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Home Loan

Karnataka Bank Limited is a private sector banking institution. It is based in the coastal city of Mangalore in the state of Karnataka, India. Karnataka bank offers a home loan that will fulfill the requirements of their customers. The home loans offered by Karnataka Bank covers various needs of the customers from providing finance for the construction or the purchase of a house, to covering renovation costs, furnishing of the house. The rates of interest are attractive and also competitive in the home loan market.

Karnataka Bank (KBL) Apna Ghar Home Loan

Karnataka Bank offers home loans to suit the needs and requirements of all and sundry. Given below are the details of the KBL Apna Ghar Home loan as offered by the Karnataka Bank to its customers:

This Home Loan is issued by Karnataka Bank for the purpose of purchasing a house or constructing one. When it is used for the purchase of an already-built house, that house can be either a brand new constructed house or one that was previously occupied and is now about to be purchased by the loan applicant. Furthermore, the customer may avail this loan for the improvement or renovation of an existing flat or house. The customer can opt to avail the loan under a single name or he or she may opt to avail the loan under two or more names jointly. 

KBL Home Loan Eligibility

Interested applicants will need to have their eligibility checked by Karnataka Bank if they wish to avail a home loan from Karnataka Bank, as not all applicants would fulfill the requirements for one. To do a preliminary check, the applicant may visit Paisabazaar.com website to check their KBL home loan eligibility against the requirements mentioned there.

Individuals over the age of 21 and under the age of 70 are eligible for the KBL Apna Ghar Home Loan offered by Karnataka Bank. The KBL Home Loans sanctioned by the bank will be on basis of the customer’s home loan eligibility, which is determined by his or her repayment capacity. The repayment capacity is considered on the basis of the following factors:

  1. Income of the customer – If the loan applicant earns more than the minimum amount required then it will increase his or her chances of getting the loan approved.

Minimum Income for Indian Residents:

  • Salaried Individual: Minimum gross monthly salary should be Rs.10,000/-
  • Agriculturist : Minimum Annual net income should be Rs.1,20,000/-
  • Business Men/Professionals/Self Employed: Minimum Annual gross income Rs.1,20,000/-

Minimum Income for NRIs:

  • Salaried Individual: Minimum gross monthly salary Rs. 40,000/-
  • Business Men/Professionals/Self Employed: Minimum Annual gross income of Rs.4,80,000/-
  1. Number of dependents
  2. Assets and liabilities
  3. CIBIL Score – Before either approving or rejecting the KBL Home loans, Karnataka Bank will conduct a check on the loan applicant’s CIBIL score. CIBIL, which stands for Credit Information Bureau Limited, was founded in the year 2000, and is India’s first credit information company.

KBL Home Loan Amount

  • Karnataka Bank issues a loan amount equal to 60 times of the latest monthly net salary for a salaried individual.
  • For Businessmen/Professionals/Self Employed: 5 times the average net income/Profit plus depreciation provided, if any, of the last 2 years as per P&L a/c in case of traders/Self-employed/Professional.
  • Agriculturist: 5 times the current year net income.
  • Maximum amount in case of purchase/construction is up to Rs. 500 lakhs and for renovating/repairing/extension, the amount is up to 30 lakhs

KBL Home Loan Tenure

The maximum period of loan for construction is up to 30 years. While the maximum period of loan for renovating/repairing a house is 7 years.

Karnataka Bank Limited Home Loan Interest Rates

The current MCLR for one year is 9.20%. The Karnataka Bank Apna Ghar Home Loan rate of interest charges are levied as follows


Loan Amount (Rs.)

Effective Rate

Up to Rs. 300 lakhs


Above Rs. 300 lakhs and up to Rs. 500 lakhs


The margin for constructing a new house is 15%-20% and for houses/flats above 10 years is 30%.

Applicable Charges on the Karnataka Bank Home Loan


Description of Charges

Karnataka Bank Apna Ghar Home Loan

Loan Processing Fees

Up to Rs. 25 lakhs


Pre-closure charges


0.25% of the loan amount subject to a minimum of Rs. 250


As decided by the bank from time to time



Repayment of the Karnataka Bank Apna Ghar Home Loan will take place as EMIs or Equated Monthly Installments, in which the pre-decided amount will be deducted on a monthly basis from the borrower’s bank account.

