Kotak Mahindra Bank Home Loan Eligibility

Kotak Mahindra Bank Home Loan Eligibility Criteria

Kotak Home Loans can be availed for financing their home purchase or home construction. Borrowers can also use the home loan proceeds for the improvement or extension of their residential property. 

Kotak Mahindra Bank also offers home loan balance transfer facility wherein existing home loan borrowers from other banks or HFCs can transfer their outstanding home loan amount to the Kotak Bank at lower interest rates. 

Check below the Kotak home loan eligibility criteria for an individual, partnership firm/ Indian company/LLP and Hindu Undivided Family (HUF):

Kotak Home Loan Eligibility Criteria for an Individual

Age:

• For salaried applicants: 18 to 60 years
• For self-employed applicants: 18 to 65 years

Minimum Income For salaried applicants

• Minimum income of Rs. 20,000 p.m. for residents of Delhi, Bangalore, Mumbai, Pune, and Chennai.
• Minimum income of Rs. 15,000 p.m. for the residents of other cities

Minimum Income For self-employed applicants

• Minimum income of Rs. 2,40,000 p.a. for residents of Delhi, Bangalore, Mumbai, Pune, and Chennai.
• Minimum income of Rs. 1,80,000 p.a. for the residents of other cities

Minimum Educational Qualifications:

• If the applicant is employed in a partnership firm or private limited company, the minimum education criteria required is a Bachelor’s degree.
• If the applicant works in a public limited company or government or MNC or public sector company, no minimum educational criteria is required.

Also Check: Kotak Mahindra Bank Home Loan Balance Transfer

Kotak Home Loan Eligibility Criteria for a LLP/Partnership Firm/Indian Company

• Existence of firm/organization- Minimum 3 years
• Minimum net income:
  • 2,40,000 p.a. for companies or firms or LLPs in Mumbai, Bangalore, Delhi, Pune, and Chennai.
  • 1,80,000 p.a. for companies or firms or LLPs in other cities

Home Loan Eligibility Criteria for a HUF

• The applicant or co-applicant shall be the Karta of the HUF
• Existence of HUF: Minimum 3 years
• IT returns for atleast of 3 years
• Minimum net income of HUF:
  • 2,40,000 p.a. for the HUFs in Mumbai, Bangalore, Delhi, Pune, and Chennai.
  • 1,80,000 p.a. for the HUFs in other cities.

Home Loan Eligibility Criteria for NRIs

• Maximum age of the applicant at the time of loan maturity should be 58 years
• Minimum education criteria for the applicant is graduate 
• Applicant should be employed for a minimum 3 years
• Minimum income criteria:
  • For loan tenure up to 5 years, the minimum annual gross salary should be:
    • UK/USA/Other countries excluding gulf
    • Dirhams 36,000 for Gulf countries
    • USD 20,000 for Merchant Navy
  • For loan tenure above 5 years to 15 years, minimum annual gross salary should be:
    • USD 42,000 for UK/USA/Other countries excluding gulf
    • Dirhams 48,000 for gulf countries
    • USD 26,000 for Merchant Navy
• Salary should be received on weekly/fortnightly/monthly basis either through direct bank credit or cheque and not by cash

Tips to Improve Eligibility for Kotak Mahindra Bank Home Loan

Improve your Credit Scores

Most banks and NBFCs consider credit scores as one of the most important criteria when setting home loan eligibility criteria. Home loan applicants with credit scores of 750 and above are usually considered creditworthy by lenders and are more likely to get home loan approval. Furthermore, it can also help applicants get lower home loan interest rates as most lenders set their interest rates based on the credit score of the applicants. 

Applicants can build/improve their credit scores by repaying credit card bills on time, avoiding multiple loan/credit card applications within a short span of time, and following other healthy credit practices. 

Additionally, applicants should also periodically review their credit reports to identify any errors and sent it to credit bureaus for correction. Rectified credit reports improve credit scores and increase eligibility for home loan.

Home loan applicants with low credit scores or who are new to credit can avail Step UP Credit Card to build or improve their credit scores. This is a zero annual fee secured credit card issued against the SBM Bank FD, with Paisabazaar as a co-branded partner. 

Adding a Co-Applicant

Adding a co-applicant enhances home loan eligibility, as the co-applicant is also responsible for timely loan repayments. This reduces the credit risk for the lender offering a home loan. Prospective borrowers with low credit scores or insufficient monthly or annual income can add a co-applicant to their application to improve their chances of home loan approval. Many lenders usually allow applicants to add close family members as co-applicants.

Opt for a Longer Home Loan Tenure

Kotak Mahindra Bank Home Loans have loan tenures of up to 25 years. Lenders usually approve applications of those prospective homeowners whose total EMI obligations, (also including proposed home loan EMI) do not exceed 50% to 60% of their total monthly income. Applicants can opt for longer repayment tenures to reduce their EMI burden. This helps to improve their repayment capacity and increase their chances for approval on their home loan application. Applicants should also check the home loan EMI calculator to know their optimum tenures and EMIs based on their repayment capacity.

Adequate Funds for Down Payment

The RBI has capped the LTV ratio for lenders at 90% of property value for home loans up to Rs 30 lakh, at 80% for loans between Rs 30 lakh and Rs 75 lakh, and at 75% for loans above Rs 75 lakh. The bank can only fund up to 90% of the property value, hence applicant has to arrange for the remaining component through a margin contribution or down payment. Applicants can improve their chances of home loan eligibility by making higher down payments as a higher down payment reduces the credit risk for the lender.