Karnataka Bank Home Loan

Note: Interest rates as of 18 August 2025

Karnataka Bank Home Loan Interest Rates

Karnataka Bank home loan interest rates start from 8.19% p.a. However, the rate of interest at which Karnataka Bank will approve the home loan will depend on various parameters such as credit score, loan amount, type of employment, etc.

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Karnataka Bank Home Loan Processing Fees & Other Charges

*exposure = principal outstanding + undisbursed amount
** EMI Bounce Charges are in addition to the penal interest being charged for delayed payment

Also Check: Home loan processing fees charged by other home loan lenders

Types of Karnataka Bank Home Loan

1. KBL – Xpress Home Loan

• Individuals can avail this home loan for construction and purchase of a new house. KBL Xpress Home Loan can be also availed by those seeking loans for house renovation/improvement, repair and remodelling purposes.
• The loan amount is up to Rs. 5 Crore for purchase/construction and Up to Rs. 30 lakh for renovation/ remodelling/ extension/ repair
• Loan tenure for loans taken for construction is of up to 30 years
• Loan tenure for loans taken for house renovation/repair is 7 years
• Individuals can apply for this loan through digital mode and get instant in-principle sanction

2. KBL – Xpress Home Comfort

• This home loan scheme can be availed for furnishing house interior works, acquiring furniture-fixtures and solar heating/lighting systems
• This loan is for all those who have already availed loan under KBL (Apna Ghar/Elite/KBL XPRESS HOME Loan scheme) and have not availed any loan from any financial institution for their Residential property/ closed the housing loan already availed
• The loan amount can go up to Rs. 1 crore subject to 75% of the estimated cost of assets to be purchased/works to be carried out
• Loan tenure can go up to 20 years

3. KBL – Xpress Ghar Nivesh

• Individuals can avail this home loan for plot purchase and construction thereon
• The loan amount is up to 80% of the registration value of the plot site, subject to multiple factors such as the property’s location
• Loan tenure can go up to 7 years

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Karnataka Bank Home Loan Eligibility Criteria

• The applicant should be either a residents of India or an NRI holding an Indian passport
• The age of the applicant should at least be 18 years
• Income:
  • Resident Indian:
    • Salaried Persons: Minimum gross monthly salary Rs. 10,000
    • Agriculturist: Minimum Annual net income Rs. 1,20,000
    • Business Men/Professionals/Self Employed: Minimum Annual gross income Rs. 1,20,000
  • Non Resident Indians (NRIs):
    • Salaried Person: Minimum gross monthly salary Rs. 40,000
    • Business Men/Professionals/Self Employed: Minimum Annual gross income of Rs. 4,80,000 (NRI applications processed manually)

In addition to the above-mentioned eligibility factors, Karnataka Bank may also consider applicants’ credit score, EMI/NMI ratio, property features & its location while evaluating their home loan eligibility, just like most lenders do to evaluate their applicants’ home loan eligibility.

Tips to Increase Karnataka Bank Home Loan Eligibility

Some of the ways to improve your eligibility for Karnataka Bank Home Loan eligibility are:

• Add a co-applicant – Adding a co-applicant increase your total income, resulting in higher repayment capacity; thus, increasing your home loan eligibility.
• Apply for joint home loan – By applying for joint home loan, you can reduce the repayment burden and also get tax benefits individually.
• Improve your credit score – Your credit score and credit history reflect your creditability. The closer it is to 900, the better it is. A good credit score shows you have responsibly dealt with your debt. Having a higher credit score can also help you avail home loan from top lenders at lower interest rates. If you are new to credit or have low credit score, you can improve or build it by availing lifetime free Step UP Credit Card, which is a secured credit card issued by SBM Bank (India) Ltd. with Paisabazaar as co-branded partner. To understand how Step UP Credit Card can help you in building or improving your credit score, click here.

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Karnataka Bank Home Loan Documents Required

When applying for Karnataka Bank Home Loan, you are required to provide a set of documents to support your home loan application. Some of the documents that the bank might request are:

• Duly filled and signed Karnataka Bank Home Loan Application Form.
• A cheque to pay processing fee favouring Karnataka Bank
• Proof of identity – A copy of any one proof of identity documents which includes Aadhaar, PAN, Passport, Voter ID, Driving License, etc.
• Proof of residence – A copy of any one of the proofs of residence documents which includes Aadhaar, Passport, Voter ID, Driving License, etc.
• Proof of income – A copy of the following documents:
  
  • For Salaried
    • Salary Slips
    • Bank Statements, showing salary credits
    • Latest Form-16 and IT returns
  • For Self-Employed
    • Income Tax Returns (ITR) with respect to both the individual and the business entity along with the calculation of income for the past few assessment years.
    • Balance Sheet and Profit & Loss Account Statements with Annexures / Schedules
    • Current Account Statements of the business entity and Savings Account Statements of the individual
• Property documents –
  • A copy of the Allotment Letter / Buyer Agreement
  • Receipt/(s) of payment/(s) made to the developer
  • Title Deeds of the Plot
  • Proof of no encumbrances on the property
  • A copy of the plans, approved by the Local Authorities
  • Construction estimate by an Architect / Civil engineer

Also Read: Home loan documents required by other home loan lenders

Karnataka Bank Home Loan EMI Calculator

FAQs on Karnataka Bank Home Loan

1. Who can be my co-applicant for Karnataka Bank Home Loan?
Ans. Karnataka Bank much like other banks allow close members of the family as co-applicants. It is also compulsory for all co-owners of the property to be home loan co-applicants.

2. Karnataka bank home loan interest rate is linked to which external benchmark?
Ans. With effect from 01.10.2019, Karnataka bank has linked its floating rate home loans to 10-year G-Sec (Government Security) as the external benchmark.

3. Can I prepay my outstanding Karnataka Bank Home Loan?
Ans. Yes, you can partly prepay or foreclose your Karnataka bank home loan before the actual completion of the loan tenure. Karnataka Bank does not levy part prepayment or foreclosure charges on home loans availed at floating interest rates.

4. Can the tenure of my existing Karnataka Bank Home Loan be extended?
Ans. Karnataka Bank is yet to reveal anything on extending the term of an existing home loan. Most banks and HFCs allow their borrowers to extend the term of their existing home loans as long as the revised repayment period remains within the maximum term offered by the lender or the maximum age allowed at the time of loan maturity.

Before extending the loan tenure, borrowers must know that increasing their loan period would lead to reduction in their credit score by a few numbers. The reduced credit score would also reduce your chances of getting a new loan or credit card in future. All of this could happen because the request for tenure extension is considered as loan restructuring, which is seen negatively by credit bureaus. Hence, opting for it would lead credit bureaus to reduce your credit score.

An alternative that would help in reducing borrowers’ loan EMIs without hurting their credit scores is the home loan balance transfer facility. As the name suggests, this loan facility allows home loan borrowers to transfer their outstanding balances to a new lender offering lower home loan rates, leading to lower EMIs and interest cost. Depending on the lender and the determining factors, the balance transfer customers can also be able to choose longer tenures on their home loans.