Apply for Karur Vysya Bank home loan online and get in principle approval in 15 minutes. Interest rate varies from 7.15% to 9.35% p.a. and processing fee between Rs. 2,500 to Rs. 7,500 + GST will be charged. Borrowed amount can be repaid in tenure up to 25 years and there are no charges on loan prepayment.
Karur Vysya Bank follows the MCLR interest structure for its Home Loans. MCLR concept is active in all banks with effect from April 01, 2016. Many banks have switched to an external benchmark rate by announcing retail loan products linked to RLLR. However, Karur Vysya Bank has not announced anything in this regard.
Karur Vysya Bank has announced its MCLR with effect from September 07, 2019. The MCLR of Karur Vysya Bank for various tenures is as hereunder.
Tenor | Overnight | 1M-MCLR | 3M-MCLR | 6M-MCLR | 1Y-MCLR |
MCLR | 8.35% | 8.35% | 8.60% | 9.15% | 9.45% |
The interest rates applicable to Karur Vysya Bank Home Loans are as follows:
Home Loan Products | Minimum | Maximum |
KVB Smart Home Loan | 8.80% | - |
Housing Loan | 9.55% | 11.55% |
KVB Gruhapravesh | 9.55% | 11.55% |
Housing Loan under CRE | 9.90% | 12.40% |
Karur Vysya Bank adopts the daily reducing balance method for calculating Home Loan interest. The ideal mode of repayment is EMI. Agriculturists have the option to repay the Home Loan in EQI (equated quarterly instalments) or EHYI (equated half-yearly instalments). It is because farmers do not have a regular monthly income. Their income coincides with the harvesting season.
EMI is the best concept for repaying Home Loans. EMI comprises of two constituents, the interest repayment part and the principal repayment component. Both of these components are variable. In the initial stages of Home Loan repayment, the interest component is higher than the principal repayment constituent. However, as you keep repaying your instalments on time, the principal repayment portion keeps on increasing.
Karur Vysya Bank customers have the following repayment options:
Other bank customers can repay the Home Loan through the following ways:
Online Application
Apply at the branch
Through MyMoneyMantra
MyMoneyMantra Home Loan executives will help you with completing the necessary formalities.
Use the EMI Calculator provided on the Karur Vysya Bank website to determine your Home Loan EMI.
Submit the following information to get your EMI:
MyMoneyMantra has a similar EMI Calculator to help customers to know their EMI.
Karur Vysya Bank has a domineering presence in the state of Tamil Nadu. The bank is an active player in PMAY. The rates of interest on PMAY Home Loans are the same as that of regular Home Loans. The upfront interest subsidy is the only distinguishing factor. The upfront subsidy reduces the EMI considerably. The details of the PMAY scheme are as follows:
Borrower category | Economically Weaker Section EWS | Low-Income Group LIG | Middle-Income Group-I MIG-I | Middle-Income Group-II MIG-II |
Annual family income ceiling | 3 Lakhs | 6 Lakhs | 12 Lakhs | 18 Lakhs |
Amount eligible for a subsidy | 6 Lakhs | 6 Lakhs | 9 Lakhs | 12 Lakhs |
Rate of subsidy | 6.5% | 6.5% | 4% | 3% |
Maximum subsidy | 2.67 Lakhs | 2.67 Lakhs | 2.35 Lakhs | 2.30 Lakhs |
Loan Amount Slab | Processing Fees |
Up to 25 Lakhs | 2,500 |
25 Lakhs <= 50 Lakhs | 5,000 |
Above 50 Lakhs | 7,500 |
Income tax concessions are available on Karur Vysya Home Loan repayments. The Income Tax Act allows tax rebate on interest as well as principal amount repayment.
Interest Repayment: Sec 24 of the IT Act provides concession of 2 Lakhs per borrower per annum on interest repayment of Home Loan.
Principal Amount Repayment: Sec 80C of the IT Act offers a rebate in income tax for the repayment of the principal portion of Home Loan up to 1.50 Lakhs.
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No, as on date, Karur Vysya Bank offers Home Loans on a floating rate of interest basis. It does not offer a fixed rate of interest Home Loans under the MCLR concept.
No, Karur Vysya Bank has not announced any retail loan products that link to an external benchmark rate. Reserve Bank has urged all commercial banks to link their retail loans to an external benchmark rate before October 01, 2019.
Reserve Bank of India has recommended the following external benchmark rates for banks to follow:
The T-bill rates can be volatile. Hence, it can affect the overall Asset-Liability position of Indian commercial banks. The repo rate is the ideal one as the Reserve Bank announces these rates regularly. The recent announcement saw a reduction in the repo rates from 5.75% to 5.40%.
As per RBI guidelines, banks should not charge foreclosure and prepayment charges on floating rate of interest Home Loans. Hence, Karur Vysya Bank does not charge any foreclosure or prepayment charges. It does not have a fixed rate Home Loan option today.
No, the Home Loan rates link to the MCLR, but they do not change with every change in the MCLR. The MCLR concept has an interest reset clause embedded in each Home Loan product. The Home Loan interest rate varies only on resetting it. The banks decide on a specific frequency for resetting the Home Loan interest rate.
Ideally, the EMI should change with an increase or reduction in the MCLR. However, Karur Vysya Bank prefers to alter the loan tenure by either increasing or reducing it accordingly. It does affect the overall payment position of the borrower. The borrower can exercise their request to alter the EMI and maintain the tenure as constant.
Every PMAY loan is eligible for a subsidy. The subsidy amount depends on the category of the borrower and the loan amount.
The bank claims the grant from the Central Nodal Agency. On receiving the subsidy, the bank credits the same to the loan account of the borrower. The crediting of the upfront subsidy reduces the principal liability of the borrower. Therefore, the EMI changes accordingly.
Yes, there is no limit up to which you can borrow if you are eligible otherwise. However, the loan amount is restricted as far as the calculation of subsidy is concerned. The loan amount above this ceiling is an unsubsidised loan.
Home Loans to acquire third and fourth houses qualify as Home Loans under CRE. These loans have a higher rate of interest as compared to conventional housing loans.