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Personal Loan

Karnataka Bank Limited is a private sector banking institution, based in the coastal city of Mangalore in the state of Karnataka, India. The personal loan that is offered by Karnataka Bank cover purposes  such as purchasing consumer durables for the home, furnishing of the home, funding a child’s education or even financing a marriage or thread ceremony as well as, paying off medical bills both for the borrower or a dependent. The Karnataka Bank Personal Loan is a way of fulfilling your dreams and wishes and a way of meeting all financial emergencies head on.

Purpose or objective of the Karnataka Bank Personal Loan

Here are some of the objectives or purposes for which customers utilize the Karnataka Bank Personal Loan:

  • For the purchase of consumer durables or household articles
  • For funding of a child or children’s education
  • For financing a marriage or thread ceremony of self or a dependent
  • For financing the medical expenses of self or a dependent
  • For the repair of the borrower’s own house
  • For obsequies expenses

Types of Personal Loans that are offered by Karnataka Bank

The Karnataka Bank offers personal loan of two types which are dependent on the loan applicant’s type of employment. For all salaried individuals, the Karnataka Bank has an offer, its KBL Salaried Persons Loan. The loan applicant will be able to avail a maximum of 10 times his or her gross salary with this Karnataka Bank Personal loan, up to a maximum amount of Rs. 5 lakhs.

Karnataka Bank also has on offer its K-Power Personal Loan, which can be availed by any individual who has a savings bank account or current bank account with Karnataka Bank. He or she may be a salaried person or a self-employed professional or someone who receives a regular income from rent or pension, etc. The amount of Karnataka Bank Personal loan that may be availed is dependent on the branch manager of the Karnataka Bank branch from which the loan applicants apply for a Karnataka Bank Personal loan. A maximum loan amount of Rs. 25000 may be availed, in multiples of Rs. 1000. This withdrawal can be made through ATM. The period of this loan is 12 months and is subject to renewal or review before the due date.

KBL Insta Cash

A personal loan which is issued by the bank against securities held by the applicant for consumption purposes and which has the following features:

  • Individuals who wish to apply for a Karnataka Bank Personal Loan should be aged 18 years and above. Other than individuals, Hindu Undivided Families (HUFs), joint borrowers or partnership firms can also apply personal loan
  • The minimum amount of loan that is issued under this type of personal loan is Rs.10, 000 while individuals have the liberty to avail the maximum amount of loan up to Rs.500 lakhs
  • The loan can be issued either as term loans which have a fixed period or as an overdraft facility.
  • If the loan is availed as a fixed term loan, the maximum period allowed to repay the personal loan would be 60 months or 5 years. For Karnataka bank personal loan which is offered as an overdraft, the bank allows maximum repayment tenure of 24 months to repay off the loan. The interest payable under the loan would have to be paid every month.
  • The loan can be paid on the due date stipulated under the scheme either as a lump sum amount or in annual, half-yearly, quarterly or monthly installments
  • The loan comes as a secured loan which requires a security for banks to offer personal loans. The security required would be in the form of pledging of National Savings Certificates, KisanVikasPatras, post-office term deposits, etc.
  • A margin would be held by the bank and the entire loan would not be issued. The margin held by the bank would range from 10% to 40% depending on the merit of the loan application
  • The Karnataka Bank personal loan interest rate payable on this personal loan would be 11.45% per annum

KBL Suvidha Overdraft

This is an overdraft facility extended to customers who want finance for meeting their personal expenses. The salient features of this loan scheme offered by Karnataka Bank are mentioned below:

