Verdict

The Kotak Mahindra Bank personal loan is available only for salaried individuals working in stable jobs and is not for the self-employed, like many other personal loans. If one satisfies all of the other eligibility criteria, the whole process could take as less as 48 hours for most applicants.

Kotak Mahindra Personal Loan

Kotak Mahindra Personal Loan
4.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Loan Amount

INR 50,000 to INR 25 lakh

Rate of Interest (APR)

It starts with 10.25%

(interest rate will depend on a lot of factors like your credit ratings among others)

Repayment Tenor

Between 12 months and 60 months

Kotak Mahindra Personal Loan

Loan Amount

INR 50,000 to INR 25 lakh

Rate of Interest (APR)

It starts with 10.25%

(interest rate will depend on a lot of factors like your credit ratings among others)

Repayment Tenor

Between 12 months and 60 months

Pros & Cons
  • Top and balance and transfer available
  • Interest rate of balance transfer has been low
  • For partial prepayment there is a lock-in period of six months
  • Loan only available for salaried applicants
  • One has to be a graduate to apply for this loan

Kotak Mahindra Personal Loan Amount and Term

Prepayment or Foreclosure

Foreclosure charges:
There is a lock-in period of 12 months and one can not close the loan before that. Post the period, the applicant will have to visit the branch of the bank physically. The charges have been revised post February, 2020.

  • Foreclosure charges for loans disbursed on or before February 2020 are 5% + GST on principal outstanding after lock-in period.
  • Foreclosure charges are for the loans disbursed after Aug 1, 2021 are as follows:
    • After 1st year: 4% + GST on principal outstanding
    • After 2nd year: 4% + GST on principal outstanding
    • After 3rd year: 2% + GST on principal outstanding

Part pre-payment charges:

  • For the loans disbursed on or before February 1, 2020, this facility is not available, for the loans given after this the following is charged:
    • There is a lock-in period again of 12 months
    • After this one can pay upto 20% ofthe loan each year
    • The charges will be INR 500 + GST per instance of part-prepayment

Approval Process: After submitting the required document the bank approves and disburses the loan amount within 48 hours.


Kotak Mahindra Personal Loan Costs

  • Loan Processing Fee: Up to 2.5% of the loan amount + GST and other stamping charges (stamp duties vary from state to state)
  • Credit Administration Charges: Up to 5% of the loan amount, not exceeding INR 7,500 including GST.
  • Credit Appraisal Charges: Upto 5% of the loan amount, not exceeding INR 7,500 including GST.
  • Overdue Interest: 3% per month compounded monthly on the due amount.
  • Collection Charges: 30% of the cheque/instrument dishonour charges + overdue interest (this 30% includes all the taxes).
  • Dishonour Charges Per Instance: INR 750 per instance, taxes have already been included in this amount.
  • Swap Charges (Change in mode of repayment/Instrument/EMI Date swap): INR 500 per swap per instance + GST + other charges.
  • Duplicate Issue of NOC: Will be free.
  • No Due Certificate: Will be free.
  • Copy of the credit information report (CIBIL) to the applicant: INR 50 + GST + other charges.
  • Copies of records of all the transactions ( SOA/Amortization Schedule) will be free of charge once a year, post that INR 200 + GST + other charges for every request.

Kotak Mahindra Personal Loan Features and Benefits

Eligibility

  • Nationality: Applicant should be an Indian citizen.
  • Employment: This loan is not for self employed, people working for MNCs, public and private limited companies can apply for this.
  • Age: Between 21 years and 58 years.
  • Education: The applicant must be a graduate.
  • Guarantor Required: The bank requires a guarantor for this personal loan if in case there is any lag in payment the guarantor insures the payment.
  • Work Experience: 1 year.

Repayment:

EMIs can be repaid in the following manner:

  • With the help of Kotak Bank’s savings/salary account, post dated cheques.
  • NACH mandate from any other bank’s savings/salary account.

Things Required to Qualify for Insurance:

  • Identity Proof: Any one of these may work, namely passport, driving license, voter ID, PAN card.
  • Residence Proof: Any one of these documents, leave and license agreement, utility bill (dispatched within three months).
  • Last three bank statements.
  • Salary slip for the last three months.
  • Two passport size photographs.

How To Apply For Kotak Mahindra Personal Loan

One can apply online for it or by visiting a branch of Kotak.

Kotak Mahindra Loan Balance Transfer

One can transfer an existing personal loan from a different bank to Kotak at a lowered rate of interest. This requires a little documentation and following are the things required.

  • Eligibility criteria
    • Education: Must be a graduate.
    • Work: Must have a working experience of at least one year.
    • Residence: Should have been a resident of the same city for at least one year.
    • Income: It should be at least INR 20,000 per month.
  • Essential documents 
    • Proof of identity
    • Proof of residence
    • 3 month’s bank statement
    • 3 month’s salary slips
    • 3 passport-sized photographs
  • Processing Fee: Nil
  • Interest Rate: Differs from case to case ( recently they have offered this at an interest rate of around 7%).
  • Top up: This facility is available after 9 months of getting a loan sanctioned and one gets an extra amount as loan over and above the existing loan at the same or different rate of interest depending on the credentials of the applicant.

Methodology

We considered top factors that help consumers decide whether they want to opt for a specific loan offering. We ranked the Kotak Mahindra Bank personal loan on the basis of these factors that include:

Ease of Access: 20%

Rate of Interest: 15%

Other Cost and Charges: 20%

Borrowing Limit: 15%

Extra Benefits: 20%

Loan Transfer Facility: 10%