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Personal loan

Personal loan from Karur Vysya bank comes at attractive interest rates, flexible repayment process and a proper defined approval channel. It caters to individuals requiring funds for personal purposes such as renovation of home premises, funding of child’s education, vacations with family and such other expenses which are unavoidable and require a substantial amount for execution.KVB Personal Loans are available for both salaried employees of various PSU’s, self-employed institutions and all other investors who are capable of providing collaterals such as National Savings certificates (NSC’S),KVP’S, RBI bonds, LIC policies as security purpose.


Key Features of KVB Personal loan:
 

  • It is a multipurpose loan. It can be taken for purposes such as wedding, Home renovation, vacations or funding of certain courses. In short, these KVB Personal loans are issued for expenses which are unavoidable and need to be made on an urgent basis.
  • Personal loans from KVB can only be availed for personal usage. It cannot be applied for any commercial purpose.
  • A guarantor for the KVB Personal loan is not asked for in order to apply for a KVB Personal loan in case of a secured KVB Personal loan. However, in case of a salaried professional, applying for unsecured KVB personal loan with the bank, the applicant’s colleague drawing an equal amount of salary may act as guarantor.
  • The bank extends both secured and unsecured KVB Personal Loan up to a maximum amount of Rs.100 lakhs.
  • The bank allows the applicant a maximum of 36 months period to repay KVB Personal loan
  • The applicant has to provide a demand Promissory note as primary security, for his KVB personal loan requests
  • The applicant must provide NSC’S, KVP’S, bank deposits, or LIC policies as collaterals against the applied KVB Personal loan amount.

Eligibility:
 

  •  An applicant must be minimum 21 years of age in order to avail this facility
  • The maximum age limit for availing this loan is set at 58 years.
  • A salaried or self-employed professional with regular income can apply for a KVB Personal loan
  • However, a non-salaried professional who earns more than the minimum income required for KVB Personal loan is also eligible for this loan.
  • The KVB Personal loaneligibility amount is decided after taking into account the net income after deduction of the EMI’s  of other loans, if any and it should amount to a minimum of 25% of the applicant’s gross pay.

Eligibility

Eligibility of Bon Voyage
 

  • The applicant must be an Indian citizen residing in India.
  • If the applicant is a salaried employee, then his/her net salary should be atleast1.20 lakhs per annum.
  • A salaried applicant, at the time of availing the KVB Personal loan must produce an undertaking letter by his/her employer to deduct monthly installments directly from the applicant’s salary and pay the bank.

Eligibility of Insta loan
 

  • The net salary of the individual after the deduction of the KVB Personal loan EMI should stand at a minimum of 25% of the gross pay.
  • The employees should be a permanent employee. Temporary employees or interns are not eligible for this loan.
  • The employer of the applicant must give an undertaking letter stating the deduction of the EMI from salary.
  • The applicant must accept that in case of VRS, dismissal from services or resignation the outstanding dues will be revived from the applicant’s terminal benefits or from the guarantor.

Types of Personal Loans

Karur Vysya bank extends personal loans under various categories, depending upon the nature of expenses for which the KVB Personal loan is being availed. The categories are:


Bon Voyage: Through this loan, Karur Vysya bank provides funds to individuals who wish to travel abroad for business purpose or pleasure.


Features:
 

  • It’s a personal loan designed only to fund travel and cannot be used for any other purpose.
  • KVB offers Personal Loan of a maximum amount of Rs.5 lakhs
  • The KVB Personal loan can be availed for a maximum tenure of 36 months i.e. 3 years.
  • The applicant must submit a Demand Promissory Note (DPN) as primary security.
  • Generally, a collateral security is not required in this case. However, it’s left at the discretion of the sanctioning authority.
  • Similar to above, a guarantor is optional in this case. However, if the sanctioning authority demands a guarantor, then the guarantor has to be the applicant’s relative with sound credit-worthiness.
  • The bank charges a RS.500 or 0.30% of the KVB Personal loan amount, whichever is higher, as processing fee charges.

​​Insta loan: Insta loan is a KVB personal loan extended to the salaried employed of reputed institutions, PSU’s, Govt. undertakings in order to enable them to meet sudden medical, personal or educational needs. This loan is extended in the form of regular installments.


Features:

A permanent employee with a confirmed service of minimum two years and an unexpired service of 1 year can apply for this personal loan. However, the applicant must have had good credit worthy relationship with any other bank he/she holds an account with.
 