Documents Required

Karnataka Bank asks its customers for the following documents to avail of a home loan issued by it –

  • Copy of any of these – the applicant’s Passport, or Driver’s License, or PAN Card or Voter’s ID Card which would serve as an Identity Proof because all these documents contain the applicant’s photograph along with his name
  • Copy of any of these – the applicant’s Passport, or electricity bill, or Ration Card, or Telephone Bill, or Rental Agreement which would serve as the applicant’s residence proof. All these documents contain the address of the applicant which would serve as a proof for the bank.
  • The applicant’s bank statement or passbook with details of the past three months or six months transactions, respectively. These documents represent the applicant’s income status before he or she applies for the home loan. this would help the bank to determine the applicant’s financial position as on the date of loan application.
  • The applicant’s most recent computation of income
  • The applicant’s most recent Salary Slip or their current dated Salary Certificate and recent Form 16 which depicts the applicant’s current salary of the applicant if he is salaried. This is required to match the applicant’s salary to the salary eligibility as required by the bank.
  • The applicant’s previous three years CA Certified/Audited Balance Sheet and Profit & Loss Account (for businesspersons)
  • The applicant will have to provide the Agreement for the  sale of the flat/house and proof of membership (for co-operative societies)
  • The applicant will have to provide estimates for construction and / or valuation report for acquisition or legal opinion on the property from a bank approved engineer or lawyer.
  • The applicant has to provide a cheque to the bank with the processing fees amount.

More Features of the Karnataka Bank Home Loan

  • This loan is available to individuals who are aged between twenty-one years and seventy years of age. The loan applicant should be working in a reputed company a fixed regular income and earning a fixed regular income from that company for a minimum of three years.  The minimum gross salary of the loan applicant should be Rs. 6000. Businesspersons, self-employed people and professionals between twenty-one and seventy years are eligible for this loan. He or she should be having a minimum of three years work experience in their line of activity/having their business for at least three years.  The minimum gross annual income of the loan applicant should be Rs. 60,000.
  • The Karnataka Bank Apna Ghar Home Loan has a ceiling limit of 70% to 75% of the property value.
  • The loan can be used to buy a new house or build a new house. Buying a plot of land can also be accomplished using the loan. It can also be used for the extension, renovation and refurbishing of a house, plot or flat.
  • The loan has repayment tenure of up to 15 years. An individual availing the loan can choose any term until 15 years for paying off the loan. With such a long tenure, paying off the home loan becomes easier for the customer. The longer tenure of repayment also ensures lower EMIs as the installments are spread over a longer time frame making them affordable. If the customer, however, wishes to dispose of the loan sooner, he may choose a term earlier than 15 years like 12 or 10 years. The corresponding EMI will be higher, but if the loan applicant can afford the rates then there will be no problem in paying off the loan sooner. The repayment of the home loan has to be completed by the time the borrower reaches the age of 70 years.
  • When applying for KBL Housing loan, a co-applicant may be added by the main loan applicant. This co-applicant does not necessarily have to be the co-owner of the property. Co-applicants of the loan can be spouse (husband or wife), father or mother of the applicant.
  • The amount of finance that is provided by the Karnataka Bank Apna Ghar Home Loan is as follows –  For the purchase or construction of a new house or flat, it will be
  • Sixty times the last drawn salary (net take home amount) in the case of salaried persons
  • Five times the annual net income plus depreciation provided, if any, as per the Profit and Loss account, in the case of traders, professionals, and self employed people.
  • Rs. 50 lakhs

For the renovation or repairs of a house or flat

  • A maximum amount of Rs. 10 lakh or 40% of the value of the house or flat, whichever amount is lower.
  • The customer may choose to mortgage the property that he or she wishes to avail the home loan for, as means of providing security to Karnataka Bank. The customer has to ensure in this case that the property has to be in his or her or jointly with a spouse who is considered the co-obligant. The loan applicant should have a clear and marketable title over the property. He or she should have comprehensive insurance on the property for adequate value. Where there is the non-availability of a third party solvent guarantor, the guarantee of the spouse will be accepted by the Bank.
  • The margins charged when the applicants apply for a KBL Home Loan -  Apna Ghar are as follows
  • 20% for the construction of a house on a plot of land that is already owned.
  • 25% of the total cost in the case of a house or a flat that is not older than 5 years.
  • 30% of the total cost in the case of a house or a flat that is over 5 years but not over 20 years.
  • 30% of the cost of renovation or repairs, subject to maintaining the 40% margin on the value of the house or flat.