  • Applicants who are residents of India can avail this loan facility if they are aged 21 years and above.
  • Other Karnataka Bank Personal loan amount eligibility criteria forming the personal loan requirements include a minimum gross monthly salary of Rs.10, 000 for salaried individuals and disposable income besides the pension for pensioners. Other individuals who are self-employed professionals or self-employed non-professionals should have a minimum annual gross income equal to Rs.1.2 lakhs
  • The personal loan requests can be made for meeting any sort of personal requirements
  • The amount of loan sanctioned under this scheme would be lower of two times the average annual income of the last two years in case of self-employed professionals and non-professionals or 24 times the current salary of salaried individuals. Take home salary of a salaried employer. The minimum and the maximum absolute values of the loan is Rs.1 lakh and Rs.25 lakhs
  • The loan must be paid back in allowable tenure of 24 months
  • This is also a secured loan which is offered against specified securities pledged to the bank. The first security required would be the mortgage of a residential property of the applicant, any commercial property or any liquid securities. The value of such security should be a minimum of 150% of the amount of loan applied for.
  • Other than the security requirement mentioned above, a third party guarantee from a solvent individual would be required. If the third party guarantor is not available, guarantee of the spouse, if feasible would be required for processing the Karnataka Bank personal loans
  • One-third of the security amount would be required as margin as the bank maintains a ratio of 33.33% of the value of the security as margin
  • The rate of interest charged for a personal loan by the bank on this type is 13.95% per annum.

Karnataka Bank Personal Loan Eligibility

Individuals over the age of 21 years and under the age of 55 years are eligible for Personal Loan offered by Karnataka Bank. They should have a regular source of income required for Karnataka Bank Personal Loan and should preferably earn more than the minimum amount that is required. The Karnataka Bank Personal Loan will be sanctioned by the bank on basis of the loan applicant’s eligibility, which is determined by his or her repayment capacity. The loan applicant’s repayment capacity depends on factors mentioned below.

Factors affecting the Karnataka Bank Salaried Persons Personal Loan eligibility

  • The income of the Karnataka Bank Personal loan applicant is a major factor in determining his or her eligibility as those with higher incomes are naturally assumed to have a higher capacity of repayment. Therefore, higher earning individuals have a better chance at having their loan applications sanctioned.
  • Employment history – Loan applicants with a history of stable employment are viewed more favorably than those who switch and change jobs often.
  • If the Karnataka Bank Personal loan applicant has an existing relationship with Karnataka Bank that is healthy in nature, then his or her eligibility status is enhanced.
  • Karnataka Bank conducts a check on the loan applicants’ CIBIL score prior to accepting or rejecting the application.
  • Young loan applicants who change their jobs frequently are viewed as unstable and experimental with their jobs, so they may have some difficulty having their loan application approved. At the other extreme, loan applicants who are very close to retirement may also have some amount of trouble getting their Karnataka Bank Personal loan sanctioned by the bank as it is assumed that their capacity to repay Karnataka Bank Personal loan will diminish post retirement.
  • If the loan applicant has a load of any existing debt, the bank will take that into consideration before approving the loan application.
  • Those loan applications under the permanent regular employ of a reputed company are viewed favorably by the bank.

Interest Rate of Karnataka Bank Personal Loan

The Karnataka Bank Personal Loan interest rate that is charged on the KBL Salaried Persons Loan is 13.95%


As security, the Karnataka Bank accepts the following for its KBL Salaried Persons Loan:

  • For a loan amount of up to Rs. 2 lakhs, security has to be provided by the loan applicant in the form of co-obligation of solvent party/co-employee, who has to be a permanent employee of reputed public or private sector companies, institutions, schools, colleges, universities, etc.
  • Above Rs. 2 lakhs, security is accepted in the form of co-obligation of solvent party/co-employee, who has to be a permanent employee or reputed public or private sector companies, universities, colleges, schools, institutions. Security has to be also provided by the loan applicant in the form of liquid security, that is, LIC policies, NSC (National Savings Certificate) and deposits up to the extent of 25% of the limit.

Karnataka Bank Personal Loan Fees and Charges



Loan Processing Fee

0.50% of the advance, subject to a minimum of Rs. 250.

Pre-payment Fees

There are no pre-payment fees

Solvency Certificate


Duplicate of No Dues Certificate or NOC


No Due Certificate or No Objection Certificate (NOC)


Stamp Duty and other Statutory Charges

As per applicable laws

Legal / Incidental Charges


Documentation required for the Karnataka Bank Personal Loan

The loan applicant has to provide the original as well as a self-attested copy of his or her Passport, or Voter’s ID card or Driving License, which the bank will consider as identity proofs. Furthermore, the applicant has to provide the original and self-attested copy of his or her Passport, or telephone bill, or electricity bill or ration card or rental agreement. These documents are considered as address proofs by the bank. To verify the income, credit worthiness and true financial situation of the loan applicant, the bank will need to be provided with the applicants’ most recent received salary slip or the current dated salary certificate along with corresponding  Form 16, and the applicants’ previous three months’ bank statement or previous six months’ bank passbook.

