Kotak Mahindra bank is one of leading banking institutions providing financial services to its customers. Kotak Mahindra Bank helps an individual to buy his/her dream house with their various home loan options. Kotak Bank’s home loan interest rate starts from 8.90% with zero processing fee is zero on online application.
Kotak Mahindra Bank Home Loan Interest Rate 2019
|Interest Rate||8.90% onwards|
|Processing Charges||Nil for online application (Upto 1.25% of loan amt. for offline)|
|Loan Tenure||Upto 20 years|
|Loan Amount||Depends on applicant’s profile|
|Cheque Bounce Charges||Rs. 750 per instance|
|Cheque / Instrument Swap Charges||Rs. 500 per instance|
|Prepayment or Foreclosure Charges||Nil if floating, upto 4% for fixed rate|
|Documentation Charges||0.5% of the Loan amount|
Kotak Mahindra Bank Home loan Eligibility
To be eligible for a home loan at Kotak Bank Applicant’s must fulfill the following eligibility criteria:
|Age||21-65 Years||21-65 Years|
|Income||Must have been earning reasonably higher||Must have been earning reasonably higher|
|Job/Professional Status||Must have worked for atleast 2-3 years||Must be in the same line of business for a minimum of 2-3 years|
- A salaried or self-employed professional with regular income can apply for a Kotak Home Loan. To be eligible for Kotak Home Loan an applicant must be minimum 21 years of age and maximum 65 years of age. However, a non-salaried professional who earns more than the minimum income required is also eligible for the Kotak Mahindra Limited Home Loan.
- The Kotak Mahindra bank decides the amount that an individual can borrow, based on the repayment capacity of the borrower. The repayment capacity is calculated based on the borrower’s income, age , educational qualifications, no. of dependents, spouse’s income, assets, liabilities, savings history, occupation, business profile, the running time of the existing business and the net take home amount.
Kotak Mahindra Home Loan Eligibility For NRI Individuals
- An applicant residing in U.S/UK and other foreign countries, except Gulf wishing to apply for a loan repayment period of up to 5 years should have a minimum gross income of USD 30000. However, for tenure of 5-15 years, the applicant should have a minimum gross income of USD 42000.
- An individual applying for a Kotak NRI Home loan with the bank has to abide by the provisions of Foreign Exchange Management (Borrowing and lending in Rupees) Regulation, 2000
- Finalization of the eligible loan amount will depend solely up on the principal borrower’s earning capacity.
- NRE/NRO/FCNR/NRNR/NRSR accounts, or also through rentals received out of the applicant’s property.
- Minimum educational qualification in the form a graduate degree is required.
- If the loan is sought individually, a personal guarantee by a third party is required.
Kotak Mahindra Bank Home Loans Interest Rates
|Loan Amount||Primary Applicant||Interest Rates|
|Salaried/Self employed Professional||Self employed Non-Professional|
|Upto 30 lakhs||Women||8.90%||8.90%|
|30.01 lakhs-75 lakhs||Women||8.95%||8.95%|
|75.01 lakhs and above||Women||9.05 to 9.55%||9.05 to 9.55%|
|Others||9.15 to 9.55%||9.3 to 9.55%|
Fixed rate of interest is not charged on the Kotak Home loans and a floating rate of interest is only applicable on a home loan available at Kotak Mahindra Bank. The home loan rate of interest charged, on a floating basis; depend on the tenure of the loan and the amount of loan sought.
Read Also: Floating vs Fixed Interest Rates
Documents Required for Kotak Mahindra Home Loan
- The application form with self-attested photos duly signed
- Last 3 months’ bank statement or latest ITR or Form 16.
- Latest Salary Slip or current dated Salary Certificate with latest Form 16 for salaried people
- 2 passport size photographs in case of both salaried and non-salaried applicants.
- A cheque for the loan processing fee
- Proof of educational qualifications: The applicant needs to submit the documents pertaining to his highest educational degree
- Identity Proof: Copy of Passport / Voter ID card / Driving License. Any one of the document can be submitted as a valid Identity Proof because all the listed documents have the individual’s photograph along with his or her name against the photograph proving the identity of the applicant. Required in case of both self-employed professional as well as self-employed non-professionals.
