If you’ve got questions, we have answers!
FAQs
A Home Loan is an amount of money that a person borrows from a financial institution at a certain rate of interest for a particular number of years (tenure), which is to be paid back in equated monthly instalments (EMI). To cover the risk of the financial institution, the property for which the loan is taken as a security.
There are different types of Home Loans. At Karza House, we provide
Home Loans for Ready to Move-in, Under construction and resale homes
Home Loan Balance Transfers (which means, the loan can be shifted from a different financier to Karza House resulting in savings for the customers)
Top-up on existing Home Loans for renovating or improving your current home.
Loans for Land/Plot Purchase
Karza House Home Loans are designed to enable you to buy your dream home. At every step, we keep our customers’ needs at the centre. This speaks for itself in our home loan features
Low interest rates as low as 8.64% p.a.
Instant in-principle Sanction
Quick and hassle free disbursal
Special features like EMI Break and Parallel Funding
With EMI Break, take a pause and prioritize your expenditures. We are here to share your burden by giving you an EMI break when your monthly expenses are impacted for factors and events like festivals, holidays, insurance premiums, taxes, school fees of your children, to name a few, at pre-agreed timelines.
Relaxed Down-Payments, with Parallel Funding
The first step is often the most difficult part and we are here to make it easy for you. Don’t worry about arranging huge down payments for owning a property. At Karza House, we bring you closer to your dream home. Pay your part on a pro-rata basis, rather than paying all at once.
Watch this space for more innovative home loan features.
Step 1: Submit your Application
The loan application you submit will consist of duly filled loan application form, proof of income, proof of identity and address.
Step 2: Application Evaluation and Loan Sanction
Our internal team immediately gets to work for the evaluating the application and processing it further for the sanctioning of the loan.
Step 3: Property valuation
Once the property papers are shared, & legal technical valuation of the property is done to see if all is in order and approve the disbursal of the loan. Of course, this step gets much easier when you’re buying a home from an approved project.
Step 4: Loan Disbursal
Post these approvals, signing the loan agreement takes place, leading to disbursal of the loan
A financial institution undertakes certain risks while lending money to borrowers, so for prudent lending, the institution checks the borrower’s repayment capacity through his/her savings, income, age, qualifications, nature of work, any loans currently served, etc. This is called Credit Evaluation and determines the loan eligibility comprising of the loan amount, tenure of the loan and the rate of interest.
A financial institution empanels agencies for objective valuation of the property it takes against the loan as security. The valuation is based on its age, usage, legal documentation, condition as well as geographical location. Market conditions also come into play, including whether there is a high demand for that particular type of property in the area in which it is located.
Registration of a property includes necessary stamping and paying of registration charges (may vary from state to state) for a sale deed and getting it recorded at the sub-registrar’s office of the concerned jurisdictional area.
Processing fee is a one-time charge to be paid by the borrower to the financial institution to covers the cost incurred to process a loan application.
A loan sanction letter is issued by a financial institution post evaluation of an applicant’s creditworthiness and other details like KYC etc. This letter is proof of eligibility of a loan from the financial institution and mentions the main loan details like maximum loan amount, maximum tenure, type of rate of interest EMI amount and special conditions if any. A sanction letter with these conditions is valid for a specified period of time.
A Power of Attorney allows a person to grant another person the right to make decisions regarding the person’s assets, finances and real estate properties.
There are two types of power of attorney.
First, the ‘General Power of Attorney’where a property owner confers ‘general’ rights. The rights include but are not limited to sell, lease, sub-lease etc.
Second, is the ‘Special Power of Attorney’wherein only a specific right is given by the owner to the chosen person.
The EMI is the amount of money a borrower pays back to a financial institution on a monthly basis towards the loan availed. It comprises of 2 components – the principal and the interest. So with every EMI, the borrower pays back a portion of the loan amount as a principal and a certain amount of interest. The EMI amount remains constant and by the end of the tenure, the borrower has paid back both principal and interest amount in full.