Added benefits and features of Karnataka Bank Personal Loan

  • The KBL Salaried Persons Personal Loan has a ceiling limit of Rs.5 lakhs.
  • The loan has repayment tenure of up to 5 years. An individual availing the loan can choose any term until 5 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 5 years like 2 or 3 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 55 years.
  • Karnataka Bank keeps its interest rates low and at a competitive percentage as compared to other banks.
  • Loan applicants are informed at the very outset about each and every cost and charge applicable, they are not later shocked by hidden charges and costs that come up. Therefore, the loan applicants are subjected to a completely clear picture of the charges, costs, process, etc.
  • Repayment of the Karnataka Bank Personal 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.
  • Loan applicants will always be able to connect with Karnataka Bank to clear any grievances, queries or problems, through the provision of 24/7 Phone Banking facility.
  • Karnataka Bank boasts of fast processing of its Personal Loan; provided all documents are offered and that everything is  in accordance with the policies, the Karnataka Bank Personal Loan may be processed and disbursed in 5 working days.

Calculate EMI for Karnataka Bank Personal Loan

Karnataka Bank accepts repayment in the form of EMIs or Equated Monthly Installments. The following are some illustrations of calculated Karnataka Bank Personal Loan EMIs featuring different scenarios of loan applicants, with different loan terms, interest rates and amounts.

  • Mrs. Kanwar recently got a transfer and has now been relocated to Delhi. Her daughter needs to be admitted in to a highly reputed college that specializes in hospitality management. As the college fees are quite high she will need Rs. 4.50 lakhs to meet all expenses for the admission of her daughter in that college. As she has recently shifted to a new city, she has fallen short of the immediate cash and has to pay the fees within a period of two weeks. Ms. Kanwar meets with a representative of Karnataka Bank. After discussing and providing the relevant documents, she is sanctioned a personal loan of Rs. 4.50 lakhs, with Rs.11, 543 as her EMI at the  interest rate of 15.50% with a loan repayment tenure of 5 years. Mrs. Kanwar is pleased with this arrangement and within a week, she receives the amount in her savings bank account.
  • Mr. Ghosh wants to take a short trip around the country with his spouse  and checks with many travel agencies regarding this; he finds one that gives him a great deal. The travel agency gives an all-inclusive figure of 4 lakhs for the trip. Mr. Ghosh is short of Rs.1.5 lakhs and as he does not want to compromise on his holiday, he makes up his mind to take a personal loan, rather than cut short his trip. He meets a Karnataka Bank loan agent and discusses the situation with him. He is sanctioned a loan with an EMI of Rs. 4875, at an interest rate of 15.50% with a loan repayment tenure of three years.
  • Ms. Bhatia has moved into a new apartment, which she is eager to set up and furnish. However, some of her old furniture has gotten too old, to the point of which she intends to sell them off. As she will need new furniture for her new apartment, Ms. Bhatia decides to take a personal loan so that she can do the same. She checks with several banks, but their rates put her off. She goes online and checks the website of the Karnataka Bank website.  She is excited to realize that she is eligible for a loan from the Bank and at a rate of interest that is satisfactory to her. The next day she walks into a Karnataka Bank branch and speaks with a KBL loan agent. Since she has taken all the required documents, she applies for the personal loan then and there. The Karnataka Bank KBL Salaried Persons Personal Loan is disbursed to her in five working days as all her documents and credit score checks out. Ms. Bhatia receives a loan of Rs. 5 lakhs, with an EMI of Rs. 10, 747, for a period of 5 years and at a rate of interest of 10.50%.
  • Mr. James has a parent who needs regular hospitalization due to an ongoing medical condition. Since a particular aspect of the medical treatment is expensive and costs Rs. 3 lakhs, Mr. James decides to approach Karnataka Bank with a request for a personal loan for the same. On meeting with a KBL loan agent and providing all the necessary documentation and information, he is sanctioned a loan of Rs. 3 lakhs for 2 years, with an EMI of Rs.13, 920 at an interest rate of 15.55%.


Loan Amount (Rs.)

Interest Rate


EMI (Rs.)

