Karnataka Bank offers the personal loan only to the salaried individuals at an interest rate of 12.70% up to a maximum of Rs.5 lac, The maximum loan amount limit is quite low if compared with the peer South Indian Bank offering loans up to Rs.25 lac.
The Karnataka Bank offers a repayment tenure of as long as 60 months at maximum and the foreclosure charges in case of prepayment of loan are Nil.
The processing charges are 0.50% of the loan application and that is quite competitive against the processing fee of 2% of the loan amount by the South Indian Bank.
Karnataka Bank is a good fit for you if?
If You are salaried–Unlike Bank of Baroda and South Indian bank who provides personal loans to self employed individuals as well, the Karnataka Bank offers personal loans only for the salaried individual with a minimum 3 years of service.
If You’re Looking for a repayment tenure upto 60 months – The Karnataka Bank offers personal loan with a repayment tenure upto a maximum of 60 months. While some other peers in the industry like Central Bank of India allows upto a maximum of 48 months.
If you want to avail Nil prepayment charges – Karnataka Bank do not charges for the foreclosure of loan, So if you choose to pay your loan early you will not bear any extra payments. Some Banks like South Indian Bank charges upto 2%-4% of outstanding loan amount in case of preclosure of loan.
Karnataka Bank Personal Loan at a glance
|Annual Interest Rate||12.70%|
|Loan Term||Upto 60 months|
|Loan Amount||Upto Rs.5 lacs|
|Time of Funding||–|
Karnataka Bank offers personal loan only for the salaried individuals upto a maximum of Rs.5 lacs. The interest rate charged by the bank is 12.70% per annum. The maximum loan repayment tenure can go upto 60 months.
Unlike the peer South Indian Bank charging 2%-4% for preclosure of loan, the Karnataka Bank do not charges for the preclosure of loan.
Why Choose Karnataka Bank ?
Longer Repayment Tenure upto 60 months – The Karnataka Bank offers a personal loan with a repayment tenure flexible upto 60 months. This is longer than the offering of Central Bank of India and Federal Bank offering maximum 48 months for the repayment.
No prepayment charges- The bank do not charges on the preclosure of loan, Whereas some of the banks like South Indian Bank charges 2%-4% of outstanding loan amount in terms of prepayment charges.
What to watch out for?
Do not lends to self employed individuals– Karnataka bank offers personal loan only to the salaried individuals. It do not lends for the personal finance of self employed individuals ; whereas South Indian Bank and Bank of Baroda also provide personal finance to the self employed individuals as well.
Higher interest rate – Karnataka bank charges 12.70% per annum rate of interest on the personal loans. In comparison its competitor South Indian Bank charges interest on personal loan within a range of 11.45%-11.65%. So the interest rate charged by the Karnataka Bank Is 1% higher than the South Indian Bank.
Compare Karnataka Bank Personal Loans to Other Banks :
|Bank Name||Karnataka Bank||Bank of Maharashtra||South Indian Bank|
|Typical APR||12.70%||11.75%-12.75%||11.45% – 11.65%|
|Loan Term||Upto 60 months||Upto 36 months||Upto 12-60 months|
|Maximum Lending Amount||Upto Rs. 5 lac||Upto Rs. 1.5 lac||Upto Rs. 25 lac|
|Processing Fee||0.50% of the loan amount.||1% of loan amountRs.1000 min.||2% of the loan amount.|
|Time to Funding||–||–||–|
The Karnataka Bank offers personal loans to the salaried Individuals at 12.70% per annum. The interest rate charged by the South Indian Bank is comparatively low at 11.45%-11.65%, While the interest rate charged by the Bank of Maharashtra is 11.756%-12.75%.
The maximum repayment loan tenure of personal loan with Karnataka bank can go upto a maximum of 60 months, Whereas the Bank of Maharashtra restricts the maximum loan repayment tenure to 36 months.
The maximum loan amount provided as personal loan is Rs.5 lac by Karnataka bank ,which is higher than the Bank of Maharashtra offering Rs.1.5 lac at maximum and quite lower than the offering of South Indian Bank at Rs.25 lac. The Karnataka Bank charges a processing fee of 0.50% of loan amount and the other two peers charges 1%-2% of loan amount respectively.
The preclosure charges are Nil with the Karnataka Bank and Bank of Maharashtra, while the South Indian Bank is charging 2%-4% of outstanding amount in case of prepayment of loan.
Am I Eligible?
- Applicant should be a resident Indian.
- Minimum age of the borrower should be at least 21 years at the time of loan application.
- Maximum age of the borrower should not exceeds 65 years at the time of final repayment.
- Salaried govt./corporate employees/ employees of listed companies, schools, colleges or university having a minimum 3 years of service.
- Co-obligation of solvent party / co-employee who should be a permanent employee of reputed companies, schools, colleges or universities.
- Liquid security of LIC policies(SV), NSC, deposits to the extent of 25% of the limit in case loan amount exceeds Rs.3 lac.
Karnataka Bank offers Salary Loan to the Salaried govt./corporate employees/ employees of listed companies, schools, colleges or university having a minimum 3 years of service. The maximum loan amount can be upto 10 times of salary with a maximum cap of Rs.5 lac. The repayment loan tenure can be upto 60 months.
The prepayment charges are Nil in case the borrower pays off the loan early and processing charges are 0.50% of the loan amount.
Documents required for Salaried applicants :
- KYC Documents
- Income proof
- Last 6 months salary slip.
- Form 16/ letter from employer.
- Last two year ITR.
- Last 6 months bank statement.
- 3 passport photographs.
- Any other document which may be required from case to case.
Karnataka Bank Personal Loan Rate of Interest
|Personal Loan Type||Applicable Interest Rate|
How to Apply for Karnataka Bank Personal Loan?
- Click on ”APPLY NOW” button.
- Fill up the necessary details :
1. Required Loan Amount.
2. Objective of your loan.
3. Your monthly income.
4. Select the salaried or self-employed option.
5. Your name, email-id, contact no. etc.
- Press ”SUBMIT” to continue.
At online portal of Karnataka Bank.
You can apply for Karnataka Bank personal loan online through their website by inputting some basic information along with your loan requirements.
- To apply online for a Karnataka Bank personal loan click here.
- Fulfill all the details like your monthly income, loan amount required, purpose and the contact details and press the “Submit application” button.
At nearest Karnataka Bank branch :
To locate a Karnataka Bank branch near you click here. Enter your address and you will find a list of the branches available near you.
- You can visit the nearest Karnataka Bank branch with the necessary documents and ask for an application form for personal loan.
- Attach all the necessary documents and re-check the application form for confirmation.
- Submit the application form along with the documents to the Bank Officer.
After I Applied?
Check loan status online:
- You can check the status of your loan application online by following the steps given below.
- To check the status of your loan application online click here.
- Provide your application tracking no.along with your email id or phone number and get the status of your loan application.
Fees & Penalties
|Type of Charges||Applicable Charges|
|Processing Charges||0.50%of the loan amount|
|Loan Cancellation Charges||–|
The Karnataka Bank charges 0.50% of the sanctioned loan amount as the processing fee for loan application processing. The peers like South Indian Bank charges upto 2% for the same. Karnataka bank also waives off the prepayment charges for its personal loan customers.
To which MCLR this personal loan is linked with?
Karnataka bank has linked the personal loan to Its annual MCLR. Which is 8.95% at the moment.
Do the bank also finance the loan to self employed?
No, the bank do not provides personal loans to the self employed Individuals. Karnataka bank only gives personal loans to the salaried individuals.