Karur Vysya Bank was started in the years 1916. The bank has a lot of innovative products to offer to their customers. Mortgage loan is one such product to cater to the persona and business needs.
Karur Vysya Bank Mortgage loan is provided to the bank’s customers in the form of Term loan and as an overdraft facility. People in India first try to safeguard their financial future by buying a property first so that they know whatever happens, they have a property that can possibly bail them out at the time of need. Having a property also allows a person to take mortgage against the property and make the most of the idle property.
Purpose of Karur Vysya Bank (KVB) Mortgage Loan
Karur Vysya Bank offers a mortgage loan to cater to the growing needs of a person’s personal or business needs.
Eligibility Criteria for Karur Vysya Bank Mortgage Loan
Individuals who wish to obtain a Karur Vysya Bank Mortgage Loan need to satisfy the following criteria:
- The loan is available only for resident individuals of India.
- The loan is granted for personal purpose, consumption, education, health, business etc. other than speculative purposes.
- The applicant must own the property. If the property is jointly owned, then the title owner must join as co-applicant.
- Eligibility is based on the person’s last 3 years average income as declared in ITR.
- Minimum income must be Rs.15,000.
- The borrower must take an underwriting that the loan is not for speculative purposes.
Note: The criteria is subject to change at the sole discretion of Karur Vysya Bank.
Documents Required for Karur Vysya Bank Mortgage Loan
A borrower is required to furnish the following documents before availing a loan:
- Application form duly filled.
- Identity proof it can be either passport, PAN card, employee identity card or other valid proof.
- Address proof that can be either electricity bill, telephone bill, ration card or other valid proof.
- Property papers that is the ownership proof and title deed.
- 3 passport sized photographs.
- Any other required documents as expressed in the application form must be submitted.
Features and Benefits of Karur Vysya Bank Mortgage Loan
Some of the salient features and benefits of Karur Vysya Bank Mortgage loan are:
- The loan requires minimum documentation and is processed very quickly.
- Competitive interest rate is offered by Karur Vysya Bank.
- The property lying idle can now be used to avail funds.
- Residential and commercial building are accepted as security.
- Minimum loan amount offered is Rs.10 lakh.
- The margin is set at 40% of the property value.
- The maximum repayment tenure offered is 100 months for term loans and 96 months for overdraft limit. The drawing power reduces based on the repayment tenure.
- Collateral security in the form on deposits, NSCs, life insurance policies, third party guarantees is to be provided in the event primary security is inadequate.
- Agricultural properties, factories, go downs, cinema halls, schools, restaurants, etc. is not accepted as securities.
- Guarantee is optional and a suitable guarantor having sufficient net worth is accepted.
- The processing charges are 0.50% of the loan amount.
- If you are foreclosing the loan, then 2% of the amount pre-paid has to be paid toward the prepayment charges.
Karur Vysya Bank Mortgage Loan Interest Rate
Karur Vysya Bank charges an attractive interest on their mortgage loan. The bank ensures that repaying the loan doesn’t become an additional financial burden on the borrower. The interest rate offered is:
- 12.90% for individuals.
- The minimum rate of interest is 12.75%
- Maximum rate of interest is 13.25%
- Average rate of interest is 13.25%
Note – Interest rates charged by Karur Vysya Bank are at their sole discretion and are subject to change without prior intimation.