Kotak Mahindra extends personal loans to all individuals who require funds for meeting certain sudden and unavoidable expenses like wedding, child’s education, travelling, renovation and such other expenses which although not very high, but require a substantial amount of funding.
- The bank allows a loan amount ranging from a minimum of Rs. 50000 to a maximum of Rs.5 lakhs. However, amount of loan to be disbursed is left at the sole discretion of the bank.
- The bank allows flexible repayment options. A salaried professional can avail this loan for a period of 12-60 months.
- The bank provides doorstep facility to individuals interested in availing a loan with the bank.
- Keeping in mind the convenience of its customers, Kotak Mahindra bank provides loans with a simple documentation process. It follows this method to protect its customers from unnecessary burdens of arranging too many documents.
- Along with quick documentation, it also adopts quick processing methods in order to avoid a long waiting period of loan sanctioning for the applicant. It ensures a quick loan disbursement
- These loans are easy loans, made available to customer without any security or collateral. The applicant need not keep any security with the bank for obtaining a personal loan.
- These loans come at low interest rates, thus making the EMI’s smaller and easier for the applicant to payback.
Before applying for personal loan from Kotak Mahindra bank, the applicant must fulfill certain criteria. Below is a list of eligibility criteria required for the applicant to match so that he or she will be eligible to seek a loan from the bank.
- Age: A salaried employee between the age group of 23-58 years can apply for a loan with the bank.
- Business Profile: The applicant must be an Indian resident employed at a Public Ltd. CO/MNC’S/large private companies.
- Income: The applicant should have a net monthly income of Rs.25000 in order to avail this loan.
- The applicant should at least be a graduate with a minimum working experience of two years.
- The applicant should also have spent a minimum of 1 year in the city, where he/she seeks t avail the loan.
- The applicant also should provide a running landline number of his current residence.
- The applicant cannot apply for a postponement of the EMI amount.
- Application Form: An application form filled with all the necessary details and credentials of the applicant is required. The applicant must make sure that the details filled are accurate and the name in the application form appears as is mentioned in other documents provided by him as proof.
- Identity Proof: Copy of Passport / Voter ID card / Driving License/Overseas citizen of India card/Person of Indian origin card. 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.
- Address Proof – Copy of Ration Card / Electricity or Telephone Bill / Rental Agreement / Passport/Bank account statement/PIO card/Overseas citizen of India card/Latest IT return. 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: PAN card/.Passport copy: Any one of the documents can be submitted as a valid age proof because these documents state the correct age of the applicant.
- 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.
- Last 3 months’ bank statement or last 6 months’ bank passbook. These documents seek to verify the applicant’s income status prior to making the application for loan which also depicts the individual’s financial picture depicting the credit worthiness of the person.
- Latest Salary Slip or current dated Salary Certificate with latest Form 16 which is used to legally depict the current net salary of the individual and to check whether it matches the level of minimum net monthly income as laid down in the eligibility criteria checklist.
- Photographs: 1 passport size photograph is required.
- Ownership Proof: Electricity Bill/Water Bill/Sales deed/Receipt of tax paid. Any one of the specified documents can be provided as ownership proof.
The Kotak Mahindra bank levies certain types of charges on all Personal loans that it issues. The list of charges is given below:
- Loan Processing Charges: Also known as origination charges. These charges are levied at up to 2.00% of the loan amount plus service tax.
- Documentation Charges: The bank levies no charges on documentation, in the case of personal loan.
- 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 credit appraisal charge up to 5% of the loan amount. However, the upper limit for such charge is fixed at Rs.7500. These charges are inclusive of service tax.
- Commitment Charges: No commitment charges are applicable.
- 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 3% 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 Dishonor Charges: The bank levies a cheque return charge of Rs.750, again inclusive of service tax and other applicable statutory taxes.
- Swap Charges: These charges stand at Rs.500 per swapping instance. These charges are exclusive of service tax. Service taxes and other statutory taxes as applicable will be levied above the mentioned charges.
- 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. This facility can be availed only after completion of twelve months of availing the loan .i.e. a minimum of 12 months gap has to be kept between the loan issuance date and the repayment date. The applicant has to give the bank one month’s notice in advance The prepayment charges stand at 5% of the principal outstanding amount. These charges are exclusive of service tax. Service taxes and other statutory taxes as applicable will be levied above the mentioned charges.
