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Karnataka Bank Home Loans Rates

Borrowers always prefer attractive home loan rates when it comes to going for a home loan to purchase their dream home. Karnataka Bank home loans rates are one of the finest rates that are available in the Indian home loan market.

About Karnataka Bank Home Loans Rates

The table given below will give you a fair idea about Karnataka Bank home loans rates:

Interest Rates Tied to Prime Lending Rate on Schematic Loans
Serial No. Scheme Details Rate of interest w.e.f 18th Nov 2009
      Upto 30 lakh Over 30 lakh and Upto 50 lakh
1. KBL Apna Ghar Term of loan upto 5 years 8.75% 8.75%
    Term of loan over 5 years up to 15 years 9.50% 9.75%
2. Housing Loan Scheme for Non Resident Indians Period of loan upto 5 years 8.75% 8.75%
    Period of loan over 5 years up to 15 years 9.50% 9.75%


Interest rate on Karnataka Bank home loans is tied to the Prime Lending Rate (PLR) and any adjustment in Prime Lending Rate will result in adjustment of interest rates on the loan as well. Rates of interest on home loan account will rise/fall with the rise/fall of Prime Lending Rate, accordingly.

How much time will it take for processing and approval of KBL home loans?



Local credit home loan applications will be processed within 15 working days if approval is at a branch level. Home loan applications will be processed within 45 working days if approval is at Head Office (HO) level and within 30 working days if approval is at Regional Office (RO) level following acknowledgment of all necessary details from the loan applicant.

Closure/pre-payment of loan account

Closure facilities and prepayment facilities of loan account are available to the borrowers. Prepayment penalties will be imposed at rates as determined by Karnataka Bank Limited on a periodical basis.

Consequence of missed payments/installments:

Missed or non-payment of installments according to accepted terms and conditions will negatively impact credit history and credit rating of the borrower in addition to drawing penal interest.

Situations where the bank has the right to revoke the entire loan:

Karnataka Bank has the authority to withdraw the entire loan when

  • The bank discovers that the loan amount is mishandled.
  • The installments are not received according to accepted terms and conditions

Penalty for installment non-payment

If you don’t pay the installments on time, it will be subject to imposition of penalty @ 2% on the outstanding installment amount.

Interest calculation technique

Interest is calculated on the basis of daily balance technique and it is debited once every month. If you fail to pay the installments on time, it will draw penalty @2% in addition to the approved rate.

When loan account information will be forwarded to Credit Reference Agencies:

Information about every deliberate defaulter is informed to a credit reference agency, that is CIBIL, every month. Prior to passing on the matter, the borrower will be duly informed regarding the suggestion to categorize him as deliberate defaulter together with the grounds thereof. He will also be notified regarding the outcomes of passing on the matter to CIBIL. That particular borrower is given sensible time (such as 15 days) for giving a reply to such verdict, if he wants, to a Group led by the Chairman and Managing Director.

You should remember that terms and conditions of the bank are liable to change on a periodical basis.



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