Kotak Mahindra Bank offers personal loans at an attractive interest rate starting as low as 10.50% p.a. with loan amounts of up to Rs. 20 lakh. The disbursed amount can be used to meet various financial needs including medical expenses, home renovation, vacation, etc. These loans come with flexible repayment tenure and can be availed easily with minimal documentation. The following are key aspects of Kotak Mahindra Bank personal loan interest rate including the calculation method used by the bank, ways to get low interest rates on Kotak Mahindra Bank personal loan and more.
Table of Contents:
- Kotak Mahindra Personal Loan Interest Rates
- Kotak Mahindra Bank Interest Rate for Different Types of Personal Loans
- Kotak Mahindra Personal Loan Balance Transfer Interest Rates
- Kotak Mahindra Bank Reducing Balance vs Flat Rate Interest Calculation
- EMI Calculation Using Reducing Interest Rate
- EMI Calculation Using Flat Interest Rate
- Kotak Mahindra Personal Loan Interest Calculation
- Kotak Mahindra Interest Rate Comparison
- How to Get Low Interest Rates on Kotak Mahindra Bank Personal Loan?
- Factors Affecting Interest Rates
- FAQs
Kotak Mahindra Personal Loan Interest Rates
Kotak Mahindra Bank personal loan interest rate starts at 10.50% p.a. However, interest rates applicable to a particular applicant tend to vary based on applicant profile including credit score, income, nature of employment, loan amount, etc.
Kotak Mahindra Bank Interest Rate for Different Types of Loans
The interest rate on Kotak Mahindra Bank personal loan starts as low as 10.50% p.a. However, the interest rates applicable to approved loans may vary based on the applicant’s profile. The following table provides the interest rates for different types of Kotak Mahindra Bank personal loans:
| Personal Loan Type | Interest Rate Range |
| Personal Loan for Marriage Personal Loan for Medical Emergency Personal Loan for Travel Personal Loan for Home Renovation | 10.50% p.a. onwards |
| Personal Loan Balance Transfer | 10.50% p.a. onwards |
Kotak Mahindra Personal Loan Balance Transfer Interest Rates
The balance transfer facility offered by Kotak Mahindra Bank lets you transfer your existing personal loan from a different lender to Kotak Mahindra Bank to get better offers such as a lower rate of interest. The bank’s personal loan balance transfer interest rate starts at 10.50% p.a. but may vary based on interest rate of current outstanding loan, applicant profile, etc.
Kotak Mahindra Bank Reducing Balance vs Flat Rate Interest Calculation
Flat rate/flat balance method of interest calculation involves calculating interest on the entire loan principal amount throughout the entire loan tenure. This calculation is made irrespective of the portion of principal that has already been paid off. The fact that monthly EMI payouts gradually reduce the outstanding loan principal amount is not taken into consideration.
However, interest is computed only on the outstanding loan principal every month when the reducing balance method is used. Thus, as the outstanding loan amount decreases every month, the interest payable also decreases. Therefore, though reducing balance interest rates are often slightly higher than flat balance interest rates, you may end up saving on the total interest payout of the loan. Kotak Mahindra Bank makes use of the reducing balance method to calculate the interest payable on its personal loans.
EMI Calculation Using Reducing Interest Rate
The following table gives a sample of EMI calculations using reducing interest rate taking varying loan amounts, tenures and interest rates into consideration:
| Loan Amount (Rs.) and Interest Rate | Monthly EMI Payout (Rs.) | ||||
| 1-year loan tenure | 2-year loan tenure | 3-year loan tenure | 4-year loan tenure | 5-year loan tenure | |
| 50,000 @ 10.75% p.a. | 4,413 | 2,325 | 1,631 | 1,286 | 1,081 |
| 20 lakh @ 14% p.a. | 1,79,574 | 96,026 | 68,355 | 54,653 | 46,537 |
EMI Calculation Using Flat Interest Rate
The following table gives a sample of EMI calculations using the flat balance interest calculation method taking into account different loan amounts, tenures and interest rates:
| Loan Amount (Rs.) and Interest Rate | Monthly EMI Payout (Rs.) | ||||
| 1-year loan tenure | 2-year loan | 3-year loan tenure | 4-year loan tenure | 5-year loan tenure | |
| 50,000 @ 10.75% p.a. | 4,615 | 2,531 | 1,837 | 1,490 | 1,281 |
| 20 lakh @ 14% p.a. | 1,90,000 | 1,06,667 | 78,889 | 65,000 | 56,667 |
Kotak Mahindra Personal Loan Interest Calculation
Kotak Mahindra Bank personal loan interest rate starts at 10.50% p.a. The table below gives a sample of the total interest payout, total amount repaid and the proportion of interest in total amount repaid for varying loan amounts, tenures and interest rates.
