When filing for a housing loan, knowing the prevailing stamp duty charges of the location you must pay while purchasing the property is important. If you plan to purchase a property in Bangalore, the recent stamp duty application rules apply to you.
The stamp duty in Karnataka was earlier brought down this year to rejuvenate the state’s real estate market. The pandemic took a major toll, giving the real estate market a major setback. In 2021, the stamp duty for properties in Karnataka was 3% for all properties up to INR 45 lakhs, 2% for properties worth INR 20 lakhs, and 3% for properties between INR 20 lakh to INR 45 lakhs. Utilizing a property loan EMI calculator can assist buyers in estimating their mortgage repayments accurately, facilitating informed decisions when investing in real estate.
Current stamp duty in Karnataka
- Anyone, either male or female or joint buyer looking forward to purchasing property in Karnataka of value higher than INR 45 lakh, you have to pay 5% stamp duty on your property.
- If your property value falls between INR 21 lakh to INR 45 lakh, you must pay 3% as stamp duty charges.
- If your property falls below INR 20 lakh, you must pay 2% as stamp duty charges.
Things to keep in mind when paying stamp duty in Karnataka
Before paying your stamp duty in Karnataka, consider these points:
- Ensure to get all stamp-eligible assets stamped before registration
- The issuing date of the stamp paper in Karnataka should be within six months of the date of the transaction
- Individuals purchasing the property should sign the stamp paper.
- The adhesive stamp is removed during execution and is not used again.
Factors impacting stamp duty in Karnataka
- Age and gender: Senior citizens in Karnataka are charged a lower stamp duty rate. Going by gender, men in India should pay a 2% higher stamp duty than women. However, this doesn’t apply to Karnataka.
- Location of the property: Stamp duty rates are higher in rural locations compared to urban areas.
- Age of the property: The stamp duty is charged on the overall value of the property, considering its age. Old homes are cheaper than newer houses.
- Basic features: Stamp duty is higher on properties with basic facilities such as a pool or lift
However, sometimes the excessive price of the property and additional stamp duty and registration rates make it tough for the home buyer to pay in one go. To ease this, the bank offers housing loans with manageable interest rates so that more people can enjoy the experience of owning a house.
The interest rate for housing loans ranges from 8.5% to 9.60% in Karnataka, depending on factors such as your CIBIL score, income, age, etc.
Steps to apply for Karnataka housing loan
The application procedure for housing loan in Karnataka is simple and convenient.
- Choose the loan solution suitable for you
The website of the bank is simple to use. Ensure to check the different housing loan solutions offered listed by the bank.
Keep the reason for applying for the loan in mind. The vivid loan solutions are designed to keep people from different backgrounds and financial statuses in mind. Check the details of all the loan solutions the bank offers and pick the most appropriate one for you.
- Check your eligibility
Eligibility is a major criterion when it comes to filing for a housing loan. If you lack any of the parameters the bank sets, the possibility of you getting the loan falls. Hence, check your home loan eligibility before filing for the housing loan application is essential.
- Fill out the form and submit the required documentation
Every loan solution the bank offers has a different form that should be filled in and submitted to initiate the verification procedure.
You may be asked to include major documents with the form that proves your age, income, address, and eligibility. It includes your Adhaar card, PAN card, bank statement, income proof, job contract, salary slips, ITR, etc.
Ensure to enter all the details right and then submit the form. Once you have submitted the form and documents, the bank will verify it and contact you after approval.
The procedure for housing loan application is simple and can be done online from the comfort of your home. As soon as your application is approved, you will get a call, or an agent from the bank will contact you. Depending on your application, the verification procedure may take 1 to 5 business days.