Pre-EMI is the interest amount paid by the borrower till the time final disbursement is pending and EMI is initiated. It is the interest on the amount of the loan disbursed and is payable every month from the date of each disbursement up to the date of commencement of the EMI. Pre-EMI is mostly applicable in cases where Under Construction property is being purchased on loan
The time period (in months or years) for which a financial institution lends the money to a borrower. The tenure may be different from person to person.
APF stands for Approved Project Funding.
Karza House identifies projects by certain developers and builders and evaluates basis the properties’ legal and technical evaluation. If a project qualifies the necessary requirements, it’s included in the APF master of Karza House .
The TAT(turn around time) for a loan disbursal, is lesser, where a project is already an APF and the loan processing is much simpler.
Loan to Value (LTV) is the amount of loan divided by the total value of the property and is represented in %. A loan value of INR 75 lakhs for a property worth INR 1 Crore would mean 75% LTV.
Disbursement means paying out the loan amount to the borrower or the builder from which the borrower has bought the home. The disbursement can be either in full or in tranches depending on the type of home financed (tranches are common for under-construction properties) and the terms agreed between the financial institution and the borrower.
A welcome letter is sent by a financial institution once a customer is fully onboarded. The welcome letter consists of the most important terms and conditions (MITC), Repayment Schedule, Schedule of Charges and all important loan details.
A loan account statement details out all the transactions completed in a particular loan account date by date. It also shows the outstanding balance due, the interest rate charged on that outstanding balance and any fees/charges incurred. However, the outstanding balance as reflected in SOA may not be the amount that you have to pay to close the account
Most Important Terms and Conditions details out the Loan details, repayment schedule, schedule of charges and any other relevant details of a loan account which a borrower must know. It is available on both website as well as on customer portal.
An Interest Certificate is a document issued by the lender which details out the bifurcation of the Principal and Interest Amount paid towards a home loan account in a particular financial year.
The NOC, or No Objection Certificate, is a document that states that you have paid all the EMIs and cleared all other outstanding loan dues and is issued by the company post the closure of the loan account. Please note that till the time NOC is not issued you may have liability towards Karza House.
You are required to submit the below-listed documents along with an application for loan foreclosure:Â
Â
- Proof of Identity:Â This can be verified using Officially Valid Documents (OVD) like your Aadhar Card, Passport, Voters Identity Card, or Driving License.
- Proof of last EMI payment:Â This can be shown using your recent bank statement reflecting the last EMI deduction.
- Source of funds for closure:Â A bank statement of the last 30 days and a sanction letter from a financial institution will be required.
- Loan documents
- Details of your loan account
As per Section 80C of the Income Tax Act, you can avail deductions up to Rs.1.50 lakhs on the principal amount repaid annually.
Â
Under Section 24 of the IT Act, taxpayers are also eligible for benefits up to Rs.2 lakhs on the interest repaid against a home loan annually. Under section 80EE, first time home buyers can claim addition deduction of Rs. 50,000 for value of property up to Rs. 50 lakhs and loan taken up to Rs. 35 lakhs.
The income tax law provides for the claim of pre-EMI interest also, called the pre-construction interest, as a deduction in five equal instalments starting from the year in which the property is acquired or construction is completed, over and above the deduction you are otherwise eligible to claim from your house property income. However, the maximum eligibility remains capped at Rs. 2 lakhs.
Yes, these expenses can be claimed as well, under section 80C but only in the year in which the expenses are incurred and within the overall limit of Rs. 1.5 lakhs.
Bounce charges are incurred if the EMI is not paid by the borrower on the due date.
Late Payment Charges, also referred to as ‘Penal charges’ are the charges incurred on the late payment of the outstanding dues in case of EMI bounce, by the borrower.
Swap charges are incurred by the borrower for changing the repayment instrument or change in the bank account for NACH Mandates.
