Kotak Personal Loan Online – Check Loan Eligibility and Interest Rates

Going through a financial crisis and need funds quickly? Applying for the Kotak personal loan online may be a good idea! Kotak Mahindra Bank, previously called Kotak Mahindra Finance Limited, was originally established as a non-banking financial company. However, in February of 2003, RBI or Reserve Bank of India gave the company the license to offer banking services. Kotak Mahindra Finance Limited is the very first company in India’s banking history to turn into a bank. As of 2013, the bank boasts over 1,000 ATMs and 500 branches across the country. Now, Kotak Mahindra bank offers personal loans at affordable interest rates and excellent terms.

What you should know before applying for Kotak personal loan online

Kotak personal loans are great for when you need to tide over short-term financial difficulties. These are unsecured loans that provide you with a lump sum amount. You can spend the money on utility bills, home improvement, vacation, wedding or education. You may also apply for a Kotak personal loan online when facing medical emergencies or other sudden expenses. Unlike auto loans or home loans, personal loans do not have a specific purpose. You can use the money however you like. Here at Loan Sumo, we understand that no two people have the same financial needs. That is why we help each individual borrower to find the best personal loans for his/her needs.

Even though personal loans do not come with any hard rules about how you should spend the money, you should be wise. Lenders usually do not interfere with your decision. However, here at Loan Sumo, we believe in responsible lending. That is why we would suggest you to carefully evaluate your needs and see if a Kotak personal loan fits all your requirements. For example, if you are borrowing to invest in your business or education, you may find better deals in business loans or student loans. Make sure to explore all your options before making up your mind. Here are a few key features and benefits of Kotak personal loan online applications that should help in the decision-making process.

Features and benefits:

  • Kotak personal loans are available to both salaried and self-employed individuals.
  • Borrowers must be between the ages of 21 and 58 years.
  • Depending on income and repayment capability, you may be able to borrow anywhere from Rs. 50,000 to Rs. 15 lakhs.
  • With Kotak personal loan online applications, you get the “Bank Doorstep Service.” When you request this service, a representative from the bank comes to your house and clarifies any doubts you may have about the loan.
  • Kotak personal loans come with flexible repayment options and long tenures. The loan term may range from 1 to 5 years.
  • These are unsecured loans, which means you do not need to provide any asset or property as collateral.
  • Kotak personal loans are also famous for their minimal documentation, affordable interest rates, and quick approval.

Kotak personal loan top up

Do you have an existing loan from another bank? If you do, top up is a feature that can help you get additional money when transferring that loan account to your Kotak account. If you have a consistent and timely repayment record on that existing loan, you are sure to get a good top-up deal. You may even get to enjoy lower interest rates and charges when you transfer the loan account to Kotak. Currently, top up on Kotak personal loans starts at 11.50%.

How to calculate Kotak personal loan interest and charges?

Before you apply for a Kotak personal loan online, you should find out how expensive it is going to be for you. Figuring out the cost beforehand will not only help you to pick the perfect loan offer, but it would also let you sketch out a repayment plan. Let’s take a look at some of the factors that can influence the interest rates and charges of the Kotak personal loans.

Salary:

Your income determines how much you will be able to borrow. The higher the salary, the bigger the loan amount. It is simply because high-income individuals are seen as “low-risk” borrowers. They have high repayment capabilities, which is why banks are more eager to lend them high amounts of money at favourable interest rates.

Loan amount:

Of course, you can only borrow as much as you can afford to repay. The bank will not lend you beyond your repayment capacity. However, did you know that higher loan amounts have lower interest rates? So, the more you borrow, the less expensive the loan will be in terms of interest rates.

Employer category:

The interest rate on your Kotak personal loan may be dependent on your employer. The bank has a list of companies and they are divided into separate categories. The categories are defined based on factors such as company reputation, size and existing relationship with the bank. If you work in a company from the top tier categories, you will likely get low rates of interestand attractive discounts.

Loan tenure:

Like most online cash loans, personal loans are intended to take care of your short-term financial needs. That is why the loan term ranges from 1 to 5 years. The tenure can heavily influence the overall cost of the loan. With a lengthy loan term, you will get small monthly instalments. However, you will also pay more in interest in the end. So, think carefully before deciding on the tenure.

Here’s a quick list of Kotak personal loan rates and charges. You can carry out a quick calculation based on the factors mentioned above and see if the loan fits your budget.

For salaried

Loan amount Rs. 1 Lakh to Rs. 15 Lakh
Tenure 1 to 5 years
Interest rates 10.99% – 18.15%
Processing charges Up to 2.5%
Part prepayment charges Not allowed
Pre-closure charges Up to 5% (only allowed after 12 EMIs)