  • The bank sanctions a maximum loan amount of Rs.10 lakhs for applicants in the executive cadre and a maximum of Rs.5 lakhs for the non-executive cadre. However, the maximum loan amount cannot extend the applicant’s 12 month gross salary.
  • The bank allows the loan for a maximum period of 72 months. The applicant has to pay off the loan within this period by ways of Equated Monthly Installments (EMI).
  • The applicant must submit a Demand Promissory Note (DPN) as primary security for banks to offer Personal loans
  • A collateral security in the form of personal undertaking by the applicant’s employer must be submitted at the time of loan application.
  • The bank charges RS.1500 for applicants in the executive cadre and Rs.1000 for the non-executive cadre as processing fee charges. These charges are exclusive of service tax. The service tax and other surcharges, as applicable will be levied over the above mentioned charges.

Swarnamitra: Swarnamitra is a loan issued against one’s gold. The bank understands the value of one’s assets and hence, provides the real worth of it. An individual can put his/her asset to use with the help of Karur Vysya bank’s Gold Loans at times of need.


Key features of Swarnamitra:
 

  • It is a short term loan made available to the applicant in the form of an overdraft facility.
  • This type of loan can be availed only for personal usage. The applicant cannot use the funds for commercial purpose.
  • Only individuals owning Gold jewelry are eligible for this loan.
  • The bank issues a minimum of Rs.1 lakh as loan. However, the maximum loan amount limit is set at Rs.20 lakhs. Generally, that’s the fixed limit but exceptions are made based on the credit worthiness of the applicant. Individuals with good financial records can be sanctioned a higher amount of loan, solely at the bank’s discretion.
  • The applicant must gold jewelry which is a minimum of 22 carat purity. However, Gold ingots issued by the various banks can also be kept as security.
  • Generally, a collateral security is not required in this case. However, it’s left at the discretion of the sanctioning authority.
  • Similar to above, a guarantor is optional in this case.
  • The bank gives a repayment period of 12 months in case of the overdraft facility. However, Renewal can be applied for, which again is left at the sole discretion of the sanctioning authority.
  • The bank charges 0.50 per loan of Rs.100 as loan processing fee charges. These charges are inclusive of appraisal charges.

An applicant before applying for Swarnamitra should remember that:
 

  • Interest is to be paid monthly and one can also calculate EMI for KVB Personal loan
  • The applicant if chooses to renew the existing loan, then the withdrawal rate will be based upon the then prevailing gold rates as per the market.
  • Only individuals owning gold jewelry can apply for this loan.
  • The jewelry once deposited as security can be exchanged during the loan tenure.
  • If the applicant fails to pay the decided on EMI’s thus making his/her overdraft account irregular, the bank reserves the right to apply all the provisions like recovery of loan amount by auction applicable  to jewel loan.

IPO funding: This loan is designed to cater to the needs of individuals or group of individuals wishing to invest in Initial public offerings (IPO) of a company.


Key Features of IPO funding:
 

  • It can be applied for by an individual or by a group of individuals. However, the maximum no of persons is set at 3.
  • It is a short term loan.
  • The funds released from such loans can only be used for purchase of equity shares of select companies. The applicant cannot use these funds for any other purpose
  • The bank issues a minimum of Rs. 25000 as loan amount and a maximum of Rs.10 lakhs.
  • The net salary of the individual after the deduction of the EMI should stand at a minimum of 50% of the gross pay.
  • The bank allows repayment tenure for KVB Personal loan of maximum 120 days.
  • The applicant must submit a Demand Promissory Note (DPN) or the pledge of shares allotted as primary security.
  • Generally, a collateral security is not required in this case. However, it’s left at the discretion of the sanctioning authority.
  • Similar to above, a guarantor is optional in this case, left solely at the discretion of the sanctioning authority.
  • The bank charges 1.00% of the loan amount as loan processing fee. However, the processing fee cannot get lower than Rs.250 and cannot exceed Rs.1000.

Before applying for the loan, the applicant must adhere to the below mentioned terms & conditions:
 

  • The applicant should have a running savings account with KVB. The account should be at the branch where he/she has applied for the loan. An applicant with an account at some other KVB cannot apply for the loan.
  • The applicant should have a running demat account either with the bank or any other approved depositories, such as Kotak bank ltd, Karvy consultants etc.
  • The name of the applicant should appear in the same format in all the documents i.e the loan application form, savings account, demat account, share application form/bid form etc.

