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 allows to prepay your personal loan through foreclosure method anytime after the full repayment of first 12 EMIs. However, the foreclosure fee being charged is quite high with 5% of the principal outstanding as compared to other lenders like YES Bank, Bajaj Finserv, and HDFC Bank charging only zero to maximum upto 4% of the principal outstanding. Apart from it, the borrower must provide an intimation prior to 30 days from the foreclosure being applied.
|Kotak Personal Loan|
|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-Closure Charges||5% of the Principal Outstanding Amount
Allowed after first 12 months
|Personal Loan Type||Applicable Interest Rate|
|Kotak Mahindra Bank Personal Loan for Salaried||10.99% - 24% per annum|
|Age||21 Years to 58 Years
|Income||Rs. 20,000 per month|
|Minimum Qualification||Graduation Degree|
|Current Work Experience||Minimum 1 Year|
|Residential Stability||Minimum 1 Year|
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
|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.
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.
Note: The status of your personal loan application will appear on your screen.
|Type of Charges||Applicable Amount|
|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.
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.
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.
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.
Follow the steps given below to update your new address in your personal loan account –
Note: The new address will be updated in the bank's records within 2 working days, post submission of the above mentioned documents.
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).