Kotak Mahindra Bank offers personal loans at an attractive interest rate starting as low as 10.25% 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.
Kotak Mahindra Bank personal loan interest rate starts at 10.25% 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 10.25% 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 Home Renovation
|10.25% p.a. onwards|
|Personal Loan Balance Transfer||10.25% 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 10.25% p.a. but may vary based on interest rate of current outstanding loan, applicant profile, etc.
Comparison between Kotak Mahindra Bank and other Banks/NBFCs
|Banks/NBFCs||Interest Rates (per annum)|
|Kotak Mahindra Bank||10.25% onwards|
|SBI||9.60% – 13.85%|
|HDFC Bank||10.25% – 21%|
|PNB||8.90% – 14.50%|
|ICICI Bank||10.50% – 19%|
|Axis Bank||10.49% – 24%|
|IndusInd Bank||11.00% onwards|
|IDFC First Bank||10.49% – 23%|
|Bajaj Finserv||13.00% onwards|
|Tata Capital||10.99% onwards|
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 with whom you are applying for a loan with may help you secure a lower rate of interest on your personal loan.
Q1. How does the interest rate on a Kotak Mahindra Bank personal loan vary?
Kotak Mahindra Bank personal loan interest rate starts at 10.25% 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. Is Kotak Mahindra Bank personal loan interest rate fixed or floating in nature?
Kotak Mahindra Bank offers personal loans at a fixed rate of interest. At present, no floating interest rate personal loans are offered by Kotak Mahindra Bank.
Q3. Can a higher income help me avail a lower rate of interest on my Kotak Mahindra Bank personal loan?
Higher income generally indicates greater financial stability and better repayment capacity which lowers the risk of defaulting on repayments and may help you avail a lower rate of interest on your Kotak Mahindra Bank personal loan.
Q4. How much interest is charged if I opt for Kotak Mahindra Bank’s balance transfer facility?
Kotak Mahindra Bank personal loan balance transfer interest rate starts at 10.25% p.a. However, interest rate applicable to a particular applicant varies with several factors such as the loan amount, tenure, applicant profile, etc.
Q5. How does GST impact personal loan interest rates ?
Personal loan interest rates are not affected by GST. However, an 18% GST is now applicable on charges such as processing fee and prepayment penalty.