Quick loan: This loan is specially designed for meeting an individual’s personal or business needs.


Key Features of quick loan:
 

  • This loan can be availed for short term as well as long term.
  • This loan also provides secured overdraft facility.
  • This loan is designed only for individuals.
  • The bank issues a maximum loan amount of Rs. 5 Lakhs.
  • The net pay of the individual is not taken into consideration in this case.
  • This loan provides for repayment of the loan in two ways. The applicant can either pay the loan amount in equal installments payable every month or can choose to make a lump sum payment of the amount at the end of the validity period of the loan.
  • The individual has to provide fully paid KVP’S/NSC’s or State & Central Government bonds as primary security at the time of availing this loan.
  • Generally, a collateral security is not required in this case.
  • Similar to above, a guarantor is also not required in this case.
  • The bank charges 0.30% of the loan amount as processing fee charges.

Few points to be remembered before availing this loan:
 

  • For every overdraft facility that the individual undertakes, he has to pay a substantial amount of interest.
  • In case the borrower wishes to renew the loan, then the rate of interest on overdraft will be revised
  • Overdraft facility cannot be extended for more than a year’s time.
  • Loans cannot be taken for minors. The applicant must be of the rightful age.
  • The applicant cannot submit LIC policies as collaterals.

Good Health: It’s a personal loan extended towards individuals requiring paying huge medical bills. This loan comes into use for medical expenses arising out of sickness or accidents.


Key Features of good Health:
 

  • This is an installment loan. An applicant must pay off the loan amount in equal installments.
  • The funds availed from this loan can be used only for medical purpose. However, the funds can be used by the applicant himself or by the applicant’s relative.
  • If the hospitalization charges exceed Rs. 0.50 lakhs, this loan can be applied for.
  • The bank issues a loan of minimum amount of Rs.0.50 lakh to a maximum of Rs.1.50 lakhs.
  • The bank issues this loan divided at a repayment period of 36-48 equal installments.
  • No processing fee is charged by the bank.
  • The applicant must issue a DPN as primary security. A collateral security in the form of NSC’s, KVP’s or term deposits amounting to 50% of the loan value should be provided.
  • The loan amount is disbursed directly to the hospital. However, the bank has a list of certain hospitals. Loan can be extended only towards treatment at the specified hospitals.
  • The amount of loan depends upon the profession of the individual. In case of employees, the loan amount will be set at twice the net salary or the cost of treatment, whichever is low. However, the maximum amount is set at Rs.1.50 lakhs.
  • In case of businessmen, industrialists and others, the loan amount is set at twice the annual income as certified by a CA or the cost of treatment, whichever is low. However, the maximum amount is set at Rs.1.50 lakhs.
  • In case of professionals, the loan amount is twice the net annual income as certified by a CA or the cost of treatment, whichever is low. However, the maximum amount is set at Rs.1.50 lakhs.

KVB Happy Kisan Loan

The KVB Happy Kisan loan is an agricultural loan which given to farmers so that they can meet their crop cultivation everyday expenditure as well as any expenses which are personal. The features of the loan and the relevant personal loan requirements are as listed hereunder:
 

  • The KVB Personal Loan amount eligibility includes farmers who own their own farm land and are recommended to avail a loan by an approved Supply Chain agent
  • The loan can be utilized for meeting short-term expenses related to crop cultivation or for expenses which are personal
  • The crops whose cultivation costs are borne by the loan can be all variants of the crops which are grown in the respective areas
  • The amount of loan granted would depend on the area of the land held by the farmer, the crops cultivated and the approved scale of finance
  • The loan is a guaranteed loan which requires a third party guarantee and the guarantee of the approved Supply Chain agent who is recommending the farmer for the loan
  • As the primary security, the crops which are grown and which will be grown on the farmer’s farm land would have to be hypothecated to the bank
  • A collateral security is also required if the sought amount of loan exceeds Rs.50, 000. The collateral would be an equitable mortgage of the agricultural land of the beneficiary
  • The repayment is done in lump sum and not in instalments and hence the repayment period would have to overlap the crop’s harvesting and marketing period. However, the maximum tenure allowed is 15 months.

