Benefits of Kotak Mahindra Bank Personal Loans - Kotak Mahindra Bank Personal Loans

Kotak Mahindra Bank Personal Loans

Kotak Mahindra Bank provides personal loans to its customers for different financial needs at very affordable rates of interest, and a lot of other benefits such as quick documentation process, reasonable repayment options, and instant loan approvals. mymoneykarma gives you all the information you need on Kotak Mahindra Bank personal loans.

Benefits of Kotak Mahindra Bank Personal Loans

Kotak Mahindra Bank personal loans are loaded with customer-centric benefits and features. Here are a few highlights of Kotak Mahindra Bank personal loans.

• Significant loan amounts ranging from a minimum of Rs 50,000 to a maximum of Rs 15 lakhs. The loan amount depends on the applicant's credit score, repayment capability, credit history, and yearly income.
• Long loan tenures ranging from a minimum of 12 months and a maximum period of five years.
• Attractive interest rates ranging between 11% to 24% per annum.
• Loans available for salaried individuals, public and private company employees, and government employees.
• Special offers on the applicant being an existing customer of Kotak Mahindra Bank.
• Various feasible repayment channels such as NEFT, post-dated cheques, and online banking.
• Facility of personal loan transfer from other banks to Kotak Mahindra Bank.
• Simplified loan application and approval process with minimal documentation.
• Dedicated 24/7 customer service desk for query resolution.
  

Types of Kotak Mahindra Bank Personal Loans

Kotak Mahindra Bank offers only one type of personal loan. This loan is suitable for a large pool of customers.
Eligibility Criteria for Kotak Mahindra Bank Personal Loans   

Applicants must meet the following criteria to get a personal loan from Kotak Mahindra Bank.

• Minimum income of Rs 20,000 per month.
• Minimum income of Rs 20,000-25,000 per month in metro cities.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 21-55 years for salaried individuals.
• Minimum work experience of one year
  

Documents Required for Kotak Mahindra Bank Personal Loans

Applicants need to submit the following documents while applying for Kotak Mahindra Bank personal loan.

• A filled loan application form with necessary details such as income, occupational details, and personal information.
• Copies of the applicant's PAN card and Aadhaar card.
• Copies of income proof such as salary slips of the previous three months, bank statements of the last three months, and a copy of Form 16.
• Copies of residence proof such as telephone bills, electricity bills, or rental agreement attested by the applicant.
• Two copies of recent passport sized photographs.

How to Apply for Kotak Mahindra Bank Personal Loans Online

Customers can apply for Kotak Mahindra Bank personal loan by following these steps:

• Go to Kotak Mahindra Bank website.
• Under the Tab indicating loan products, click on ‘personal loans’ and download the loan application form.
• Fill in the details and upload the scanned copies of the required documentation.
• Check on electronic signature box and submit.
  

How to Apply for Kotak Mahindra Bank Personal Loans Offline

Applicants can also directly walk into the personal loan centers of Kotak Mahindra Bank along with the necessary documents. They can fill up the application form at the bank and submit it along with the required documentation. The loan is approved within two working days.

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.

Kotak Bank Loan Against Property - Kotak Bank Loan Against Property Schemes

Loan against property (LAP) is a multipurpose loan that helps an individual in raising funds against his assets. An individual buys assets to secure his/her money through investment. However, there can be times when, despite having properties at different places, an individual faces a cash crunch and has to find a source for liquid funding. During such times, your existing property can help you avail loans from Kotak Mahindra Bank at a lower interest rate, in comparison to other loans.

