These KVB Home loans are extended towards resident Indians or HUF’S who wish to purchase a home of their own.
Key Features That Happy Home Loan Offers:
- Karur Vysya Bank offers this loan for construction of houses, or for the purchase of independent houses or even flats. However, the flats to be purchased cannot be older than 15 years.
- The loan can also be availed for purchase of plots and constructions, developed both by private constructors or developed by Government authorities.
- The loan can also be taken for takeovers of loans with other banking and financial institutions.
- The loan can also be availed towards renovation, extension, repairs or improvement to the existing houses owned by the individual.
- The bank offers Home loans up to a maximum amount of Rs.500 lakhs.
- The bank requires a margin of 25% for loans towards the purchase of new houses or flats.
- The bank requires a margin of 30% for loans towards the purchase of old houses or flats, the repayment period of which is up to 15 years.
- The bank requires a margin of 35% for loans towards the purchase of new houses or flats, the repayment period of which is above 15 years. However, based on the applicant's relationship with the bank and his/her credit worthiness, the bank allows some flexibility on the above-mentioned rates at the sole discretion of the sanctioning authority.
- The bank allows a holiday period of 12 months maximum.
- The bank allows repayment (including holiday period) tenure of 25 years. The repayment has to be done through regular EMI’S.
- The applicant has to submit an equitable mortgage of land & building as primary security at the time of applying for KVB Housing loan.
- Generally, a collateral security is not required in this case. However, it’s left to the discretion of the sanctioning authority. The collateral security has to be provided in the form of KVP’S, NSC’S, Bank deposits and land & buildings.
- A guarantor is required for availing home loans with the bank. The guarantor should be of sound credit worthiness in the eyes of the bank and should preferably be the applicant’s relative.
- This loan also provides for the borrower’s insurance coverage with SBI Life, LIC and BSLI amounting to an amount equivalent to the loan amount. However, taking the same is not compulsory. An applicant, if, interested can avail this facility by paying a single premium.
- The bank charges processing fee at the time of loan application, depending upon the amount of loan applied for. These charges are exclusive of service tax. Service taxes and other surcharges, as applicable will be levied above the below-mentioned charges.
- In case of loans, amounting up to 25 lakhs, a processing fee of Rs.7500+S.T will be charged
- For loans lying between 25 lakhs to 50 lakhs, a processing fee of Rs.15000+S.T will be charged
- For loans above Rs.50 lakhs, a processing fee of Rs.25000+S.T will be charged.
The applicant before they apply for a KVB home loan should keep the following points in mind:
- If the applicant is a salaried professional, he/she is required to submit a salary certificate for the last six months along with a certificate issued by the applicant’s employer.
- If the applicant is a self-employed professional, then he/she has to submit his latest ITR/Income statement certified by a CA professional.
- The net pay of the applicant after the deduction of the desired home loan should stand at a minimum of 40% of the applicant’s gross pay.
- An agriculturist with a proper IT return document or proof of income may also apply for this loan.
- An applicant can also apply for this loan for the purchase of land where construction has not yet begun. However, the applicant must make sure that the construction starts well within six months of the date of disbursement of the above said loan.
- If the borrower wishes to pay off the loan amount in full before the expiry of his/her loan period, he/se can do so without the burden of bearing prepayment charges.