- Address Proof – Copy of Ration Card / Electricity or Telephone Bill / Rental Agreement / Passport. The applicant needs to submit any one of the afore-mentioned documents which state the correct address of the applicant needed for the verification process of the bank. However, the documents should not be more than 3 months old.
- Age Proof: Class 10thcertificate or birth certificate is required. These documents state the exact age of the applicant, helping the bank confirm to its age limit factor. Required in case of all the applicants.
- Bank statement: These documents for home loans seek to verify the applicant’s income status prior to making the home loan application which also depicts the individual’s financial picture depicting the credit worthiness of the person.
- Signature proof: PAN card/Driver’s license/Passport copy/Banker’s attestation Bank account statements. Any one of the document can be submitted. However, the applicant’s signature in the provided document should be clear and understandable. The applicant needs to maintain the same signature throughout the loan period.
Documentation for Kotak NRI Home Loan
- 6 months domestic bank statement
- 6 months’ salary or active international account
- Valid passport or visa copies
- Last six months’ salary slips copies
- Salary certificate
- Employment letter or appointment letter or contract copy
- Power Of attorney in favor of a local applicant
Kotak Mahindra Bank Home loan EMI Calculator
Calculating the incidental Equated Monthly Instalment on the amount of home loan sought has been made easier with an online facility of calculating the relevant EMIs through our web portal. By visiting Paisabazaar.com and providing the details with respect of the loan type (home Loan), the amount of the said loan and the repayment tenure, once can easily calculate the incidental Equated Monthly Instalment which would be payable for the loan.
|Loan Amount||10 year loan||15 year loan||20 year loan|
|Rs. 20 Lakh||Rs. 25,012||Rs. 19,930||Rs. 17,610|
|Rs. 30 Lakh||Rs. 37,517||Rs. 29,895||Rs. 26,416|
|Rs. 50 Lakh||Rs. 62,529||Rs. 49,825||Rs. 44,026|
Borrowers can get monthly EMI of as low as Rs. 881 per lakh on Kotak Bank home loan. Apply Now
Types Kotak Mahindra Bank Home Loan Variants:
Kotak Flexi Home Loan
flexi home loan is a unique product offered by Kotak bank. This product is specifically designed to protect home loan borrowers from the volatility of the interest rate scenario. Loans issued at fixed rates of interest are generally higher owing to various charges, while loans issued at floating rate of interest are highly volatile owing to the sudden changes in the market rate. This home loan prevents the customer from uncertainty, i.e. the customer need not pay more with a sudden increase in the market interest rates.
Under this Kotak housing loans scheme, The interest remains fixed for the first three years, and is re fixed based upon the existing index rate (after completion of the three years), again for a period of three years. This process is continued till the end of the loan period. Any changes in the index rate (Kotak Mahindra Bank home finance RPLR/Kotak Mahindra 1 year Retail Deposit Rate) will have its impact on the Kotak Mahindra Limited home loan interest rates only after the completion of three years. This loan basically provides a customer with the certainty of a fixed rate method, along with the flexibility of floating interest rate, thus preventing him/her from paying higher interests in case of sudden rise in the prevailing interest rates.
Fixed Deposit Linked Home Loans
Kotak FD linked home loan is gain a unique product offered by the bank, whereby, the interest rate on the loan is charged according to the Kotak Mahindra, one year retail deposit rate instead of the Retail prime lending Rate (RPLR). It means that the interest rate on the loan will change only if the 1 Year retail deposit rate changes. The customer need not necessarily have a fixed deposit with the bank in order to avail this facility. This facility is available with both Kotak Flexi home loan as well as conventional floating rate home loan.
Kotak Home improvement loans
KMB Home Loan is also provided for the purpose of renovation, extension of one’s premises or for decoration, tiling, furnishing, making changes to the home’s appearance, construction, waterproofing and all other activities undertaken towards the improvement of existing home owned by the applicant.
Kotak Mahindra Bank Home loan Balance Transfer
Kotak Mahindra Bank Home loan balance transfer enables an individual to transfer his/her existing home loan with other financial institution to Kotak Mahindra Bank at lower interest rate.
Kotak Home loan for Non Resident Indian (NRI) Applicants
Kotak bank also extends home loans to NRI’s wishing to purchase a home in India or wishing to makes extensions or renovations of the existing property owned by them. However, certain eligibility criteria’s have been laid down by the bank for individuals applying for this loan.
