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Home Loan

Kotak Mahindra bank offers Home loan schemes to its customers. Kotak Ltd. Home Loan helps an individual to buy his/her dream house. Home loan from Kotak Limited comes in a variety of options.


Kotak Mahindra Bank Home Loan is available in many variants:
 

  1. Kotak Flexi home loan:
     

Kotak 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. Kotak Flexi 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, andis 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.

 

  1. Kotak 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 1 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.

 

  1. Kotak Home improvement loans:

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Kotak Mahindra Bank 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.

 

  1. Kotak Mahindra Bank Home loan balance transfer:


Kotak Mahindra Bank Home loan balance transfer enables an individual to transfer his/her existing home loans with other financial institution to Kotak Mahindra at lower interest rates.

 

  1. Kotak Mahindra Bank Home loan for Non Resident Indian (NRI) applicants:


Kotak bank also extends home loans TO NRI’s wishing to purchase a home in Indi 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:

Features of Kotak Mahindra Housing loan

  • Lower EMI’S: Owing to lower rate of interest, the loans offered by Kotak Mahindra Bank have lower EMIs.
  • Kotak Ltd. Home Loan Amount: An applicant can apply for a Kotak Mahindra Limited Home loan amounting up to 90% of the cost of the property, in case of Kotak Mahindra Bank home loan. However, he can borrow only up to 80% of the cost of the property in case of loans lying between Rs.20 lakhs-75 lakhs and up to 75% of the cost of the property for loans above Rs.75 Lakhs.
  • In case of commercial property loans, or loans against existing properties, an applicant can avail up to 60% of the cost of the property as loan.
  • Tenure: Home Loan from Kotak Mahindra Bank is issued for a maximum period of 20 years. However, the tenure varies depending upon the applicant’s business profile.
  • Simple Documentation: Kotak home loans are issued easily with simple documentation. This saves the applicant from the unnecessary burden of arranging for papers.
  • Fast Approval: Kotak offers the practice of quick Turnaround time (TAT) i.e. the time taken for sanctioning of the loan.
  • Doorstep Facility: Kotak also provides its customers doorstep facility. A dedicated executive is given the charge of taking care of the loan requirements and the formalities to be done.
  • Kotak Mahindra Bank Home loans can be applied for by individuals either jointly or solely.
  • The bank also provides the facility of extending one’s eligibility by ways of adding a co applicant while applying for Kotak Mahindra Housing loan. In this case, the co-applicant’s income is also taken into consideration before deciding the loan amount.
  • The Co-applicants can be the applicant’s parents, spouse or even children above the age of 18 years.
  • The co-owners of the property, against which Kotak Housing loans are sought, have to be a co applicant for the loan. However, it is not necessary for a co applicant to be a co-owner of the property in question.
  • The bank generally keeps the property under mortgage, as security till the maturity of the loan period. However, in certain cases, the applicant can also provide additional securities in the form of LIC policies or term deposit receipts issued by Kotak Mahindra bank.
  • The Kotak Mahindra Bank home loan offers a free personal accident insurance cover up to Rs.1 crore, thus insuring the applicant against any unforeseen incidents.
  • Pre-approval facility: The bank also extends pre-approval facility to its customers. It means that an applicant can avail for a loan based on his current income, assets and employment information even before having actually purchased a property. This facility is extended to the customers in order to enable them to close a deal as soon as they come across a good property which requires immediate funding. However, these sanctions are only valid for a period of 6 months.
     
  • Key Features of Home improvement loans:
     
  • An individual can avail loans up to 90% of the cost of improvement for loans below Rs.20 lakhs, up to 80% for loans lying between Rs.20 lakhs to Rs.75 lakhs and up to 75% for loans lying above Rs.75 lakhs. The amount of home loans sanctioned is subject to the value of property as judged by the bank.
  • The individual can apply for the loan maximum period of 15 years. However, it depends on the individual’s nature of business.
  • This loan can be applied for by individuals either solely or jointly.
  • The 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.
     
  • Key Features of Kotak home loan transfer:
     

  • Allocates home loan in order to pay off an existing home loan with other banks.
  • Loans are issued at an interest rate that is lower than the existing home loan interest rate.
  • It also provides extra cash in the form of top up loan, to secure some extra cash if required.
  • Hassle free and simple process of acquiring loan, hence makes it convenient for the applicant.
  • Kotak Home loans are helpful if,
  • The applicant wishes to opt for a lower interest rate,
  • The applicant wishes to pay off the loan much before the original Kotak Home Loan repayment period.
  • An individual can avail loans up to 90% of the cost of improvement for loans below Rs.20 lakhs, up to 80% for loans lying between Rs.20 lakhs to Rs.75 lakhs and up to 75% for loans lying above Rs.75 lakhs. In case of commercial property loans, or loans against existing properties, an applicant can avail up to 60% of the cost of the property as loan. However, the balance transfer amount will be subject to the outstanding amount of the original loan.
  • The applicant can opt for a 20 years repayment period, or the remaining repayment period, whichever, is lower. The tenure varies depending upon the individual’s business profile.
     
  • The Kotak Mahindra Bank home loan eligibility criteria and the documentations required for availing this facility is same as Home improvement loans.
     
