Karur Vysya Bank Home Loan

Table of Contents

• Karur Vysya Bank Home Loan Interest Rates
• Eligibility Criteria for KVB Home Loan
• Karur Vysya Bank Home Loan Schemes
• Karur Vysya Bank Home Loan for NRI or PIO
• How to Apply for Karur Vysya Bank Home Loan
• Document Checklist for KVB Home Loan

Introduction

Karur Vysya Bank was founded in 1916 in Karur, Tamilnadu primarily as a conduit to finance traders and agriculturists who abounded in the town. Today it is one of the leading commercial banks in the country with a network of 782 branches spread pan India. It caters to the customers across board with innovative home loans solutions which are integral to their wide array of retail products.

Karur Vysya Bank looks to play its role as an enabler in the realization of your dream of home ownership. The bank has more than hundred years of tradition as legacy to fall back on, yet ready to meet the challenges of modern banking. They have suggestively named their home loan product as Happy Home Loan and it is indeed joy for anyone who longs to own a house.

Through their home loans, Karur Vysya Bank truly highlights the ethos of their approach to the emerging trends by offering:

• Paperless home loan application process.
• In principle approval in just 15 minutes, provided you meet the credit score norms.
• Competitive interest rates.
• Tax benefits under IT Act, 1961.

Karur Vysya Bank Home Loan Interest Rates

Interest rates are as of 2019

The first thing that concerns you as a prospective borrower for the estimated amount of home loan that would help realize your dream. It is the cost of capital and the outgo you will have to factor as interest.

It is pertinent to point out here that, like all banks, Karur Vysya Bank is tied to the MCLR regime of interest rate, which is in turn is dependent on the repo rate of RBI. Needless to say, it is variable. The current bench mark One Year MCLR effective from 7th July 2019 is 9.55% per annum.

See the snapshot of interest and the primary processing charge that will impact the cost of capital.

Eligibility Criteria for KVB Home Loan

The next aspect to consider is the eligibility norm, whether you fit into the scheme of things in Karur Vysya Bank. You have access to different tools like the EMI Calculator and the Eligibility Calculator to aid you in this endeavor. The bank has a vibrant portal for your seamless experience in looking up the parameters.

Karur Vysya Bank Home Loan Schemes

Instead of providing a host of separate schemes, Karur Vysya Bank has clubbed all the possibilities for which a home loan is required into one master scheme called the Happy Home Loan Scheme, which literally transcends happiness to the proud owners of residences, for which they play a small role.

This scheme is specifically designed for resident Indians. For  the NRI segment of their client base, they have a specialized scheme named Gruhapravesh. Having come this far, it is time to consolidate what has so far been learnt and recapitulate the interest scenario in their home loans on offer.

Types of KVB Home Loans

All the credit options in Karur Vysya Bank home loan segment are designated as term loan with the maximum tenor of 25 years. However, they do not have a number of schemes for different purposes it is meant to serve; rather they have only one comprehensive home loan covering for all the emergent needs of the prospective home loan buyer.

Main Home Loan of KVB: The master home loan has been suggestively named as the Happy Home Loan. It is time recapitulate the salient points of this loan which makes it a popular choice.

• It has a long tenure of 25 years.
• There are no prepayment charges.
• The processing charges are fixed as per rates described earlier.
• The rate of interest is Floating based on the 1 Year MCLR benchmark and varies from 9.65% to 11.65% depending  on the quantum of loan and the purpose for which it has been availed.
• The primary security is the equitable mortgage of the property constructed or acquired out of the home loan.
• The margin is 10% to 30% depending on the amount and purpose of loan.

Karur Vysya Bank Home Loan for NRI or PIO

This segment of KVB client base is important to them. Among the host of options for the NRI to bank with KVB, they also provide a specialized home loan called KVB Gruhapravesh.

The NRI, by its own description earns his income in hard currency and gets higher value for it through conversion. Most of them consider home ownership as a means of investment for the impressive returns a home property gives.

The other reason for the NRI to go in for home ownership is to provide for their aging parents or keeping the property for use in their twilight years after retirement.

However, NRIs need to comply with the rules of RBI which restricts their investment to residential properties only and they cannot invest or own agricultural land and plantations. On top of this, they also need to comply with the FERA regulations for their foreign exchange dealings.

Housing Loan for High-Net-Worth Individuals

It is a paradox that one does not have a definitive measure for High-net-worth Individuals. It varies from country to country and a person who is deemed to belong to this class is based on the economic status in the country of origin and their per capita income.

In the absence of a definite yardstick to determine a high-net-worth individual per se, the prudent course would be to go literally. It could be safely assumed that the description best fits the person with ample liquid assets as compared to his liabilities, thus rendering him to be wooed by most lenders as a VIP customer subject to certain norms like a minimum deposit base or a turnover in the account.

A person in this class can have multiple benefits for KVB in the credit portfolio. Firstly the proposals are likely to be high cost ones. And the tenor and quality of repayment would be seamless. This twofold benefit is enough for a high-net-worth individual to seek their home loan.

In spite of all the advantages, Karur Vysya Bank does not provide for any Premier Services for HNWIs.

Loan amount permitted under this scheme at KVB

The loan amount designated for the home loan scheme is based on eligibility and no quantum is quoted. It is subject to meeting KVB norms and satisfying the needs through a supporting credit score from a reputed credit rating agency like CIBIL.

KVB Home Loan for NRI

By now you are aware that there is a specialized scheme exclusively meant for the NRI and PIO. Before proceeding further gain an insight into the meaning of the two terms.

• NRI: An Indian citizen residing in a foreign country for reasons of employment, vocation or any other compelling reason for an uncertain period of time.
• PIO: It is literally a person of Indian origin who currently holds passport of a foreign country barring countries in our vicinity like Pakistan, Bangladesh, China, Nepal, Sri Lanka, Afghanistan and Bhutan.

It obviously means that the ancestors of such person held Indian citizenship or passport at one time.

The salient features of the scheme are:

How to Apply for Karur Vysya Bank Home Loan

Karur Vysya Bank has a wide network of more than 600 branches pan India to welcome you with home loan application. You can apply online at their portal with the basic details evincing your expression of interest authorizing their representative to get in touch with you. It is their endeavor to make your application process hassle free in the following steps.

Step I: Submission of completed application form in all respects along with the documents sought.

Step II: Evaluation of the eligibility and income parameters to match KVB stipulated norms.

Step III: Vetting of the property and legal documents.

Step IV: Sanction and signing of the stipulated documents.

Step V: Disbursal of the loan on submission of proof for use of the requisite margin money.

Housing.com can be your one stop shop for home loan products.

Document Checklist for KVB Home Loan