  • Tax benefits are available on the principal and interest components of the KBL home loan.         
  • Borrowers may make pre-payments on this KBL Home loan. The bank does not charge any penalties on pre-payments.
  • The option or facility of pre-closure of the loan is available, however, there will be charges levied by the bank.
  • If the customer provides all the required documents for home loans, then the Karnataka Apna Ghar Home Loan may be sanctioned in as short a period as fifteen working days and if the sanction for the loan is being processed at the branch level. If the sanction is taking place at the Regional Office level, then the loan will be disbursed within 45 working days. If the sanction is taking place at the Head Office level then the loan will be sanctioned after receiving all the necessary documents and information from the loan applicant.
  • The bank has the right to recall the entire loan if it is found that the loan amount is being misused or if the repayment is not going through as per the agreed terms.
  • There is a penalty charge of 2% if there is any nonpayment of installments.

Purpose or objective of the Karnataka Bank Home Loan

The purpose or objective for which the Karnataka Bank Home Loan, otherwise also known as the ‘KBL Apna Ghar’ loan may be availed is as follows:

  • For the purchase of a new flat or house or the construction of a house or flat
  • For the purchase of a plot of land and construction of house (both) thereon
  • For the purchase of an existing (old) house or flat or for the extension of an existing house
  • For the purchase of a plot only
  • For the repair or renovation of an existing house or flat
  • For furnishings/consumer durables

Karnataka Bank Home Loan EMI Calculator

PaisaBazaar offers EMI calculator for the convenience of its applicant. The EMI calculator is a simple and handy tool that makes the financial planning of the applicant really easy. One may know how much saddle the upcoming loan EMI is going to put on their monthly budget.

Any Interested applicant may login to www.paisabazaar.com. The applicant may select the EMI calculator and fill up the requisite details accordingly. Post-filling up the details such as Loan Amount, Rate of Interest and Tenure, the results would be prompt and the applicant may know the forthcoming EMI amount in case he/she applies for the personal Loan.

Reasons to opt for KBL Housing Loans

Thousands of satisfied customers vouch for the excellent services that they have received from Karnataka Bank, which includes the facility of Karnataka Bank home loans. With honest and quality services, Karnataka Bank takes pride in keeping their customers’ needs and satisfaction at the forefront of their services. To meet this aim, they employ personnel who are extremely efficient and experienced in handling home loan services and who ensure that the entire process is a trouble-free one. The loan agents ensure that the customers are made aware that they have a flexible option for repaying their KBL Home loans and that their documents are kept in safe storage whilst the bank is in possession of them. The loan has no hidden charges as all the applicable charges in the home loan are made known to the customer upfront when he applies for the loan. Even the documents required for availing the home loans are kept in safe custody with the bank to avoid any damage of the documents. The customer has peace of mind when undergoing the process of application for the Karnataka Bank home loan. Here is a list of a few more reasons KBL offers which shows why customers may opt for KBL Housing Loans –

  • Interest rates that are attractive and competitive as per industry standards
  • Easy documentation
  • Fast loan processing
  • Low processing fee
  • No hidden costs or charges
  • High level of customer satisfaction

How to apply for Karnataka Bank Home loans

A person who wishes to apply for a Karnataka Bank Limited Home Loan may do so through the Paisabazaar.com website. An application form would have to be filled. When the home loan application form is filled and submitted online, the Karnataka Bank Limited home loan process commences.

After doing the necessary check like credit worthiness, etc. the bank will issue the Karnataka Bank Limited home loan. It will be decided also how much EMI (Equated Monthly Installments) the customer will have to pay and he or she will be informed about the rate of interest that he or she will be charged.