Kotak Mahindra Home Loan Fees and Charges
The bank levies certain types of charges on all loans that it issues. The list of charges is given below:
- Loan Processing Charges: Nil if applied online. These charges are levied at up to 1.25% of the loan amount plus applicable taxif applied offline.
- Documentation Charges:The bank levies a documentation charge at an interest of 0.5% of the loan amount.
- Stamping Charges:The bank levies stamping charge as applicable as the respective State’s Stamp Act.
- Credit administration Charges:The bank levies no credit administration charge.
- Credit appraisal Charges: The bank levies no credit appraisal charge.
- Commitment Charges: A commitment charge of 2% on the loan amount minus the disbursed amount is charged by the bank.
- Over Due Interest: The applicant must make sure that the EMI’s are paid well on time; otherwise the bank levies anoverdue fee of 2% on the EMI, calculated from the period of due date to the actual date of payment.
- Collection Charges: The bank charges collection charges standing at 30% of the cheque/instrument charges + overdue interest. However, these charges are inclusive of service tax and other applicable statutory taxes.
- Cheque Dishonour Charges: The bank levies a cheque return charge of Rs.750,
- Swap Charges:These charges stand at Rs.500 per swapping instance.
- Prepayment/Foreclosure Charges: Prepayment is a facility offered by the bank wherein the customer can repay the entire loan amount before completion of the original tenure. However, certain things are to be kept in mind before opting for this option. In case, the applicant is an individual having applied for a loan under floating rate of interest, the bank allows the foreclosure of the loan without any prepayment charge. However, for every non individual loan under floating rate of interest term loan, the bank does not allow prepayment before the expiry of a period of 6 months from the date of the first EMI. It means a minimum of 6 EMI’s have to be paid by the applicant before them applying for Kotak home loans foreclosure. Having completed this period, the applicant can foreclose his loan by paying a prepayment charge of 4% of the principal outstanding amount+ 4% on amount prepaid in the last 12 months of the loan.
- Duplicate No Objection Certificate(NOC)/No Due Certificate: The applicant can also apply for a no Due certificate, if he so requires, he can obtain the same by paying Rs.500 per NOC
- Solvency Certificate: The bank also issues a solvency certificate, if required by the applicant. The bank charges Rs.10000 for issuance of such a certificate.
- CIBIL copy Charges: The bank also issues a copy of the credit information report, if required by the applicant at a minimal charge of Rs.50.
- Amortization Schedule: In case the applicant wishes to get a detailed statement of his account displaying his loan transactions in a chronological order, he/she can do so by paying Rs.250. However, such an amortization schedule is issued once on a yearly basis without any charge.
- APAC Re-schedulement: The bank extends this service at an interest rate of 1% on the principal outstanding amount.
- Part foreclosure charges:The bank also allows for part prepayment of the loan. However, a minimum of 6 months gap has to be kept between the part payment and the first EMI date. The bank allows a free part payment in case, the applicant wishes to pay off his loan amounting to 25% of his/her outstanding amount. However, if the applicant chooses to exceed the above said limit, then the bank charges him/her with an interest of 4% on excess part prepayment amount, i.e. on the amount reached after deduction of the eligible part prepayment amount. However, in case of individual borrowers having availed loan under floating rate of interest the bank does not levy any charge.
- Re-booking of loans: In case of change in borrowing structure, change of property/asset/collaterals , the existing loan has to be re-booked. The bank allows this facility at an interest of 0.5% on the outstanding loan amount or Rs. 10,000 per event of property, whichever is higher.
- Change in installment due date: The bank also facilitates changes in the EMI date. The charges for this service stand at Rs.5000 + broken period interest, if any or 0.5% of the outstanding loan amount + broken period interest, if any, whichever is lower.
- Change of Property/Collaterals: The bank allows this facility at an interest of 0.5% on the outstanding loan amount, whichever is higher.
- Re-issuance of Pay order: The bank also extends this facility at a minimal rate of RS.100 per instance.
- *It is to be kept in mind that services taxes and other levies as applicable will be charged.
How to Apply for Kotak Mahindra Home Loan?
You can apply for kotak mahindra bank home loan online and also compare it with other bank’s home loan. Go to Paisabazaar.com and click on home loan, then fill the form, check your eligibility and pick the kotak mahindra bank from the list.