Recovery charges are levied by the Company for any expenses incurred on the collection of overdue from the borrowers.
Foreclosure or prepayment charges are the charges a borrower incurs for partly paying/closing the loan ahead of its full loan term.
Charges paid by the customer as per State laws to register Finance Documents.
It is advisable to secure insurance for your loan as a proactive measure against unforeseen events like death, which could potentially lead to difficulties in meeting EMI obligations. Loan insurance serves as a voluntary risk mitigation tool, safeguarding the borrower in such situations.Â
The insurance contract is between the Insurer and the customers. The company plays a limited role in facilitating the insurance contract between customers and Insurers. It will be the Insurer’s responsibility to provide details and benefits to the customers.
Loan-linked Insurance covers a large amount of the loan liability. In any unforeseen circumstances like death, disability, hospitalization, and diagnosis of critical ailments, the Insurer can repay the loan liability through Insurance.
Credit-Life Insurance provides death cover for natural, accidental, and unnatural cause deaths. It also includes coverage for death due to Covid-19 and can be extended to co-borrowers. Customers can also avail the benefit of Section 80-C Income Tax deduction.
Survival-Benefit Plan is for critical illness insurance and provides additional cover for medical emergencies like heart attack, stroke, or cancer. Because these emergencies or illnesses often incur greater than average medical costs, these policies pay out cash to help cover those overruns where traditional health insurance may fall short. These policies come at a relatively low cost. However, the instances that they will cover are generally limited to a few illnesses or emergencies.
Charges paid by the customer as per State laws to register Finance Documents.
FAQs
It is a loan against fully constructed, freehold residential and commercial properties for personal or business needs. The funds obtained can be also used for other purposes including marriage, medical expenses, or child’s education etc. Please note that if you have an existing Loan Against Property (LAP) from other banks and financial institutions, you can transfer it to Karza House.
For new customers, you can get funding up to 80% of the property value depending on the segmentation and the property type. But, for existing customers, the principal outstanding on all existing loans and the Loan Against Property being availed should not cumulatively exceed 60% of the market value of the mortgaged property as assessed by Karza house.
Loan Against Property (LAP) can be availed by both, salaried and self-employed individuals for professional needs such as business expansion, debt consolidation, and various personal needs including homeownership, marriage, child education etc.
You can avail of Loan Against Property for a maximum term of up to 25 years subject to internal policies of a lending institution.
Yes, Loan Against Property (LAP) can be availed against fully constructed and freehold commercial properties.
Click here to know the documents required for a Loan Against Property. For applicable Fees & charges, refer Schedule of Charges.
- Business expansion
- Long-term working capital
- Purchase of equipment
- Holiday
- Education of children.
National Automated Clearing House (NACH) is a centralized structure created to make payments more accessible and cost-effective. It offers a fast and efficient clearing platform. The NACH debit mandate is used by Karza House to automatically deduct monthly instalments from your bank account for the loan availed.
There are two ways to cancel NACH mandate.
- You can log in to the Customer Portal and request to cancel the mandate through the Write to Us section.
- You can also send an email to customercare@karzahouse.com through registered email ID or call our Customer Care +91 8441005500 through a registered mobile number and place a request for NACH mandate cancellation.
Please note that you need to mention the Loan Account Number (LAN) in the request, and our team will connect with you within 48 hrs.
Â
FAQs
A Business Loan is an unsecured or a collateral-free loan that can be used for varied business purposes like funding your business expansion, purchasing long term assets or meeting working capital requirements. We offer you a stipulated loan amount without the need to pledge any collateral.
Ensuring steady business cash flow
Fund business expansion or diversification
Improve existing business set-up
Consolidate high-interest business debts
Boost working capital reserves
Hire a new workforce
Purchase and stock inventory
Buy new machinery, equipment, or software
Start your new business
With the Karza House Business Loan, you can avail higher loan amounts up to Rs. 50 lakhs, without the need for collateral. The application process is hassle-free with minimal documentation, and disbursal process is seamless and quick.Â
You can avail a loan amount up to Rs. 50 lakhs, the amount would be calculated based on your income and other parameters.
