Karur Vysya Bank Home Loan Interest Rate

Highlights on Karur Vysya Bank Home Loan Interest Rate

Interest Rate	8.10% – 11.70% per annum
Loan-to-Value Ratio (LTV)	75%-90%
Margin	10%-25%
Maximum Tenure	30 Years
Processing Charge	Rs. 2,500 to Rs. 7,500 + GST

The current home loan interest rate of Karur Vysya Bank ranges from 8.10% per annum to 11.70% per annum. Factors like the loan type, applicant’s employment profile, credit score, and others strongly influence the final interest rate. Karur Vysya Bank’s home loans are available at floating interest rates. Further, borrowers with floating home loan rates are also exempted from paying foreclosure/ part pre-payment charges.

Karur Vysya Bank Home Loan Interest Rates for Salaried vs. Self-Employed Individuals

Karur Vysya Bank’s home loan rate for salaried and self-employed individuals ranges from 8.10% to 11.70% per annum. The nature of an applicant’s employment and professional history play key roles in determining the final rate of interest. They communicate an applicant’s financial strength and repayment capacity, ultimately influencing the interest rate.

Karur Vysya Bank Home Loan Interest Rates – Scheme Wise

Karur Vysya Bank’s housing loan interest rates for different loan types are detailed in the table below:

Loan Product	Minimum Rate (p.a.)	Maximum Rate (p.a.)
Housing Loan / NRI Gruhapravesh	8.75%	11.70%
Housing Loan Topup	9.00%	11.30%

How to Calculate the Effective Interest Rate on a Karur Vysya Bank Home Loan?

Karur Vysya Bank’s effective home loan rate is calculated by making necessary adjustments to the repo rate. The final rate at which a loan is offered to an applicant also depends on their financial strength, credit ratings, professional history, and other factors.

List of Factors That Affect Karur Vysya Bank Home Loan Interest Rate and EMI

Multiple factors influence Karur Vysya Bank’s home loan percentage. These include:

• Repo Rate: Karur Vysya Bank’s home loan interest percentages are linked to the repo rate set by the RBI. Any change in the repo rate directly impacts the bank’s interest rates.
• Credit Score: Applicants with high credit ratings (typically above 750) attract low interest rates and affordable EMIs. Conversely, applicants with lower credit scores are offered high home loan percentages at Karuru Vysya Bank.
• Professional History: Borrowers showcasing consistent employment and stable income are offered home loans at affordable rates. Meanwhile, applicants with unstable incomes are charged higher rates on home loans.
• Down Payment: Down payment refers to the borrower’s portion of financing the property. A higher down payment means reduced risk for the bank, resulting in favourable interest rates.
• Loan-to-Value (LTV) Ratio: The LTV ratio is the percentage of the property’s value that a bank finances through a loan. The higher the ratio, the higher the interest rate. 

 

Impact on Karur Vysya Bank Home Loan EMI Calculations After the Repo Rate Cut by RBI

The Reserve Bank of India (RBI) announced the latest repo rate cut of 25 basis points on 7th February 2025. The RBI’s repo rate directly influences Karur Vysya Bank’s home loan interest percentage. An increase in the repo rate typically results in higher interest rates and vice versa.

The latest cut will likely result in reduced interest rates and higher EMI savings. Explore the impact of the newest repo rate cut on Karur Vysya Bank’s home loan percentage in the following example:

Case 1: Rs. 50-lakh home loan for 10 years

Loan Amount	50 Lakhs
Loan Tenure	10 years
Original Interest Rate	8.10% p.a.
EMI	₹60,928
Revised Interest Rate	7.85% p.a. (8.10 – 0.25)
EMI	₹60,268

For a home loan of Rs. 50 lakhs borrowed for 10 years, the latest repo rate deduction offers a monthly savings of Rs. 660 (60,928 – 60,268).

Case 2: Rs. 50-lakh home loan for 20 years

Loan Amount	50 Lakhs
Loan Tenure	20 years
Original Interest Rate	8.10% p.a.
EMI	₹ 42,134
Revised Interest Rate	7.85% p.a. (8.10 – 0.25)
EMI	₹ 41,356

For a home loan of Rs. 50 lakhs borrowed for 20 years, the latest repo rate deduction offers a monthly savings of Rs. 778 (42,134 – 41,356).

How to Get the Best Interest Rate on a Karur Vysya Bank Housing Loan?

Take a look at some effective tips to secure the best Karur Vysya Bank home loan interest rate:

• Apply Diligently: Loan borrowers are advised to apply for amounts that align with their repayment capacity. This allows for lower interest rates and faster approvals. 
• Maintain a High Credit Score: Borrowers with credit scores above 750 stand the best chance of achieving affordable loans. Timely bill payments and reducing outstanding debt are simple ways to improve credit rating. 
• Make High Downpayments: Contributing a larger upfront amount reduces the loan amount, lowering the bank’s risk and improving the chances of securing favourable interest rates.
• Low Debt-to-Income (DTI) Ratio: The DTI ratio tells the percentage of your monthly income used to repay debts. A lower DTI conveys high financial strength, allowing for lower interest rates and better loan terms.