A Takeover Loan for Home Loan for NRI Borrowers to Help Consolidate Their Debts

A loan scheme for NRIs for the balance of transfer of existing housing loan to Karur Vysya Bank.

Karur Vysya Bank (KVB) Gruhpravesh for NRIs Loan (Balance of Transfer Loan)

This umbrella home loan scheme helps NRI home loan borrowers to purchase a new home, home renovation/repair/extension, construction of home on an owned piece of land or transfer of home loan from private banks, public-sector banks, foreign banks, Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs), etc. to Karur Vysya Bank.

Features of Karur Vysya Bank Gruhpravesh for NRIs Loan

Why this Loan?

  • The Karur Vysya Bank Gruhpravesh for NRIs scheme is meant for NRI housing loan borrowers of other banks, NBFCs and HFCs who want to transfer their housing loan to Karur Vysya Bank. This scheme can help reduce the debt burden on the borrower, thereby acting as a consolidation loan, if the borrower gets better terms such as a lower interest rate on the new loan
  • This is a special scheme for NRIs holding an Indian passport who are working abroad and need a consolidation loan scheme

Loan Amount

  • The maximum loan amount sanctioned by the bank under this loan scheme depends on a case to case basis

Repayment

  • This loan must be repaid within 25 years. The bank offers a maximum moratorium period of 24 months under this loan scheme

Interest

  • As of October 2020, the interest rate applicable to this loan ranges from 7.45% to 9.55%

Eligibility

  • The borrower must be an NRI above the age of 23 years
  • The home loan to be transferred to Karur Vysya Bank must be availed in the Indian currency
  • The NRI borrower must have a co-borrower of the loan who is a resident Indian

Security Needed

  • The bank asks for the first charge of property financed by the bank and a co-obligation on the loan with a resident Indian
  • The bank may ask for a third-party guarantee to secure the loan

Margin Money (Borrowers Contribution to Total Cost)

  • The bank can charge anywhere from 10% to 30% as margin for this loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, a 20% margin means you will have to contribute Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing Charges

  • The bank charges up to Rs. 7,500 for processing this loan

Documents Needed

  • 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 and Banking proof related documents

Reference Facts

  • Karur Vysya Bank Website: www.kvb.co.in
  • Headquarters: Karur, Tamil Nadu
  • Call Centre Number: +91 44 3072 1916