Kotak Mahindra Bank Personal Loans

Kotak Mahindra Bank Personal Loan

4
Processing Fee
2.5

Tenure
1 - 5 Years

Kotak Mahindra Bank Personal Loan

Kotak Mahindra Bank offers personal loan to Salaried employees only, where a borrower can avail from minimum Rs. 50,000 to maximum Rs. 15 Lacs with an annual interest rate ranging from 10.99% to 24% per annum. The tenure being offered by Kotak is standard period offered by most of the banks, upto 60 months.


Kotak Mahindra Bank Personal Loan at a glance

Annual Interest Rate

10.99% - 24%

Loan Term

12 Months - 60 Months

Loan Amount

Rs. 50,000 - Rs. 15 Lacs

Time of Funding

Within 30 Minutes of Approval

Pre-Payment Charges

5% of the Principal Outstanding Amount

Allowed after first 12 months

Why Choose Kotak Mahindra Bank?

Quick Approval on Online Applications – Kotak Bank is one of the few banks offering online application facility for personal loan and quick approvals. With Kotak Bank, you can get approved instantly if you meet the eligibility criteria and have good credit score and get the funds within minutes.

Doorstep Documents Collection – Kotak Mahindra Bank is one of the very few bank which offers doorstep facility for collecting necessary documents for personal loan. You can just simply make a request to meet their representative at your home and they will not only help you complete the application process but also help you sort out the documentation procedure.

No Documentation Charges – Kotak Mahindra Bank doesn't charge any documentation fee to the personal loan borrowers. Whereas many of it's competing bank charges a fee from Rs. 100 to Rs. 500 or even higher for documentation procedure.

Flexibility to switch Installment Date – Kotak Mahindra allows you to switch your repayment date if you think the current date is not suitable as per your salary day. You can just simply switch from 5th to 10th of every month or 10th to 5th of every month by paying a rescheduling fee and PDCs Swap charges of Rs. 500 per swap. However, you need to intimate Kotak Bank 7 days prior or post the installment date by writing a request letter.

What to watch out for?

Offers Personal Loan within Few Indian Cities – Being a one of the popular private sector bank operating in India, a bank should be offering personal loans in most of the Indian cities. However, in case of Kotak Mahindra Bank, they are only operating only in the following Indian Cities – Mumbai, Bangalore (Bengaluru), New Delhi (Delhi), Chennai, Kolkata, Hyderabad, Pune, Ahmedabad, Noida, Gurgaon, Faridabad, Ghaziabad, Jaipur, Chandigarh and Kochi. So in order to be eligible to avail Kotak Personal Loan, you must be a resident of any of these Indian cities.

Minimum Education equal to Graduation required – Kotak Mahindra Bank is only very few banks who also counts education level in eligibility criteria for the borrower. With Kotak, you must have education equivalent to Graduation Degree to be eligible for personal loan.

Minimum Income of Rs. 20,000 required – The minimum criteria for income to avail Kotak Mahindra Personal Loan is Rs. 20,000, that means a borrower must be earning a net monthly income of Rs. 20,000 or above to be eligible for Kotak Personal Loan.

High Prepayment Charges & 12 Months Lock-in Period – The prepayment charges levied by Kotak Mahindra Bank are pretty high than many other banks offering personal loans. Kotak charges prepayment charges equal to 5% of the principal outstanding amount. It means if you have availed a personal loan equal to Rs. 1 Lac then you have to pay the prepayment charges equal to Rs. 5,000 at the time of foreclosure of the loan. Apart from high foreclosure charges, a borrower is only allowed to prepay his/her personal loan after full repayment of first 12 EMIs or 12 months from the date of loan disbursal.

Part-Payment Not Allowed – Kotak Mahindra doesn't allow their customers to prepay personal loan using part-payment facility. Part-payment can be an important feature for people who wants to prepay their personal loan quickly but are unable to preclose it in one go. With Kotak Mahindra, you have a single option to prepay your personal loan and that is with only foreclosure prepayment method.

High Payment Default Charges – The penal interest or default charges being levied on Kotak Personal Loan are higher against what other banks are usually charging for default repayment. Currently, Kotak levies a penal interest equal to 3% of the overdue amount as compared to 2% per month on the overdue amount charged by other banks like HDFC Bank, Axis Bank and YES Bank.

