Consolidation Loans from Karnataka Bank
Different loan schemes for debt consolidation from Karnataka Bank
Karnataka Bank Limited (KBL), simply known as Karnataka Bank, is a fast-growing private sector bank in India. The bank offers a wide range of retail, MSME and business banking services to its customers. The bank offers its retail customers a range of loans to suit their different needs.
Karnataka Bank Consolidation Loans
A Karnataka Bank consolidation loan helps customers pay off all their debts and consolidate them into one and repay it easily by choosing favourable terms.
Consolidation loans can be divided into two categories: secured loans and unsecured loans. Secured loans require the borrower to offer collateral i.e. an asset such as house, shares, fixed deposits, etc. for the loan. Some common examples of secured loans include loan against property, loan against term deposits, loan against securities, etc. Unsecured loans do not require the borrower to offer collateral and have a relatively high-interest rate when compared with secure loans. An example of an unsecured loan is a personal loan.
Consolidation loans make the lives of borrowers easier since the latter only have to think of making one repayment per month instead of worrying about making multiple repayments all through the month. The overall debt burden may also reduce since consolidation loans are usually chosen by comparing interest rates and repayment periods.
Please note here that Karnataka Bank does not label a specific loan as a consolidation loan. Instead, a few schemes can be used for the purpose of consolidating debts even if they are not directly labelled so. Here are some of the loan schemes offered by Karnataka Bank that you can avail as a consolidation loan:
- KBL Xpress Cash Loan (Personal Loan)
- KBL Suvidha OD (Secured Personal Loan)
- Gold Loan
- KBL Mortgage Scheme (Loan Against Property)
- KBL Lease N Cash (Loan Against Future Lease Rentals)
- KBL Home Top-up
We give you a brief introduction to each of these consolidation loans below. In addition, you have the option to click further and read in detail about each loan (the link takes you to another page on our website). This specific page has been specifically designed so that you can get all the information you need on that loan in an uncluttered and easy-to-read format.
Karnataka Bank KBL Xpress Cash Loan (Personal Loan)
This loan is specifically designed for salaried employees of govt. organisations and reputed private organisations to help them get funds to meet their urgent financial needs. This loan scheme can also be availed as a consolidation loan to pay off high-interest debts.
Features of Karnataka Bank Personal Loan
Why this Loan?
- The Karnataka Bank Personal Loan is meant for salaried employees of government units/institutions or reputed private organisations who need funds to meet their personal needs ranging from overseas travel expenses and wedding expenses to emergency medical expenses and debt consolidation
- This is a digital loan which means that there is zero paperwork involved. The bank also claims to disburse the loan amount within 10 minutes after application approval
- This is a collateral-free loan
Karnataka Bank KBL Suvidha Overdraft (OD) Scheme
This overdraft scheme is specifically designed for salaried employees or pensioners of govt. organisations and reputed private organisations to help them get funds to meet their urgent financial needs. This loan scheme can also be availed as a consolidation loan to pay off high-interest debts.
Features of Karnataka Bank Secured Personal Loan
Why this Loan?
- The Karnataka Bank KBL Suvidha OD scheme is meant for salaried employees or pensioners of government units/institutions or salaried employees of reputed private organisations who need financial assistance to meet their personal needs. The borrowers must hold an account with KBL to be eligible for this loan
- The overdraft facility can also be repurposed into a consolidation loan to pay off debts
Karnataka Bank KBL Gold Loan
This scheme helps borrowers access needed funds by pledging their gold jewellery to meet any financial needs such as expenses for a wedding, overseas travel, higher education, etc. as well as to consolidate high-interest debts. The maximum loan amount sanctioned by the bank under this loan scheme is Rs. 25 lakh capped at Rs. 5 lakh per account and a maximum of 5 accounts per borrower.
Features of Karnataka Bank Loan Against Gold Jewellery
Why this Loan?
- The Karnataka Bank KBL Gold Loan is meant for borrowers who want to get funds by pledging gold jewellery/ornaments to meet their financial needs
- This loan scheme can also be availed by borrowers as a consolidation loan to pay off their debts
Karnataka Bank KBL Mortgage Loan
This loan helps borrowers get access to funds by mortgaging their property to meet their urgent financial needs. Borrowers can avail this loan to purchase a new property, pay for renovation or repair of their home, child’s wedding expenses, dream vacation, medical exigencies, debt consolidation and so on.
Features of Karnataka Bank Loan Against Property
Why this Loan?
- The Karnataka Bank KBL Mortgage Loan is meant for borrowers who want to avail financial assistance by pledging their property to the bank to meet their urgent financial needs other than for capital market, trading or speculative purposes
- This loan can also be repurposed into a consolidation loan to pay off high-interest debts
Karnataka Bank KBL Lease N Cash Scheme
This loan helps property owners who have rented out their property to reputable establishments to get financial assistance to meet their personal needs. This secured loan can be used to meet expenses for overseas travel, medical exigencies, debt consolidation, etc.
Features of Karnataka Bank Loan Against Future Rent Receivables
Why this Loan?
- The Karnataka Bank KBL Lease N Cash Scheme is designed to help borrowers who have rented out their property to government units, semi-government units, public sector undertakings, financial institutions, reputed corporations, multinational companies, etc. to get funds to meet their personal needs
- Borrowers can also avail this scheme to pay off their high-interest credit card debts and loans, thereby consolidating their debts
Karnataka Bank KBL Home Loan Top-up
This top-up scheme helps KBL Apna Ghar, KBL Elite and KBL Home Comfort loan borrowers to get financial assistance for meeting their personal needs. In addition to being used to meet financial expenses directly related to the house such as home repair, home renovation or extension, this loan can also be used as a consolidation loan to pay off debts. Many borrowers also use this loan to pay for other personal expenses such as medical bills, a dream vacation, child’s education, etc.
Features of Karnataka Bank Home Loan Top-up Loan
Why this Loan?
- The Karnataka Bank Home Loan Top-up is meant for existing Karnataka Bank home loan borrowers who need assistance to meet financial needs for personal needs such as expenses for a wedding, education, domestic/overseas travel, debt consolidation, home extension, home repair, etc.
- The bank offers flexible loan tenures and competitive interest rates on this scheme
Important Note: Karnataka Bank may offer more consolidation loan options that are not yet published on the website. If you prefer we suggest that you get in touch with the nearest branch to check the loan schemes they offer. This will also help you get a custom quote since many loan schemes are need-based and certain charges such as application charges, service charges, strategic premium, etc. may be decided on a case-to-case basis.
Interest Rate for Karnataka Bank Consolidation Loans
- The interest rate applicable to these loans is defined as the sum of two factors namely, one-year Marginal Cost of Funds Based Lending Rate (MCLR) and (Strategic) Spread. As of October 2020, the MCLR of Karnataka Bank is 8.95%. The Spread factor is decided by the bank based on the loan type, quantum of loan and credit score of the borrower
Documents Needed for Individuals (Salaried and Self-employed)
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
- Income/Banking Proof for Self-employed Professionals/Self-employed Non Professionals: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.
Documents Needed for Proprietorship and Partnership Firms
- Loan Application Form duly filled and signed
- Partnership Deed and Partnership Registration Certificate
- ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Karnataka Bank Website: www.karnatakabank.com
- Headquarters: Mangalore, Karnataka
- Call Centre Toll-Free Number: 1800 425 1444