Proof of Identity
- PAN card
- Aadhaar card
- Voter ID card
- Passport
- Driving licence
2. Proof of Age
- PAN card
- Aadhaar card
- Birth certificate
- Passport
- Class 10 marksheet
- Bank passbook
- Driving licence
3. Proof of Residence
- Bank passbook
- Ration card
- Voter ID card
- Passport
- LIC policy report
- Utility bills (telephone/electricity/gas/water)
- Letter from an established public authority verifying the customer’s address
4. Income Documents for Salaried Individuals
- Certified letter from the employer
- Form 16
- Increment or promotion letter
- Salary slip of previous 2 months
- IT Returns of previous 3 years
- Proof of investment (if any) such as fixed deposits, shares etc.
5. Income Documents for Self-employed Individuals
- IT Returns for the previous 3 years
- Business licence details (or other equivalent documents)
- Balance sheet
- Profit and loss and account statement of the company/firm (duly attested by a Chartered Accountant)
- Licence for professional practice (for consultants and doctors)
- Proof of business address
- Registration certificate of the establishment (for shops, factories and other establishments)
6. Property Documents
- No Objection Certificate (NOC) from builder/society
- A detailed estimate of the cost of construction of the property
- Certificate of occupancy (for ready-to-move properties)
- Allotment letter/registered sale deed/stamped agreement of sale with the builder (original document)
- Property tax receipts
Tips to Get Karnataka Bank Home Loan at Lower Interest Rates
Check the following tips to get a home loan at lower interest rates from Karnataka Bank:
1. Improve your Credit Report
When you apply for a home loan, the bank will check your credit report to determine your creditworthiness. If you have a low credit score, try to improve it before applying for a loan. Check whether there are any inaccuracies in your credit report and update it. Clear your debts and pay your bills on time. These actions will improve your credit score considerably.
2. Increase the Down Payment
Banks provide a certain percentage of the total property value as the loan amount. The applicant has to pay the remaining amount out of their pocket. So, if you wish to avail a home loan at low-interest rates, increase the down payment. It will bring down the risks for the lender, and thus, decrease the interest rates as well.
3. Apply for a Joint Home Loan
If you have a low credit score, you can make a joint home loan application. But, make sure your co-applicant’s credit score is higher and he/she has a stable source of income. Both these factors will improve your chances of getting a home loan at favourable terms and conditions. This is because the lender knows that it can recover the amount from the other applicant if one person fails to repay.
Final Word
Compare Karnataka Bank home loan interest rates and fees and charges with other lenders before taking a decision. Evaluate your financial standing before applying for a loan. You can use a home loan EMI calculator to check your repayment obligations.
Looking for instant approval on a home loan? Apply with Navi Home Loan and get instant approval along with a sanction letter within minutes. Get up to 90% financing of the property value at competitive rates. Download the Navi app and apply today!
FAQs
Usually, banks provide financing for only around 75% to 85% of the total property value. The applicant has to pay the remaining amount and this is commonly referred to as the down payment.
The tenure for Karnataka Bank ranges from 1 year to 30 years. You can avail home loans at attractive interest rates with flexible repayment tenures from Karnataka Bank.
The applicant should either be a resident of India or a non-resident Indian holding an Indian passport. The minimum age limit is 18 years. Salaried applicants who are Indian residents must have a minimum monthly salary of ₹10,000 to be eligible for this home loan. Self-employed Indian residents should have a gross income of at least ₹1,20,000.
If you have a low credit score, there is no need to worry because it can always be improved. You can start by paying off your bills in time and clearing your outstanding dues. Over time, it will improve your credit score considerably.
Checking your credit score for a home loan is quite easy. You can connect with your bank to know the score. Another way to check your credit score for a home loan is to visit the credit bureau’s official website.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