Compare Kotak Mahindra Bank Personal Loans to Other Banks

Bank Name Kotak Mahindra Bank YES Bank Axis Bank

Typical APR

10.99% - 24%

10.75% - 15.90%

15.5% - 24%

Loan Term

12 Months - 60 Months

12 Months - 60 Months

12 Months - 60 Months

Maximum Lending Amount

Rs. 15 Lacs

Rs. 25 Lacs

Rs. 15 Lacs

Processing Fee

Upto 2.5% of the loan amount

Upto 2.5% of the loan amount

Minimum Rs. 999

1.50% to 2.00% of the loan amount

Time to Funding

Within 30 minutes of approval

Within 24 hours of approval

Within 48 hours of approval

Pre-Closure

5% of the Principal Outstanding Amount

Zero to upto 4% of the outstanding amount

Nil

The repayment period offered by Kotak Mahindra Bank is standard, ranging from 12 months to 60 months. The maximum lending amount offered by Kotak is Rs. 15 Lacs which is quite low as compared to YES Bank who is offering upto Rs. 25 Lacs.

The processing fee charged by Kotak, is average, upto 2.50% of the loan amount as charged by most of the banks. However, the disbursal time is quite lower than most of the bank. Kotak takes only 30 minutes to disburse the amount into your account as compared to Axis Bank and YES Bank which takes 24 hours to 48 hours for disbursal.

However, the prepayment fee is quite high in Kotak Personal Loan. Kotak currently charges a pre-closure fee equal to 5% of the outstanding amount as compared to YES Bank charging maximum 4% of the outstanding amount and Axis Bank charging no prepayment charges at all.

Am I Eligible?

  • Age of a salaried applicant should be minimum 21 years at the time of loan application to 58 years at the time of loan maturity.
  • Applicant can be an employee of either MNCs, Public and Private limited companies.
  • Minimum net monthly salary of the applicant should not be less than Rs. 20,000.
  • Applicant should have a minimum educational qualification equal to Graduation Degree.
  • Applicant should be living in the current city for at least 1 Year minimum. Applicants living in the following cities are eligible, Mumbai, Bangalore, New Delhi (Delhi), Chennai, Kolkata, Hyderabad, Pune, Ahmedabad, Noida, Gurgaon, Faridabad, Ghaziabad, Jaipur, Chandigarh and Kochi.
  • Applicant should have a work experience of minimum 1 Year.

Loan Offerings

Kotak Mahindra Bank Personal Loan

  • Being a salaried applicant, you can take personal loan from minimum Rs. 50,000 to maximum Rs. 15 Lacs from Kotak Mahindra Bank depending upon the eligibility criteria of the applicant. The interest rate offered on Kotak Personal Loan ranges from minimum 10.99% to 24% per annum with processing charges equal to upto 2.50% of the loan amount.
  • The repayment period offered on Kotak Personal Loan ranges from minimum 12 months to maximum 60 months, which is a standard repayment period offered by most of the banks and financial institutions.
  • Documentation for Kotak Mahindra Bank Personal Loan:
    • Employee ID
    • Latest payslip of last 3 months / Form 16 / Copy of Latest ITR Signature Proof
    • Ownership proof for the current residence.
    • KYC Documents with 1 Passport Sized Photographs

Kotak Mahindra Bank Personal Loan Rate of Interest

Personal Loan Type Applicable Interest Rate

Kotak Mahindra Bank Personal Loan for Salaried

10.99% - 24% per annum

How do I apply for Kotak Mahindra Bank Personal Loan?

At Paisa

    • Click on the "Apply Now" button given above.
    • Provide all the required information and submit it.
    • Now, wait for the confirmation from the bank for your loan approval.

At Kotak Mahindra Bank Branches

    • Download the Kotak Personal Loan Application Form from here.
    • Walk-in to the nearest Kotak Mahindra Bank branch and go to the helpdesk.
    • Share your details with the Kotak Bank representative and he/she will check your loan eligibility for the loan.
    • If you're eligible for the loan, then submit the completed form along with all the required information.

After I Apply?

Check loan status

    • Click here to go to the application tracking page of Kotak Mahindra Bank.
    • On the page, select "Salaried Loan" from the drop-down menu.
    • Now enter you Personal Loan Application number that you might have received on your registered email address as well as registered mobile number.
    • Click on "Submit" button.

    Note: The status of your personal loan application will appear on your screen.

Once I'm Approved?

Opt for ECS Payment Mode

    • Download the ECS Mandate form here.
    • Complete the form and do the signature.
    • Now, write an undated cheque in name of "Kotak Mahindra Bank" and mention "Not more than the loan amount" at the bottom of the cheque. Total 6 undated cheques should be written in the name of Kotak Mahindra Bank.
    • Once done, submit the cheque and filled ECS mandate form at the nearest Kotak Mahindra Branch along with Swap charges equal to Rs. 500.