Ms. Kanwar

4.50 lakhs


5 years

11, 543

Mr. Ghosh

1.5 lakhs


3 years


Ms. Bhatia

5 lakhs


5 years

10, 747

Mr. James

3 lakhs


2 years

13, 920

Why choose a personal loan from Karnataka Bank?

Karnataka Bank can proudly boast of thousands of satisfied customers who would willingly vouch for the excellent services that they have received from Karnataka Bank. One of the many services that customers avail from Karnataka Bank is the facility of personal loan. Karnataka Bank always keeps their customers satisfaction at the forefront and makes it their primary concern. They have highly trained personnel who are experienced in handling Karnataka Bank personal loans and who make the process of applying for one from their bank a hassle-free one. The personnel engaged in the Karnataka Bank Personal loan facility take great trouble to clarify all doubts and queries that the potential customer or borrower may have. Their aim is to guide their customers correctly, efficiently and to ensure that the customers are left with peace of mind when dealing with Karnataka Bank and especially during the loan application process.

Benefits that customers receive by availing Karnataka Bank Personal Loans from Karnataka Bank:

  • Karnataka Bank keeps their interest rates at a competitive level
  • Documentation process is easy and quick
  • Karnataka Bank ensures that the processing fee for the Karnataka Bank Personal loan is kept to a low and affordable level
  • Charges are stated upfront and there are zero hidden charges
  • The entire Karnataka Bank Personal loan sanctioning process is a quick and efficient one

Applying for a Karnataka Bank Personal Loan

An individual seeking a loan can open the Paisabazaar.com website which allows the application for Karnataka Bank Personal Loan online through the website. Personal Loans will have some basic requirements that will be needed for the bank to process the loan. When the interested customer fills up the contained application form on the website and submits the required documents, the loan process commences.

The online portal uses the personal details and documents that the loan applicant provides to verify the personal details of the individual and to check if he or she is within the eligibility criteria that have been set for personal loan. Furthermore, the documents are used to check the CIBIL score of the individual. Once all the documents have been provided, the necessary checks have been conducted; the bank will approve or reject the loan accordingly. If the bank approves the loan, Paisabazaar.com would help the individual to avail the loan easily and at the earliest without having to go through unnecessary hurdles and inconveniences.

Frequently Asked Questions

  • Does Karnataka Bank offer only one type of Personal Loan?

No, Karnataka Bank offers personal loans of multiple types which are designed to cater to specific requirements. While the KBL Salaried person loan is meant for meeting the Personal expenses of salaried individuals, KBL Insta cash loan can be availed by anyone for their personal requirements against securities held by applicants. KBL Suvidha OD scheme is an overdraft scheme of personal loans which is granted as an overdraft facility for meeting personal expenses.

  • What is the minimum and maximum quantum of loan over the range of personal loan schemes offered by the bank?

If we compare the loan quantum of all the personal loan schemes together, the range of minimum and maximum value of loan would be from Rs.10, 000 to a maximum of Rs.500 lakhs. Most loan schemes under the Personal Loan criteria also offer Karnataka Bank Personal loans linked to the income earing capacity of the borrower subject to a pre-defined maximum limit.

  • What are the different interest rates on the different types of loans offered under the personal loan category?

The various interest rates on the respective personal loan schemes are listed below:

  • KBL Salaried Persons Loan charges an interest rate of 13.95%
  • KBL Insta Cash has an interest incidence of 11.45%
  • KBL Suvidha OD charges a rate of interest of 13.95%


  • What is the loan repayment tenure for Karnataka Bank Personal Loan granted under the personal loan?

The loan tenure of the various schemes of personal loans offered by Karnataka Bank ranges from 24 months for overdraft facilities to 60 months for loans issued as term loans with fixed loan tenure.

  • Is any security required when the applicants apply for a Karnataka Bank personal loan ?

Yes, Karnataka Bank offers personal loans with the requirement of pledging a security for the loan to be sanctioned. The security can be a mortgage of the property, either residential or commercial owned by the applicant, pledge of Government securities held like NSCs or KVPs, third party guarantee from a person who is solvent enough to provide a guarantee or a guarantee from the applicant’s spouse.

  • To what use can the loan be put?

The various types of loan schemes discussed above are all meant for personal usage of the customer and can be used for meeting any expenses of personal nature.