Karnataka Bank offers a variety of home loan schemes with interest rates starting at 9.26% p.a. These schemes include KBL Xpress Home Loan (Apna Ghar), KBL Xpress Home Comfort, and KBL Xpress Ghar Niveshan. The maximum repayment tenure is up to 30 years, with a processing fee of 0.25% of the loan amount, capped at ₹25,000 (inclusive of upfront fee and taxes). For renovation or repair, the loan tenure is up to 7 years.
Karnataka Bank Home Loan Interest Rates 2023 Highlights
| Home Loan Scheme | Interest Rate (p.a.) |
|---|---|
| KBL Apna Ghar (Finance for Renovating or Purchasing a House) | 9.26% to 10.53% p.a. |
| KBL Home Comfort (Finance for furnishing house) | 10.85% to 11.25% p.a. |
| KBL Ghar Niveshan (Loan for purchasing a residential/house site) | 12.64% to 13.77% p.a. |
| KBL Home Top Up (Loan for fulfilling personal requirements) | 10.85% to 11.25% p.a. |
Interest rates are subject to change without prior notice. Terms and conditions apply.
Karnataka Bank Home Loan Interest Rate Calculator
Calculating your home loan EMI in advance is crucial to determine if you can afford the loan amount you desire. This calculation helps in planning an effective repayment schedule. To get an accurate estimate and avoid manual calculation errors, use a home loan EMI calculator for Karnataka Bank housing loans.
Factors Affecting Karnataka Bank Home Loan Interest Rates 2023
Several factors influence Karnataka Bank’s home loan interest rates:
- Interest Rate Benchmark
- External Benchmark Based Lending Rate (EBLR):
- Applicable to loans below ₹500 lakh, excluding MSME loans.
- Current rates (effective from April 1, 2023):
- 10 Years G-Sec rate: 7.36%
- 6 Months T-Bill rate: 6.96%
- Marginal Cost of Lending Rate (MCLR):
- Minimum interest rate at which commercial banks can lend, based on the marginal cost of funds, tenure premium, operating costs, and negative carry with respect to the cash reserve ratio (CRR).
- Current MCLR rates (effective from April 1, 2023):
- One Year MCLR: 9.70%
- Six Months MCLR: 9.40%
- Three Months MCLR: 9.25%
- One Month MCLR: 9.05%
- Overnight MCLR: 8.95%
- External Benchmark Based Lending Rate (EBLR):
- Loan-to-Value (LTV) Ratio
- Determines the loan amount disbursed as a percentage of the property’s value. A lower LTV ratio results in quicker loan approvals, while a higher LTV ratio is considered riskier.
- As per Reserve Bank of India (RBI) guidelines, Karnataka Bank follows these LTV ratios:
- Up to ₹30 lakh: 90%
- Above ₹30 lakh and up to ₹75 lakh: 80%
- Above ₹75 lakh: 75%