No, the business loan is an unsecured offering, and you only need to meet the simple business loan eligibility criteria to qualify for business financing.
The applicant should be a Sole Proprietor / Partnership firm / Private Ltd Co. / Unlisted Public Ltd Co. / LLP involved in the business of Manufacturing, Trading or Services. The age should be 21-65 years with minimum 3 years vintage of business operations.Â
FAQs
One of the primary benefits of opting for a home loan balance transfer is the suitable rate of interest offered by Karza House. Also, a borrower gets an added benefit of higher eligibility along with a Top-Up loan. In short, at Karza House, we enable utmost affordability and flexibility for repayment.
Once a customer applies for a Home Loan Balance Transfer with Karza House, it takes up to 7 days days to process the application and view the loan offer. You can visit our Karza House website and our representative will get in touch with you for all your information such as personal KYC, financial, employment details and existing property information.
There is no maximum amount for transfer. If you are eligible, your entire home loan outstanding balance can be transferred to Karza House.
Yes. The repayment tenor can be extended up to a maximum period of up to 20 years for a self-employed individual and up to 30 years for salaried customers, basis the eligibility and age of the borrower.
No, there is no mandatory requirements of a guarantor for a home loan transfer. However, it may be subject to internal policies of the lender.
Top Up Loans can tend to personal and professional needs like home furnishing, marriage, child’s tuition business expansion, etc.
Customers opting for a Balance Transfer of their Home loan can additionally avail of a top-up loan from Karza house subject to meeting the qualifying criteria.
You can avail a top up loan for a maximum term of 15 years
As a Top-Up Loan is a primarily a new loan, standard processing fees apply to it as well.
No, it is not mandatory to obtain Insurance. However, Insurance is a voluntary risk mitigation device that helps customers in multiple ways, such as securing the asset, helping in paying off the loan liability in an unlikely event.
The insurance contract is between the Insurer and the customers. The company plays a limited role in facilitating the insurance contract between customers and Insurers. It will be the Insurer’s responsibility to provide details and benefits to the customers.
Loan-linked Insurance covers a large amount of the loan liability. In any unforeseen circumstances like death, disability, hospitalization, and diagnosis of critical ailments, the Insurer can repay the loan liability through Insurance.
Health insurance aims to provide a defence against the hardship caused due to lack of income because of (a) Disease, (b) Accident, (c) Surgery and (d) hospitalization.
FAQs
A Plot loan is an amount of money that a person borrows from a financial institution to purchase a plot of land for the construction of a residential unit on the same. This loan is at a certain rate of interest for a particular number of years (tenure), which is to be paid back in equated monthly instalments (EMI).
There are a few conditions that need to be met for Plot loans,
Â
The residential plots for construction otherwise allocated by the builders are to be approved by Karza House.
The plot should be clearly identifiable and demarcated
Step 1: Submit your Application
The loan application you submit will consist of duly filled loan application form, proof of income, proof of identity and address.
Â
Step 2: Application Evaluation and Loan Sanction
Our internal team immediately gets to work for the evaluating the application and processing it further for the sanctioning of the loan.
Â
Step 3: Property valuation
Once the property papers are shared, & legal technical valuation of the plot is done to see if all is in order and approve the disbursal of the loan. Of course, this step gets much easier when you’re buying a home from an approved project.
Â
Step 4: Loan Disbursal
Post these approvals, signing the loan agreement takes place, leading to disbursal of the loan
A financial institution undertakes certain risks while lending money to borrowers, so for prudent lending, the institution checks the borrower’s repayment capacity through his/her savings, income, age, qualifications, nature of work, any loans currently served, etc. This is called Credit Evaluation and determines the loan eligibility comprising of the loan amount, tenure of the loan and the rate of interest.
