Karur Vysya Bank NRI Home Loan

A KVB NRI Home Loan is a special loan aimed at helping NRI's to buy, build, or fix up homes back in India. This loan comes with benefits like low-interest rates, a long time to pay back, and support from the bank to make the process smooth. Thus, Urban Money has crafted this page so that you can learn everything about the scheme. 

Feature & Benefits of KVB NRI Home Loan

Here are some of the key features and benefits:

• Offers affordability through competitive rates.
• Loans up to Rs. 300 Lakhs to cover significant property investments.
• Up to 25 years of repayment period, with options for repayment through remittances from abroad.
• For buying, constructing, renovating, or extending properties.
• Eligibility for tax deductions on principal and interest under Sections 80C and 24.
• Option to transfer existing home loans for potentially lower rates.
• The choice between floating and fixed interest rates to suit borrower needs.
• Simplified process for a hassle-free application experience.
• Specialised help desks and customer support for NRIs and PIOs.

Types of KVB Home Loans for NRIs

Here are the main types of KVB home loans available for NRIs:

• KVB NRI Home Loan for Purchase: This loan is for NRIs who want to buy a ready-to-move-in or under-construction property in India.
• KVB NRI Home Construction Loan: For those looking to construct a house on a plot they own. This loan covers the cost of constructing a residential property.
• KVB NRI Plot Loan: This loan is specifically designed to purchase a plot of land to construct a house.
• KVB NRI Home Improvement Loan: This loan is for renovating or improving an existing property, including repairs, additions, and interior decorations.
• KVB NRI Home Extension Loan: If you want to add more space to your existing home, this loan can finance the construction of additional rooms or the expansion of existing structures.
• KVB NRI Home Loan Balance Transfer: This facility allows NRIs to transfer their existing home loan from another bank to KVB to benefit from lower interest rates or better service terms.

Purpose of KVB NRI Home Loan

The purpose of Karur Vysya Bank (KVB) NRI Home Loans is to meet various housing-related financial needs of Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). These purposes include:

• Financing the purchase of ready-to-move-in homes or apartments in India.
• Funding the construction of a house on a plot owned by the borrower.
• Loans for renovating or extending an existing property.
• Financing the purchase of a plot of land intended to construct a dwelling unit.
• Refinancing an existing home loan from another bank or financial institution to KVB.

KVB NRI Home Loan Interest Rates

The interest rates for KVB NRI Home Loans range from 9.00% to 11.05%. 

KVB NRI Home Loan Documents Required

For a Karur Vysya Bank (KVB) NRI Home Loan, applicants must submit a comprehensive set of documents to process their loan application. Here’s a brief list of the necessary documents:

• Completed and signed home loan application form
• Recent passport-sized photographs of the applicant and co-applicant(s)
• Valid passport and visa copies for NRIs/PIOs
• Overseas residence proof (utility bills, rent agreement, or bank statement showing overseas address)
• For salaried individuals: Please provide the latest salary slips for the past three months, your employment contract or work permit, and bank statements for the past 6 months.
• For self-employed individuals: Proof of business existence, income tax returns for the last two years, and bank statements for the past six months.
• Copy of the title documents of the property, approved plan, and other relevant property documents.
• Documentation supporting the NRI/PIO status, such as work permit, employment contract, etc.
• Credit report from the country of residence
• Details of existing loans, if any, along with repayment track record
• Guarantor forms, if required, duly filled and signed.

KVB NRI Home Loan Eligibility Criteria

Here is a table that will help you look into eligibility for a KVB NRI home loan.

Fees and Charges for KVB NRI Home Loan

For Karur Vysya Bank (KVB) NRI Home Loans, various fees are applicable; some are:

• Processing Charges:
  • 0.25% + GST of the loan amount for loans up to Rs. 25 Lakhs.
  • Rs. 10,000 + GST for loans between Rs. 25 Lakhs and Rs. 75 Lakhs.
  • Rs. 20,000 + GST for loans above Rs. 75 Lakhs.
• Margin:  20%
• Interest rate: Minimum 9.00% to Maximum 11.05%

Tax Benefits of KVB NRI Home Loans

• NRIs (Non-Resident Indians) can avail of tax benefits on home loans in India under the Income Tax Act of 1961. If you have a KVB NRI Home Loan, here are the key tax benefits you might be eligible for:
• Interest paid on the home loan can be claimed as a deduction under Section 24 of the Income Tax Act. The maximum deduction available is up to ₹2 lakh for a self-occupied property. There is no upper limit for the interest deduction on a let-out property, but it’s subject to certain conditions.
• The amount paid as principal repayment is eligible for deduction under Section 80C of the Income Tax Act. The maximum deduction limit under this section is ₹1.5 lakh, which also covers other investments and expenses like life insurance premiums, Public Provident Fund (PPF), and children’s tuition fees.
• The amount paid for stamp duty and registration charges is also eligible for deduction under Section 80C in the year these expenses are incurred.