Update New Address

    • Check Offline
      • Write a letter to the customer care department of Kotak Mahindra Bank mentioning the change in your current registered address.
      • With the letter, attach a copy of your latest address for address proof such as updated ration card copy, electricity bill showing the new address, copy of passport with updated address or updated voter ID card etc. Submit the letter with the updated address proof at the nearest Kotak Mahindra Branch.

    Note: Your registered address in your personal loan account with the Kotak Mahindra Bank will be updated within 2 working days.

Receiving NOC/NDC

    • If your personal loan have reached to the maturity
      • Write a Letter
        • Write a Letter to Kotak Mahindra Bank customer care department to make a request to release the NOC against your completed Personal Loan.
      • Contact Support via Email
        • Write a Letter to Kotak Mahindra Bank customer care department to make a request to release the NOC against your completed Personal Loan.

Fees & Penalties

Type of Charge Applicable Charges

Processing Charges

Upto 2.5% of the loan amount

Foreclosure Charges

5% of the principal outstanding

Part-Payment Charges

Not Allowed

Penal Charges

3% per month on the overdue EMI

EMI Bounce Charges

Rs. 750 per instance

Instrument Swapping Charges

Rs. 500 per instance

Charges for No Due Certificate

Rs. 500 each copy

The processing charges levied by Kotak Mahindra are average at maximum upto 2.50% of the loan amount, same as what most of the banks and financial institution charges. But in case of foreclosure, Kotak Mahindra will be a burden on your pocket since they charges a foreclosure fee equal to 5% of the outstanding amount.

Apart from it, Kotak also doesn’t allow part-payment as compared to YES Bank and HDFC Bank which offers part-payment facility to their borrower for easier repayment of the loan. The penal interest charged by Kotak is 3% per month on the overdue amount, which is the highest in the industry. Almost all the banks and financial institution charges only 2% per month on the overdue amount as compared to Kotak Mahindra Bank.

EMI Bounce charge is also high in case of Kotak Personal Loan. Most of the banks like HDFC Bank, Axis Bank and ICICI Bank charges only as high as Rs. 500 for EMI Bounce.

FAQs

When can I pre-close my Kotak Mahindra Bank Personal Loan? What is the procedure for full prepayment?

You can pre-close your loan anytime after 12 months from the date of your first EMI. Additionally, 30 days foreclosure intimation period is mandatory. You need to inform Kotak Mahindra Bank regarding your request for full the pre-closure in writing or via email.

You can make the preclosure payment either via Demand Draft / Cheque / Cash in favor of "Kotak Mahindra Bank" after the intimation period is over.

Is it possible to change my Installment date? Are there any charges applicable?

Yes, it is possible to change the Installment date. The dates available are 5th and 10th and changing of EMI date will attract rescheduling charges and PDC Swap charges per instance.

You need to provide a written request mentioning the reason for the EMI date change and send the rescheduling charges to the bank before or after the 7 working days of the current EMI date.

What do I need to do, in case I want to opt for an ECS mode for making my Installment payments instead of PDC?

You would need to sign an ECS Mandate form to avail the service. One security cheque to be drawn in the favor of "Kotak Mahindra Bank". This cheque needs to be undated and blank, at the bottom it needs to mention "Not more than the loan amount".

PDC swap charges will be applicable as Rs. 500 per instance.

How can I get my new address updated on my loan?

Follow the steps given below to update your new address in your personal loan account –

  • Send a written request letter to the customer care department of Kotak Mahindra Bank informing the change in correspondence address.
  • Enclose the photocopy proof of your new address. For example: An electricity bill / passport copy / ration card etc.

Note: The new address will be updated in the bank's records within 2 working days, post submission of the above mentioned documents

How can I receive No Objection Certificate (NOC) for my Kotak Mahindra Bank Personal Loan?

In case if your Loan has matured, you need to send us a request for NOC via letter / email. NOC will be issued to you 15 working days post termination of the loan in our system (provided there is no penal outstanding).

In case, if your loan is foreclosed, NOC will be issued to you 15 working days post termination of the loan in our system (provided there is no penal outstanding).

reviews
Bad
Sara Gurpal
Sat Aug 19 2017 15:49:12 GMT+0000 (UTC) a year ago

Kotak Mahindra Bank don’t offer quality services to its customers. I wanted to apply online, but their website never responds whenever I try to apply. I have also tried approaching their customer support team, but they always say that there is some technical error.

Great
Shanaya Hari
Sat Aug 19 2017 15:50:46 GMT+0000 (UTC) a year ago

Last week I applied for the personal loan from Kotak Mahindra Bank. I immediately received a call from their customer support team, the executive guided me the whole process and even promised the visit of an executive at my place. The loan was disbursed within 10 days.