Features

• The applicant can avail this loan against any kind of property, be it commercial, residential, or industrial.
• Loan Tenure: The loan is issued for a maximum tenure of 10 years. However, the period of repayment varies depending upon the purpose of the loan and the applicant’s business profile.
• The applicant can avail a loan amounting from Rs.10 lakh - Rs.3 crores.
• In the case of commercial property, an applicant can avail a loan of up to 55% of the cost of the property.
• The bank decides the loan amount according to the repayment capacity of the borrower. The repayment capacity is determined based on the borrower’s income, age, educational qualifications, number of dependents, income of spouse, assets, liabilities, savings history, occupation, business profile, the operational time of the existing business and the net take-home salary.
• Kotak Mortgage Loan can be applied for by customers either jointly or individually.
• The bank also offers the facility of extending the scope of eligibility to the borrower by adding a co-applicant while applying for a loan. In such cases, the income of the co-applicant is also considered before approving the loan amount.
• For a loan against property from Kotak Mahindra Bank, the co-applicant can be parents, the spouse, or even children (above 18 years old) of the borrower.
• The bank generally keeps the property under a mortgage, as security till the maturity of the loan period. However, in some cases, the applicant can also provide additional securities such as LIC policies or term deposit receipts issued by Kotak Mahindra Bank.
• Kotak Bank also allows prepayment of the loan. However, early redemption fees as applicable will be levied by the bank.
• Kotak Bank customers can use the EMI calculator to calculate the EMIs on the loan amount, for which they will need three principal elements: loan tenure, loan amount, and rate of interest.

Kotak Bank Loan Against Property Schemes

Kotak Mahindra Commercial Property Purchase Loan

Commercial property buyers can avail this loan from Kotak Mahindra Bank at very attractive interest rates. Here are some of its prominent features:

• Eligible Borrowers: Salaried, self-employed, and businesses.
• Type of Property: The bank offers commercial property purchase loans only for properties whose stage of construction is more than 80 percent.
• Low Interest Rate: 9.25-11%
• Tenure: Maximum ten years
• Loan amount: Rs.15 lakhs-20 crores
• Processing Fees: 1-3% of the loan amount, plus GST
• Eligible loan amount: Up to 60% of the cost of the property or 90% of the current market valuation of the property, whichever is lower.
  

Kotak Mahindra Bank Overdraft Facility

Salaried and self-employed applicants opting for a loan against property from Kotak Mahindra Bank get an option to borrow either a term loan or a dropline overdraft(OD) facility. In the case of an OD limit, the borrower pays interest only on the loan amount that is used. Given below are some of the vital features of

Kotak Mahindra Bank LAP OD:

• The overdraft facility is available mainly for self-employed borrowers.
• Interest is payable only on the used sum of the loan amount and not on the entire sanctioned limit.
• The limit can be reset based on the eligibility of loan applicants after completing a tenure of one year.
  

Kotak Mahindra Bank Lease Rental Discounting (LRD)

Kotak Mahindra Bank provides lease rental discounting(LRD) loans to both salaried and self-employed borrowers who get monthly rental income from reputed lessees. The loan amount Kotak Mahindra Bank offers in the LRD scheme can go up to eighty times of net monthly rentals, subject to the expiry clauses of a lease agreement. Kotak Mahindra Bank offers a lease discount loan against commercial and industrial properties leased for over one year with renewable clauses in the rental agreement.

• Eligible borrowers: Salaried and self-employed individuals, firms, and companies.
• Type of property: Commercial shops, offices, and industrial premises such as warehouses, factories, workshops, etc.
• Tenure: Up to 10 years, depending on the lease term of the rented property.
• Loan amount: 15 lakhs-20 crores
• Processing fees: 0.50-1% of the loan amount.
• EMI: The bank restricts the EMI to 90% of the net monthly rentals.
  

Kotak Mahindra Bank Loan Against Property Balance Transfer

Customers can also transfer the loan from another bank to Kotak Mahindra Bank for a lower interest rate, which can significantly reduce the loan burden and monthly outgo on EMIs.

Eligibility Criteria

To apply for a Kotak loan against property, you must either be a self-employed individual or a salaried employee working in a renowned private or government organization.

For Salaried Employees

• The minimum permissible age is 23 years, and the maximum is 60 years.
• The minimum monthly income should be Rs.30,000/- and work experience should be three years.
  

Minimum credit score required: 700

For Self-Employed Professionals

• The minimum annual income should be Rs. 1.44 Lakhs as per the P&L account.
• The minimum permissible age is 21 years.
• The maximum age is 65 years during loan maturity.
• The firm/company should have been in operation for the last three years.
• The firm/company should have been making profits for at least the last two years.