About Karur Vysya Bank Loan Against Property
Karur Vysya Bank Loan Against Property is a highly beneficial and much appreciated product in the segment. This facility takes care of the growing and diversifying personal and business financial needs of the customers. What makes this credit facility unique is the fact that its features are second to none! The Loan Against Property provided by Karur Vysya Bank can be availed both as a term loan and as an overdraft facility. Also, this credit facility is only available for the resident applicants of India. Another fact that makes this credit facility stand out is that it can be sued for multiple purposes such as for personal consumption, health expenses, business expenditure, education expenses and the likes. Read on to know more about the features of this product that make it distinctive and lucrative!
Karur Vysya Bank Loan Against Property Details:
|Interest Rates||10.00% - 13.00%|
|Loan Amount||₹ 10,00,000|
|Processing Fees||0.50% of the loan amount|
|Foreclosure Charges||2.00% on the amount pre paid|
Eligibility Criteria for Karur Vysya Bank Loan Against Property
- Age Limit- The applicant must be older than 21 years to be able to apply for Karur Vysya LAP. Also, the maximum age until the loan completion is 60 years.
- Professional Experience- The applicant must be professionally associated with an organization for a minimum period of 2 years. In case of an applicant who is self-employed, the minimum period of business continuity is 2 years.
- Monthly Income- Minimum take home income of ₹ 15,000/- per month
- Co-applicants- Co-applicant applicable in case of LAP, Spouse/Parents/Children
Karur Vysya Bank Loan Against Property Eligibility
Karur Vysya Bank Loan Against Property Eligibility is the financial eligibility and capacity of the applicant that is judged by the bank under certain criteria. In order to avail a loan, it is very important for the applicant to be financial sturdy and have savings to be able to bear the EMIs responsibily. Also, the banks usually look for applicant that bear a good financial history to prove their responsibility towards the credit.
Now, let us understand the loan amount eligibility with the help of an example below.
Let’s assume that you work in a renowned company and earning an attractive salary of ₹ 1,00,000 monthly. So, after deducting all your necessary monthly expenses, you would be saving around 40%-50% of your income each month. Let’s say, if you are able to save around 50% of your monthly income, you might be interested to know your eligibility for LAP.
However, if Karur Vysya assumes that you save around₹ 50,000 per month out of your monthly income of ₹ 1,00,000. So, your savings can be used to repay the EMIs of this loan. So, now, if you calculate your amount, tenure and rate of interest, you will get to know your EMIs that you will have to pay every month so as to repay the loan amount that you are eligible for.
Amount- ₹ 1 Lakh
Loan Tenure- 8 years
Rate of Interest- 11.50% p.a.
Your monthly EMI will be ₹ 1,066
So your calculation for LAP would be
₹ 1 Lakh x 50000/1066 = ₹ 47 Lakhs approx
So, your loan amount eligibility is ₹ 47 Lakhs approx.
Karur Vysya Bank Loan Against Property EMI Calculator
When it comes to EMI, it is nothing, but the sum of the interest and principal which is payable each month on LAP. So, now you must be wondering how this bank is going to calculate your EMI for this loan. Well, calculating the monthly installments manually can be very cumbersome and complicated procedure due to the formula that is used for such derivation. However, the value of your EMI gets calculated in a comparatively easier and simpler manner. By making the use of an EMI Calculator, we can easily escape all those lengthy calculations and wastage of time. The EMI Calculator takes into account your loan amount, interest rate and tenure of the loan in order to calculate your monthly installments.
Moreover, firstly the calculator will compute the interest component and then the principal amount that you will have to pay towards your loan.
For Example: If you are interested in availing a loan of ₹ 10,00,000 from Karur Vysya for 8 years at an interest rate of 11.50% p.a., then you must be wondering about the EMI, total interest outgo and total amount payable from your pocket will be ₹ 15,979, ₹ 5,34,020, and ₹ 15,34,020 at the end of your loan tenure.
In fact, for your reference, there is a table below where you can gauge your monthly EMIs, interest and total amount payable on the same amount of loan over different tenure periods.
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 11.50% 1 ₹ 88,615 ₹ 63,381 ₹ 10,63,381 ₹ 10,00,000 11.50% 2 ₹ 46,840 ₹ 1,24,168 ₹ 11,24,168 ₹ 10,00,000 11.50% 3 ₹ 32,976 ₹ 1,87,136 ₹ 11,87,136 ₹ 10,00,000 11.50% 4 ₹ 26,089 ₹ 2,52,272 ₹ 12,52,272 ₹ 10,00,000 11.50% 5 ₹ 21,993 ₹ 3,19,556 ₹ 13,19,556 ₹ 10,00,000 11.50% 6 ₹ 19,291 ₹ 3,88,963 ₹ 13,88,963 ₹ 10,00,000 11.50% 7 ₹ 17,386 ₹ 4,60,463 ₹ 14,60,463 ₹ 10,00,000 11.50% 8 ₹ 15,979 ₹ 5,34,020 ₹ 15,34,020 Year Principal Interest Balance Amount 1 ₹ 80,930 ₹ 1,10,822 ₹ 9,19,069 2 ₹ 90,743 ₹ 1,01,009 ₹ 8,28,326 3 ₹ 1,01,747 ₹ 90,005 ₹ 7,26,579 4 ₹ 1,14,084 ₹ 77,668 ₹ 6,12,494 5 ₹ 1,27,918 ₹ 63,834 ₹ 4,84,575 6 ₹ 1,43,430 ₹ 48,322 ₹ 3,41,145 7 ₹ 1,60,822 ₹ 30,930 ₹ 1,80,323 8 ₹ 1,80,475 ₹ 11,429 ₹ 0
Table Showing EMI, Interest Outgo, and Total Repayment Amount
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
Documentation Required for Karur Vysya Bank Loan Against Property
- Salaried Professionals: Payslip for the last 3 years, Salary Account Bank Statement for the last 6 months and Latest Form 16.
- Self-employed Individuals: ITR for the last 2 years, Financial Documents including P & L account, Balance Sheet, Schedules to Balance Sheet & Tax Audit report and statement for the last 6 months of the Company’s Primary Current Account.
- Current obligations such as other installments (EMIs) and credentials of credit cards and credit limits in use.
- Pan Card, Driving License, Adhaar card, Voter’s ID and Passport size photographs
Proof of Employment/Business Continuity
- Salaried: Form 16 or Appointment letter, dated not more than 2 years
- Self-employed: ITR or Sales/Service Tax registration certificate, dated not more than 2 years
Property Documents (In case of LAP)
- For Under construction property – Allotment letter, Proof of payment of booking amount and Proof of Payment Schedule
- For Ready-to-Use Property – Sale Deed, Parent Documents, latest Certificate of Property tax payment, Khatha (7/11 extract) and Latest EC
- For Plot & Self-construction – Sale Deed, Parent Documents, Khatha (7/11 extract) and Latest EC
Features & Benefits of Karur Vysya Bank Loan Against Property
- Maximum Loan amount
- Convenient loan repayment options
- Both residential and commercial property accepted as collateral
- Minimal documentation and faster approvals
- Attractive interest rates