  • Key Features of Kotak home loan transfer:
     
  • Allocates home loan in order to pay off an existing home loan with other banks.
  • Loans are issued at an interest rate that is lower than the existing home loan interest rate.
  • It also provides extra cash in the form of top up loan, to secure some extra cash if required.
  • Hassle free and simple process of acquiring loan, hence makes it convenient for the applicant.
  • Kotak Home loans are helpful if,
  • The applicant wishes to opt for a lower interest rate,
  • The applicant wishes to pay off the loan much before the original Kotak Home Loan repayment period.
  • An individual can avail loans up to 90% of the cost of improvement for loans below Rs.20 lakhs, up to 80% for loans lying between Rs.20 lakhs to Rs.75 lakhs and up to 75% for loans lying above Rs.75 lakhs. In case of commercial property loans, or loans against existing properties, an applicant can avail up to 60% of the cost of the property as loan. However, the balance transfer amount will be subject to the outstanding amount of the original loan.
  • The applicant can opt for a 20 years repayment period, or the remaining repayment period, whichever, is lower. The tenure varies depending upon the individual’s business profile.
  • The Kotak Mahindra Bank home loan eligibility criteria and the documentations required for availing this facility is same as Home improvement loans.

Kotak Home loan Eligibility criteria

  • An applicant must be minimum 21 years of age in order to avail this facility
  • The maximum age limit for availing the Kotak Mahindra Limited Home Loan is set at 65 years.
  • A salaried or self-employed professional with regular income can apply for a Kotak Home Loan.
  • However, a non-salaried professional who earns more than the minimum income required is also eligible for the Kotak Mahindra Limited Home Loan
  • The 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.

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 Home Loan Interest Rates

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 rate of interest charged, on a floating basis, depend on the tenure of the loan and the amount of loan sought. Moreover, the bank does not follow a uniform pricing principle on the interest rate context and interest rates are determined on the basis of the analysis of the home loan application submitted with the bank. There is however a maximum limit on the interest rate charged by the bank and the following table throws the required light on the rate of interest charged by the bank based on the tenure and the loan amount.
 

Salaried Self Employed Processing Fees & Charges
8.50% 8.50% Rs. 10000


Fees and Charges: The bank levies certain types of charges on all loans that it issues. The list of charges is given below:
 

  1. Loan Processing Charges: Also known as origination charges. These charges are levied at up to 1.25% of the loan amount plus service tax.
  2. Documentation Charges: The bank levies a documentation charge at an interest of 0.5% of the loan amount.
  3. Stamping Charges: The bank levies stamping charge as applicable as the respective State’s Stamp Act.
  4. Credit administration charges: The bank levies no credit administration charge.
  5. Credit appraisal charges: The bank levies no credit appraisal charge.
  6. Commitment Charges:  A commitment charge of 2% on the loan amount minus the disbursed amount is charged by the bank.
  7. Over Due Interest: The applicant must make sure that the EMI’s are paid well on time; otherwise the bank levies a overdue fee of 2% on the EMI, calculated from the period of due date to the actual date of payment.
  8. 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.
  9. Cheque Dishonor Charges: The bank levies a cheque return charge of Rs.750,
  10. Swap Charges: These charges stand at Rs.500 per swapping instance.
  11.  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 they 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.
  12. Duplicate No objection certificate/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
  13. 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.
  14. 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.
  15. 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.
  16. APAC Re-schedulement: The bank extends this service at an interest rate of 1% on the principal outstanding amount.
  17. 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.
  18. Rebooking of loans: In case of change in borrowing structure, change of property/asset/collaterals etc, the existing loan has to be rebooked. The bank allows this facility at an interest of 0.5% on the outstanding loan amount, whichever is higher.
  19. 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.
  20. Change of property/collaterals: The bank allows this facility at an interest of 0.5% on the outstanding loan amount, whichever is higher.
  21. Re-issuance of Pay order: The bank also extends this facility at a minimal rate of RS.100 per instance.
  22. *It is to be kept in mind that services taxes and other levies as applicable will be charged.

Documentation

  • The application form with self-attested photos duly signed
  • Copy of Driving License, Passport or Voter’s ID card as Identity Proof
  • Address proof
  • 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.
  • 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:
     

  • 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 10th certificate 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
     
  • Process of disbursement of the Kotak Mahindra Limited Home loan:
     

  • The bank disburses the loan amount once all the formalities pertaining to the documentation and the legal, credit and technical appraisals of the property is complete.
  • Bank disburses the loan amount only after it gets a proof about the borrower’s own contribution towards the purchase of property. Own contribution refers to the difference amount between the coast of property and the amount of Kotak Mahindra Limited Home loan sanctioned.
  • The bank disburses the loan amount depending upon the requirement of the funds and the progress of construction, as assessed by the bank. The bank can either disburse the entire amount at a go or at suitable installments. The disbursement method is left at the discretion of the bank.

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.

Kotak Mahindra Bank Home Loan
(4.5/5 ) 2 Reviews
Home LoanHome Loan
5/5

Very good services

This was my first experience with Kotak Bank and it was very good. I wanted to apply for a home loan and the bank agents helped me completely. The loan scheme got approved at very low interest rate with very less documents.

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Posted on: Jan 10 , 2017
Home LoanHome Loan
4/5

Good

Kotak bank provides very good services and I have applied for a home loan which was approved at 8.75% only. I am a regular user of Kotak services and they are very good. The bank has very good products and the service quality is very high.

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Posted on: Jan 9 , 2017