A financial institution empanels agencies for objective valuation of the property it takes against the loan as security. The valuation is based on its age, usage, legal documentation, condition as well as geographical location. Market conditions also come into play, including whether there is a high demand for that particular type of property in the area in which it is located.
Registration of a property includes necessary stamping and paying of registration charges (may vary from state to state) for a sale deed and getting it recorded at the sub-registrar’s office of the concerned jurisdictional area.
Processing fee is a one-time charge to be paid by the borrower to the financial institution to covers the cost incurred to process a loan application.
A loan sanction letter is issued by a financial institution post evaluation of an applicant’s creditworthiness and other details like KYC etc. This letter is proof of eligibility of a loan from the financial institution and mentions the main loan details like maximum loan amount, maximum tenure, type of rate of interest EMI amount and special conditions if any. A sanction letter with these conditions is valid for a specified period of time.
A Power of Attorney allows a person to grant another person the right to make decisions regarding the person’s assets, finances and real estate properties.
There are two types of power of attorney.
First, the ‘General Power of Attorney’where a property owner confers ‘general’ rights. The rights include but are not limited to sell, lease, sub-lease etc.
Second, is the ‘Special Power of Attorney’wherein only a specific right is given by the owner to the chosen person.
The EMI is the amount of money a borrower pays back to a financial institution on a monthly basis towards the loan availed. It comprises of 2 components – the principal and the interest. So with every EMI, the borrower pays back a portion of the loan amount as a principal and a certain amount of interest. The EMI amount remains constant and by the end of the tenure, the borrower has paid back both principal and interest amount in full.
Pre-EMI is the interest amount paid by the borrower till the time final disbursement is pending and EMI is initiated. It is the interest on the amount of the loan disbursed and is payable every month from the date of each disbursement up to the date of commencement of the EMI. Pre-EMI is mostly applicable in cases where Under Construction property is being purchased on loan
The time period (in months or years) for which a financial institution lends the money to a borrower. The tenure may be different from person to person.
APF stands for Approved Project Funding.
Karza House identifies projects by certain developers and builders and evaluates basis the properties’ legal and technical evaluation. If a project qualifies the necessary requirements, it’s included in the APF master of Karza House .
The TAT(turn around time) for a loan disbursal, is lesser, where a project is already an APF and the loan processing is much simpler.
Loan to Value (LTV) is the amount of loan divided by the total value of the property and is represented in %. A loan value of INR 75 lakhs for a property worth INR 1 Crore would mean 75% LTV.
Disbursement means paying out the loan amount to the borrower or the builder from which the borrower has bought the home. The disbursement can be either in full or in tranches depending on the type of home financed (tranches are common for under-construction properties) and the terms agreed between the financial institution and the borrower.
A welcome letter is sent by a financial institution once a customer is fully onboarded. The welcome letter consists of the most important terms and conditions (MITC), Repayment Schedule, Schedule of Charges and all important loan details.
A loan account statement details out all the transactions completed in a particular loan account date by date. It also shows the outstanding balance due, the interest rate charged on that outstanding balance and any fees/charges incurred. However, the outstanding balance as reflected in SOA may not be the amount that you have to pay to close the account
Most Important Terms and Conditions details out the Loan details, repayment schedule, schedule of charges and any other relevant details of a loan account which a borrower must know. It is available on both website as well as on customer portal.
An Interest Certificate is a document issued by the lender which details out the bifurcation of the Principal and Interest Amount paid towards a home loan account in a particular financial year.
The NOC, or No Objection Certificate, is a document that states that you have paid all the EMIs and cleared all other outstanding loan dues and is issued by the company post the closure of the loan account. Please note that till the time NOC is not issued you may have liability towards Karza House.
You are required to submit the below-listed documents along with an application for loan foreclosure:Â
Â
- Proof of Identity:Â This can be verified using Officially Valid Documents (OVD) like your Aadhar Card, Passport, Voters Identity Card, or Driving License.
