About Karnataka Bank Loan Against Property
Karnataka Bank loan Against Property is a highly beneficial credit facility when it comes to gain funding for meeting your business needs and professional needs. This loan facility can also be used for house repair, home renovation, development of your property and/ or for consumption purposes. The bank also extends this facility for the Non-Resident Indians who possess an Indian Passport. The NRIs can use this facility for any purpose that is permitted under the guidelines of FEMA. Many of us consider buying or investing in a property so that we can use it in case of financial emergencies. Loan Against Property can be availed for such financial needs. Take a look at the benefits that the Karnataka Bank offers for its Loan Against Property.
Loan Against Property
Karnataka Bank Loan Against Property Details:
|Interest Rate||10.80% - 11.75%|
|Loan Amount||Minimum- 3 Lakhs|
Maximum- 5 Crores
|Tenure||Up to 10 years|
|Processing Fee||As per Bank's norms|
|Prepayment Charges||As per Bank's norms|
Eligibility Criteria for Karnataka Bank Loan Against Property
- Indian residents and NRIs holding an Indian Passport
- Minimum 3 years of work experience; in case of self-employed, minimum 3 years of business continuity
- Minimum age of 21 years and maximum age for 60 years (loan completion age)
- Minimum Net Annual Income of the applicant must be ₹ 1.2 Lakh
- Minimum Net Annual Income of an NRI applicant must be ₹ 12 Lakhs
Karnataka Bank Loan Against Property Eligibility
Consider the below given example for getting a clearer picture of the eligibility for loan amount of Karnataka Bank Loan Against Property.
Let us consider, for the sake of assumption, that you make an average earning of ₹ 1,00,000 every month. After the deduction of all your expenses and financial engagements, let us say that you are able to make a saving of about 40% of your income on a monthly basis. In order to avail a LAP, you would want to be aware of the eligibility required for this credit facility and the amount that you can afford to repay that loan in the form of your monthly EMIs.
Now, you would want to check out the key details of your loan such as the monthly EMI and total loan amount inclusive of interest amount that is as per the current bank norms regarding the loan tenure and the interest rates. If you consider paying your saving as your monthly EMI towards your Loan Against Property, then the calculation would be as follows:
Amount- ₹ 1 Lakh
Loan Tenure- 10 years
Rate of Interest- 12% p.a.
Your monthly EMI will be ₹ 1,435
So your calculation for LAP would be
₹ 1 Lakh x 40000/1,435 = ₹ 28 Lakhs approx
Hence, your loan amount eligibility is ₹ 28 Lakhs approx.
Karnataka Bank Loan Against Property EMI Calculator
EMI is the monthly installment that a loan bearer pays off regularly towards the repayment of the loan amount. It is the sum of the amount of principal and interest that is levied on the loan bearer. If done manually, calculation of the monthly EMIs is a very tedious and time-taking task. Hence, using an EMI calculator for such calculations makes it easy to derive the EMI amount and saves a lot of time. The EMI Calculator considers the total loan amount that is availed by the loan bearer, the complete loan tenure and the rate of interest offered by the bank. Using an EMI Calculator can reduce your anxieties and delusions pertaining to the loan. Now, let us consider an example to know how an EMI calculator works and the results it would give when fed with the apt loan details.
For example, let us consider that you want to avail a loan worth ₹ 1,00,000 from Karnataka Bank for a period of 10 years at an interest rate of 12% p.a. The key details that you would want to know before applying for the loan would be regarding the EMI of the loan, total interest amount and the total amount payable from your end. These figures would be ₹ 1,435, ₹ 72,165, and ₹ 1,72,165 at the end of your loan tenure, respectively.
For your reference, take a look at this table given below wherein, you can know your EMI, interest amount and total amount payable on the same amount of loan for different tenures.
Table showing EMI, interest outgo and total amount payable on your loan against property
Table Showing EMI, Interest Outgo, and Total Repayment Amount EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
Loan Amount Interest Rate Tenure Monthly Instalment Total Interest Amount Total Amount ₹ 10,00,000 12% 1 ₹ 88,849 ₹ 66,185 ₹ 10,66,185 ₹ 10,00,000 12% 2 ₹ 47,073 ₹ 1,29,763 ₹ 11,29,763 ₹ 10,00,000 12% 3 ₹ 33,214 ₹ 1,95,715 ₹ 11,95,715 ₹ 10,00,000 12% 4 ₹ 26,334 ₹ 2,64,024 ₹ 12,64,024 ₹ 10,00,000 12% 5 ₹ 22,244 ₹ 3,34,667 ₹ 13,34,667 ₹ 10,00,000 12% 6 ₹ 19,550 ₹ 4,07,614 ₹ 14,07,614 ₹ 10,00,000 12% 7 ₹ 17,653 ₹ 4,82,830 ₹ 14,82,830 ₹ 10,00,000 12% 8 ₹ 16,253 ₹ 5,60,273 ₹ 15,60,273 ₹ 10,00,000 12% 9 ₹ 15,184 ₹ 6,39,897 ₹ 16,39,897 ₹ 10,00,000 12% 10 ₹ 14,347 ₹ 7,21,651 ₹ 17,21,651 Year Principal Interest Balance Amount 1 ₹ 55,132 ₹ 1,17,033 ₹ 9,44,867 2 ₹ 62,124 ₹ 1,10,041 ₹ 8,82,743 3 ₹ 70,003 ₹ 1,02,162 ₹ 8,12,740 4 ₹ 78,881 ₹ 93,284 ₹ 7,33,859 5 ₹ 88,885 ₹ 83,280 ₹ 6,44,974 6 ₹ 1,00,158 ₹ 72,007 ₹ 5,44,816 7 ₹ 1,12,860 ₹ 59,304 ₹ 4,31,955 8 ₹ 1,27,174 ₹ 44,991 ₹ 3,04,780 9 ₹ 1,43,303 ₹ 28,862 ₹ 1,61,477 10 ₹ 1,61,619 ₹ 10,687 ₹ 0
Table Showing EMI, Interest Outgo, and Total Repayment Amount
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
Documentation Required for Karnataka Bank Loan Against Property
- Salaried: Latest 3 years Payslip, 6 months Salary account bank statement &, Latest year Form 16.
- Self-employed: Latest 2 years ITR, Financial Documents (P & L account, Balance Sheet, Schedules to Balance Sheet & Tax Audit report) & 6 months Company Primary Current account statement
- Your current obligations i.e. the other installments (EMIs) you are currently paying, the number of credit cards and credit limits you have or use
- Pan Card, Secondary ID Proof (Driving License, Adhaar Card, Voter’s ID) & Passport size photo
Proof of Employment/Business Continuity
- Salaried: Form 16 or Appointment letter, dated 2 years or earlier period
- Self-employed: ITR or Sales/Service Tax registration certificate, dated 2 years or earlier period
Property Documents (In case of LAP)
- Under construction property – Allotment letter, Proof of booking amount paid and Payment Schedule
- Ready Property – Sale Deed, Parent Documents, Property tax paid certificate (Latest), Khatha (7/11 extract) and Latest EC
- Plot & Self-construction – Sale Deed, Parent Documents, Khatha (7/11 extract) and Latest EC
Features & Benefits of Karnataka Bank Loan Against Property
- Minimum documentation
- Faster loan approval
- Attractive interest rates
- Availability of maximum loan amount
- Acceptance of both residential and commercial property as collateral