KVB Personal Loan Interest rates

The bank has changed the rate of interest computation on its Personal Loan schemes from this new financial year. The KVB Personal Loan interest rate is now linked to the bank’s MCLR. The rate of MCLR as computed by the bank is as follows:
 

MCLR Category

Rate of MCLR

Period for which the computed MCLR would be applicable

Overnight MCLR

9.85% per annum

1 day and above but less than 1 month

MCLR for a one month period

9.85% per annum

1 month and above but less than  3 months

MCLR for a three month period

9.85% per annum

3 months and above but less than 6 months

MCLR for a six month period

9.95% per annum

6 months and above but less than one year

MCLR for a one year period

10.05% per annum

1 year and above


Based on the above MCLR rates, the interest ratefor Personal Loans are determined. The rates of interest on the variants of the KVB Personal Loans which are offered by the bank are as follows:
 

Type of loan

Rate of interest

Secured Personal Loan

MCLR for a one year period + 3.85% = 10.05% + 3.85% = 13.90%

Unsecured Personal Loan

MCLR for a one year period + 6.35% = 10.05% + 6.35% = 16.40%

Fully secured Bon Voyage Loan

MCLR for a one year period + 6.35% = 10.05% + 6.35% = 16.40%

Partly Secured Bon Voyage Loan

MCLR for a one year period + 7.85% = 10.05% + 7.85% = 17.90%

IPO Funding Loan

MCLR for a one year period + 8.50% = 10.05% + 8.50% = 18.90%

Karur Vysya Bank Quick Loan

MCLR for a one year period + 3.60% = 10.05% + 3.60% = 13.65%

KarurVysya Bank Insta Loan Floating Rate of Interest

MCLR for a one year period + 3.85% = 10.05% + 3.85% = 13.90%

KarurVysya Bank Insta Loan Fixed Rate of Interest

MCLR for a one year period + 3.60% = 10.05% + 3.60% = 13.65%


Fees and Charges

There are certain fees and charges which are payable by the borrower for availing the Personal Loan of any variant from the Karur Vysya Bank. While the documentation charge depends on the amount of loan availed, the other two charges namely the Processing charge and the amendment charge is a flat rate of the amount of loan availed irrespective of the quantum of loan availed. Here are the fees and charges of the loan as charged by the bank.
 

Category of charge

Rate

One time processing charge

Ranges from 0.40% to 1% of the amount of loan sanctioned

One time documentation charge for amounts above Rs.10 lakhs and up to Rs.25 lakhs

Rs.1000

One time documentation charge for amounts above Rs.25 lakhs and up to Rs.50 lakhs

Rs.2000

One time documentation charge for amounts above Rs.50 lakhs and up to Rs.100 lakhs

Rs.3000

Documentation

 

  • Signed Application form with self-attested photograph: An applicant, at the time of applying for a KVB Personal loan must submit the KVB Personal loan application form duly filled with his/her true information and a signed photograph.
  • Identity Proof: Copy of Passport / Voter ID card / Driving License. Any one of the document can be submitted as a valid Identity Proof because all the listed documents have the individual’s photograph along with his or her name against the photograph proving the identity of the applicant. Required in case of both salaried and Non-salaried employees.
  • Address Proof – Copy of Ration Card / Electricity or Telephone Bill / Rental Agreement / Passport. The applicant needs to submit any one of the afore-mentioned documents which state the correct address of the applicant needed for the verification process of the bank. However, the documents should not be more than 3 months old.
  • Last 3 months’ bank statement or latest ITR or Form 16. These documents seek to verify the applicant’s income status prior to making the application for loan which also depicts the individual’s financial picture depicting the credit worthiness of the person. In case of salaried professionals, last three months bank statement, where the salary is credited. Required in the case of non-salaried professionals.
  • Latest Salary Slip or current dated Salary Certificate with latest Form 16 which is used to legally depict the current net salary of the individual and to check whether it matches the level of minimum net monthly income as lay down in the eligibility criteria checklist. Required in the case of salaried applicants.
  • Photographs: 2 passport size photographs in case of both salaried and non-salaried applicants.
  • Processing Fee Cheque: the bank charges a minimal amount for processing the KVB Personal loan. An applicant has to submit the same along with other documents at the time of KVB Personal loan application.
Karur Vysya Bank Personal loan
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The bank is very good and has really good schemes and services. This was my first experience with Karur Vysya and so far it was very good. I would recommend this bank to everyone. Very good!!

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Posted on: Jan 19 , 2017