Kotak Bank Home Loan - Key Features of Kotak Mahindra Bank Home Loan

Kotak Mahindra Bank is one of the prevalent banking institutions in the finance industry. The bank helps its customers in buying their dream home by offering them several home loan options. The interest rate of Kotak Mahindra Bank Home Loan starts from 8.90% with zero processing fee if applied online.

Key Features of Kotak Mahindra Bank Home Loan

• Lower EMI'S: Due to the lower rate of interest, the loans are offered with lower EMIs.
• Loan Amount: The applicant can apply for a home loan amounting up to 90% of the property value. However, he/she can borrow only up to 80% of the value of the property if the loan lies between Rs.20 lakhs-75 lakhs and up to 75% for loans above Rs.75 Lakhs. For buying commercial property, or loans against existing properties, the applicant can only avail up to 60% of the property value.
• Tenure: Maximum loan period in Kotak Home Loan is 20 years. However, the mandate may vary depending on the business profile of the applicant.
• Simple Documentation: Kotak home loans are disbursed instantly with the simple documentation process.
• Kotak Bank provides fast approval on loans.
• Doorstep Facility: The bank appoints a dedicated executive for collecting documents from home and completing other formalities.
• The loan can be applied either jointly or solely by the individuals in Kotak Mahindra Bank.
• The bank also gives the provision of extending one's eligibility by adding a co-applicant whose income is the primary factor. The co-applicants can be parents, spouse, or even children above the age of 18 years of the principal applicant.
• The bank generally keeps the property as collateral until the maturity of the loan period. However, in some instances, the applicant can also provide some additional securities.
• The bank also offers a free personal accident insurance cover up to Rs. 1 crore along with the home loan.
• Pre-approval facility: Under this facility, an applicant can apply for a loan based on his current income, assets, and employment information even before purchasing a new property. This facility is provided to the customers to enable them to close a deal as they come across a suitable property. However, these sanctions are only valid for six months.
  

Types of Kotak Home Loan

Kotak Flexi Home Loan

The Flexi home loan is a product offered by Kotak bank. This product is specially tailored to protect home loan borrowers from the inconsistency of the interest rate scenario. The loans issued at fixed interest rate are generally expensive owing to various charges, while loans issued at a floating rate of interest remains highly volatile due to the sudden changes in the market rate. Kotak Flexi Home Loan abates the customer from volatility, i.e., the customer is not required to pay more with a sudden increase in the market interest rate.

Under the Kotak home loan scheme, the interest remains fixed for the first three years, and it is re-fixed again for the next three years based upon the current index rate. This process is continued until the home loan tenure ends.  This loan provides a certainty of a fixed rate method to the customer, along with the benefit of a floating interest rate, thus preventing the customer from paying higher interests in case of a sudden increase in the prevailing interest rates.

Fixed Deposit Linked Home Loans

Kotak FD linked home loan is a fantastic product offered by the bank, where the interest rate on loan is charged according to the one-year Retail Deposit Rate (RDR) of Kotak Bank in place of the Retail Prime Lending Rate (RPLR). It means that the interest rate on loan will change only if the one-year retail deposit rate varies. It is not mandatory for the customer to have a fixed deposit account with the bank to avail of this facility. It is available in both Kotak Flexi Home Loan as well as Floating Rate Home Loans.

Kotak Home improvement loans

KMB Home Loan is provided for renovation which may include decoration, tiling, furnishing, making changes to the appearance, construction, waterproofing and all other activities undertaken towards the improvement of the existing house owned by the borrower.

Kotak Mahindra Bank Home loan Balance Transfer

This loan enables an individual to transfer the existing home loan from other financial institution to Kotak Mahindra Bank at a lower interest rate.

Kotak Home loan for Non-Resident Indian (NRI) Borrowers

Kotak bank also offers home loans to NRIs wishing to purchase a house in India or wishing to make extensions or renovations of the existing property owned by them. However, a specific eligibility criterion has been laid down by the bank for the individuals applying for this type of loan.

Kotak Mahindra Home Loan Process

The bank releases the loan amount once all the documentation and legal formalities of the property is complete and it gets proof of the down payment made by the borrower towards the purchase of the property.

The bank sanctions the loan amount depending upon the funds' requirement of the applicant and the progress of construction. The bank can either pay the entire amount at one time or in the form of suitable installments. The disbursement method depends on the discretion of the bank.

How to Apply for Kotak Mahindra Home Loan Online and Offline

When it comes to applying for Kotak Mahindra Bank Home Loan, the customer gets two options. Either the customer can go to the website or visit the nearest branch of Kotak Bank. In either of the options, the applicant needs to fill in personal, residential, income, and property details.
After filling the form, the applicant should submit it to the bank to process the application of a home loan. The bank will approve a loan only after the authentication of details during the investigation process, which involves an executive visit to the office and residence of the applicant.
If the investigation remains positive, the bank will then send the executive to visit the property that the applicant is looking to buy. After evaluating the condition of the property and its current market value, the executive will prepare a legal & technical report, which would become a factor in determining the valuation of the property.

Depending on the repayment ability of the applicant, the bank will finance up to 90% of the property valuation.