- 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, exclusive of service tax and other statutory levies as applicable.
- 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+ S.T and other statutory charges as applicable.
- 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+ S.T and other statutory charges as applicable. However, such an amortization schedule is issued once on a yearly basis without any charge.
- An applicant can also apply for foreclosure of his loan account i.e. pay off his loan before the expiry of the original tenure. However, the applicant must remember a few points before applying for foreclosures:
- The applicant cannot apply for a foreclosure before the expiry of 12 months from the date of the first EMI to be borne by the applicant.
- A 30 day notice period for prepayment of the loan is compulsory. The applicant needs to inform the bank well in time by ways of writing or E-mail.
- On completion of the intimation period, the bank will issue a foreclosure statement to the applicant.
- The full payment of the loan can be done trough DD/Cheque’s/Cash or a demand Draft in favor of Kotak Mahindra Bank. The same has to be deposited at the bank at least 7 days before the next Emi due date.
- The closure of loan account in the bank’s books is subject to realization of the payment cheque.
- The bank dispatches a No due certificate and all the post dated cheques, given by the applicant to the bank at the applicant’s correspondence address within 15 working days of the closure of account.
- The bank levies a foreclosure charge of 5% on the outstanding loan amount. These charges are exclusive of service tax. Service taxes and other statutory taxes as applicable will be levied above the mentioned charges.
The user has to make full payment of the outstanding amount. Part prepayment is not an option with the bank.
Changing of EMI Date
Keeping in mind the convenience of its customers, the bank provides the flexibility of changing the existing EMI date to its applicant’s. However, certain charges in the form of rescheduling charges and PDC swap charges per instance are levied by the bank in this case. The applicant has an option of choosing from three available dates i.e. the 1st, 5th, and 10th of every month. In order to apply for the same the applicant needs to provide a written request to the bank stating the reason for change of the existing EMI date, along with the rescheduling charges. The same has to reach the bank either 7 working days before the next EMI due Date or within 7 working days after the EMI due date.
The bank also provides the facility of changing one’s mode of payment to ECS from PDC. For availing this facility, the applicant needs to sign an ECS mandate form available at the bank. Along with the mandate form, the applicant also needs to submit the below mentioned documents:
- One security cheque drawn in favor of ‘KOTAK MAHINDRA BANK’. The cheque should be undated and blank. At the bottom of the cheque the applicant needs to mention ‘Not More than the loan Amount’.
- Six security cheques drawn in favor of ‘KOTAK MAHINDRA BANK’. The cheques should be undated and blank. At the bottom of the cheque the applicant needs to mention ‘Not More than three times the EMI amount’.
However, the applicant must keep in mind that PDC swapping has to be done either 7 working days before the next EMI due Date or within 7 working days after the EMI due date. A PDC swapping charge of Rs.500 + service tax and other applicable taxes will be levied by the bank.
Change of address
In case of a change of address, the applicant needs to inform the bank well in time to avoid confusions. The applicant can do so by forwarding a request letter in written to the bank’s customer care department informing about the changes in the correspondence address. He/she needs to enclose copies of electricity bill/passport/ration card which carry photocopy proof of the applicant’s new address. The new address is reflected in the bank’s account within two working days after submission of the required documents.
- In case, the applicant wants to view his repayment schedule, he/she can do so by visiting the bank’s website and downloading the same for free.
- If the applicant requires a hard copy of the same, he/she can place a request to the bank’s customer care department through e-mail, phone, and letter or by simply visiting the customer care branches of the bank.
- The bank dispatches the schedule at the applicant’s correspondence address within two working days of having received the request.
Issuance of a No Objection Certificate
The applicant can also demand for a No objection certificate from the bank after closure of his/her personal loan account. However, it’s to be kept in mind that in order to receive a NOC from the bank, the applicant should not have any penal outstanding.
In Case of a matured loan, A NOC is issued within a period of 15 working days of the loan termination date. The request for a NOC can be placed via e-mail or a letter.
In case of a foreclosed loan, The NOC is issued within a period of 15 working days of the loan termination date
In case of a TOP-up loan, NOC on the original loan being foreclosed will be issued within a period of 15 working days of the loan termination date.
The applicant can also apply for a break up and calculation of the loan account by placing a request trough email and letter of by visiting the bank’s customer care branch. The same will be couriered to the applicant at their correspondence address within a period of 4 working days.