- Proof of last EMI payment:Â This can be shown using your recent bank statement reflecting the last EMI deduction.
- Source of funds for closure:Â A bank statement of the last 30 days and a sanction letter from a financial institution will be required.
- Loan documents
- Details of your loan account
Bounce charges are incurred if the EMI is not paid by the borrower on the due date.
Late Payment Charges, also referred to as ‘Penal charges’ are the charges incurred on the late payment of the outstanding dues in case of EMI bounce, by the borrower.
Swap charges are incurred by the borrower for changing the repayment instrument or change in the bank account for NACH Mandates.
Recovery charges are levied by the Company for any expenses incurred on the collection of overdue from the borrowers.
Foreclosure or prepayment charges are the charges a borrower incurs for partly paying/closing the loan ahead of its full loan term.
Charges paid by the customer as per State laws to register Finance Documents.
It is advisable to secure insurance for your loan as a proactive measure against unforeseen events like death, which could potentially lead to difficulties in meeting EMI obligations. Loan insurance serves as a voluntary risk mitigation tool, safeguarding the borrower in such situations.Â
The insurance contract is between the Insurer and the customers. The company plays a limited role in facilitating the insurance contract between customers and Insurers. It will be the Insurer’s responsibility to provide details and benefits to the customers.
Loan-linked Insurance covers a large amount of the loan liability. In any unforeseen circumstances like death, disability, hospitalization, and diagnosis of critical ailments, the Insurer can repay the loan liability through Insurance.
Credit-Life Insurance provides death cover for natural, accidental, and unnatural cause deaths. It also includes coverage for death due to Covid-19 and can be extended to co-borrowers. Customers can also avail the benefit of Section 80-C Income Tax deduction.
Survival-Benefit Plan is for critical illness insurance and provides additional cover for medical emergencies like heart attack, stroke, or cancer. Because these emergencies or illnesses often incur greater than average medical costs, these policies pay out cash to help cover those overruns where traditional health insurance may fall short. These policies come at a relatively low cost. However, the instances that they will cover are generally limited to a few illnesses or emergencies.
Charges paid by the customer as per State laws to register Finance Documents.
FAQs
It is a loan to finance the purchase of a new or existing commercial property. The funds obtained from this loan can be directed towards the construction, extension, or improvement of a commercial property.Â
All customers,salaried or self-employed NRIs (professional and non-professionals) can avail of this loan.Â
You can avail of a Commercial Property Loan for a maximum term of 15 years or till the age of retirement, whichever lower.Â
Click here to know the documents required for Commercial Property Loan. For applicable fees and charges, refer to Schedule of Charges
FAQs
Only professionally qualified Doctors pursuing independent medical practice or running a clinic are eligible to apply for the loan.
We offer a multi-purpose Professional Loan that can be used to meet professional purposes or certain financial obligations of doctors. You can use these funds for professional purposes, like hiring new staff, purchasing new technology, expanding your profession, etc.
The Professional Loan for Doctors is available at a competitive rate starting from 12% p.a. to provide a cost-effective financing solution.
Click here to know the documents required for Commercial Property Loan. For applicable fees and charges, refer to Schedule of Charges
The maximum loan amount available through our Professional Loan is ₹5 to ₹35 Lakhs subject to certain factors.
The minimum tenure of a Professional Loan tentatively ranges between 12 and 60 months subject to certain factors.
The eligibility for a Professional Loan is influenced by various factors, including but not limited to:
Â
- Degree & College (MD, MBBS, MDS & BDS)
- Ownership status of Clinic
- Work experience
- Geographic location of the practice
- CIBIL score
- Other terms and conditionsÂ
The documents required are:
Â
- Identity and Address Proof
- Bank statement of last 6 months
- Qualification proof of the highest professional degree
- Medical Registration Certificate
- Property Ownership Proof (Residential/Commercial)