- Customers/units eligible to be classified under Priority Sector(MSE) only.
- Age Limit: 21 years and above.
- 12 months.
- Mortgage of properties.
- Guarantee of the spouse wherever feasible in the absence of which third party solvent guarantor.
- As per Overdraft guidelines.
- Minimum up to 33.33%
Purpose:
- For meeting business/ professional/Working capital needs.
Amount of Finance:
- Three times of the average annual income of last two years/50% of the market value of the property(40 % in case of industrial properties).
- Subjected to a minimum of ₹11 lakh and maximum of ₹100 lakh.
The above information is subject to terms and conditions.For more details, please contact the nearest Branch
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Frequently Asked Questions (FAQs) for KBL Mortgage OD
What is Mortgage OD?
Mortgage OD is the money borrowed from a bank on interest for meeting business/ professional/Working capital needs.
What is the tenure of Mortgage OD?
Maximum 12 months.
What are the eligibility conditions for availing Mortgage OD?
The OD facility will be offered to customers/units eligible to be classified under Priority Sector (MSE) only.
What security do I have to furnish?
- Mortgage of properties residential/ commercial (industrial and agriculture properties are not permitted).
- Guarantee of a suitable third party/family member, acceptable to the Bank.
What is a down payment/margin money?
Generally, banking & finance institutions finance upto 67% of the cost of the property bought. The remaining 33% of the amount is paid on an up-front basis, which is popularly known as the down payment/margin money.
How much margin money/down payment I have to give?
- In case of residential/commercial properties: 33%
- In case of already mortgaged properties, the surplus value over 110% of the existing liability against that property should be adequate for the limit sought keeping prescribed margin.
What are the fees charged by the bank?
Processing fee/upfront fee (Legal, Valuation and Background Information Report charges).
What is an EMI?
EMI or Equated Monthly Instalment is a fixed amount repaid by you to the bank on a specific date every month. The EMI's are fixed when you borrow money from the bank as a loan. EMI's are used to pay both interest and principal amount of a loan in a way that over a specific number of years, the loan amount is repaid in full to the bank along with interest.
What is EBLR?
EBLR stands for External Benchmark Lending Rate. Karnataka Bank has adopted 6 Months T-Bill (Treasury Bill) as the external benchmark to link its floating rate with effect from 01.10.2019.