| Loan Amount (Rs.) | Tenure (years) | Total Interest Payout (Rs.) | Total Amount Repaid (Rs.) | Proportion of Interest in Total Amount Repaid |
| 1 lakh @ 11% | 1 | 6,058 | 1,06,058 | 6% |
| 10 lakh @ 14% | 3 | 2,30,395 | 12,30,395 | 19% |
| 20 lakh @ 16% | 5 | 9,18,167 | 29,18,167 | 31% |
Kotak Mahindra Interest Rate Comparison
A comparison of the key features of a personal loan from Kotak Mahindra Bank with other top lenders in India is given below:
| Particulars | Kotak Mahindra Bank | Citi Bank | Yes Bank | ICICI Bank | Axis Bank | HDFC Bank |
| Interest Rate | Starting from 10.50% | Starting from 9.99% | Starting from 10.49% | Starting from 10.50% | Starting from 11% | Starting from 10.50% |
| Tenure | 12 to 60 months | 12 to 60 months | 12 to 60 months | 12 to 60 months | 12 to 60 months | 12 to 60 months |
| Loan amount | Up to Rs. 20 lakh | Up to Rs. 30 lakh | Up to Rs. 40 lakh | Up to Rs. 25 lakh | Rs. 50,000 to Rs. 15 lakh | Up to Rs. 40 lakh |
| Processing Fee | Up to 2.5% of the loan amount + GST and other applicable statutory levies | Up to 3% of the loan amount | Up to 2.5% of the loan amount | Up to 2.25% of loan amount plus GST | Up to 2% of loan amount plus GST | Up to 2.50% of the loan amount |
How to Get Low Interest Rates on Kotak Mahindra Bank Personal Loan?
The following ways can help you get a lower rate of interest on your Kotak Mahindra bank personal loan:
- Maintain a high credit score (750 or above)
- Have a good existing relationship with the bank
- Maintain a stable employment history
- Make timely payment of your credit card dues and EMIs
- Minimize your existing debt
Factors Affecting Interest Rates
Given below are some key factors which affect Kotak Mahindra Bank personal loan interest rate:
- Credit score: It is a 3-digit numeric summary of a person’s credit history. It helps lenders gauge a person’s credit worthiness and repayment behaviour. A good credit score not only increases the chances of your loan application being approved, but may also often result in the applicant being charged a lower rate of interest on personal loans.
- Employment details: Applicants having a steady job, stable history of employment and those working with reputed organizations may be charged a lower rate of interest on personal loans as compared to other applicants.
- Level of income: The interest charged by the lender is also influenced by the income level of the applicant. Usually, a lower rate of interest is charged on personal loans from applicants with higher incomes as they tend to have better repayment capacity and pose a relatively lower risk to the lender. However, a higher rate of interest may be charged from applicants with lower annual incomes.
- Existing relationship with the lender: Having a good pre-existing relationship with the lender whom you are applying for a loan with may help you secure a lower rate of interest on your personal loan.
FAQs
Q1. What is the interest rate on a Kotak Mahindra Bank personal loan?
Kotak Mahindra Bank personal loan interest rate starts at 10.50% p.a. Specific interest rates applicable to an applicant may however vary with the applicant’s income, credit score, loan amount, loan tenure desired, etc.
Q2. Who can avail a personal loan from Kotak Mahindra Bank?
All salaried individuals can avail a personal loan from Kotak Mahindra Bank, provided they meet the bank’s eligibility criteria.
Q3. What is the minimum and maximum loan amount offered by Kotak Mahindra Bank?
The minimum loan amount available on Kotak Mahindra Bank personal loans is Rs. 50,000 and the maximum is Rs. 20 lakh.
Q4. How can I repay my Kotak Mahindra bank personal loan?
You can repay your Kotak Mahindra Bank personal loan through EMIs within a tenure ranging between 12 to 60 months.
Q5. How long does Kotak Mahindra Bank take to approve personal loans?
Once the loan application form and the required documents are submitted as per the bank’s criteria, Kotak Mahindra bank aims to approve and disburse its personal loans within 48 hours.
Q6. Do I need to open an account with Kotak Mahindra Bank to secure a loan from them?
No, it is not mandatory to open an account with Kotak Mahindra Bank to secure a personal loan from them. However, having an additional banking relationship with them can help you secure several complimentary value-added services along with the loan.
