Personal Loan - Know Answers To All The Personal Loan FAQs at Kotak Bank

Frequently Asked Questions

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What can a personal loan be used for?

Personal loan requires no collateral, and that’s why it is an unsecured loan. It can be used to fulfill many of your day-to-day as well as emergency needs. Kotak Mahindra Bank provides the borrowers with loan amounts from Rs. 50,000 to Rs. 40 lakhs. So, whether your expenses are small or big, our personal loan can come in handy at the time of your need.

You can plan that dream wedding with the help of Kotak Bank’s marriage loan. Or use our travel loan to rejuvenate at your favourite holiday destination. Renovate your home and transform your living space with a home renovation loan from Kotak Mahindra Bank. You can even take care of unplanned expenses such as medical emergencies with Kotak’s medical emergency loans. No need to dip into your hard-earned savings to meet your financial needs.

How is the Personal Loan interest rate calculated?

Personal Loan interest rate is the amount a lender charges you every month for borrowing money from them. You can easily calculate Personal Loan interest rate using a Personal Loan calculator.

You can easily calculate Personal Loan Interest Rate using a Personal Loan Calculator.

Does a personal loan affect your credit score?

A personal loan can impact your CIBIL score for personal loan either negatively or positively. If taken while already in debt, it can have a negative impact. At the same time, its timely repayment will boost your overall score.

If taken while already in debt, it can have a negative impact, while its timely repayment will boost your overall score.

What are the benefits of availing of a personal loan from Kotak Mahindra Bank?

Kotak Mahindra Bank’s personal loan is available within the shortest possible time, and the documentation is minimal and hassle-free. 

Interest rates start from 10.99% p.a., and the personal loan charges are also low. You can use the personal loan EMI calculator to make the loan affordable. Moreover, the prepayment facility helps you reduce the loan burden whenever you have additional funds.

Can I apply for a small personal loan online?

Since it requires no collateral, you can apply for a small loan through a simple online process. Please remember that, we only offer personal loans to salaried individuals.

Please do keep in mind that certain institutions only offer personal loan to salaried individuals. 

What documents should be kept handy for new and existing customers?

The documents required for personal loan application are:

1. Proof of Identity
2. Proof of address
3. Salary slip/Bank Statement

● Proof of Identity

● Proof of address

● Salary slip/Bank Statement/Form 16 for Salaried individuals and Previous Year ITR/ P&L Statement and Balance Sheet/ Bank Statement for self-employed applicants

What are the different types of personal loans?

Kotak Mahindra Bank offers personal loans for wedding travel, medical needs, education, vehicle buying, debt consolidation, etc. 

Can I get a personal loan if I have a home loan?

Yes, you can get a personal loan even if you have a home loan. You just need to mention the existing loan details and the EMI. You can also opt for top-up home loans, which are like personal loans.

How do I calculate my personal loan eligibility?

The personal loan eligibility for availing a loan from Kotak Mahindra Bank is as follows:

● Age: 21 to 60 years

● Qualification: Graduate

● Employment: minimum 1-year work experience with MNC/Public Limited/Private Limited Company

● Income: 

- Customers holding Salary Account with Kotak Bank: Rs. 25,000

- Customers who don’t have a Salary Account with Kotak Bank : Rs. 30,000

- Kotak group employees: Rs. 20,000

How can I get personal loan repayment status updates?

The repayment status update is sent to you regularly by Kotak Mahindra Bank. You can also check the status online by logging into your online banking account. 

How is the Personal Loan processing fee calculated?

The personal loan processing fee is usually a nominal amount that the borrower must pay. It ranges up to 3% of the loan amount, plus applicable taxes. The same will be deducted from the loan amount at the time of disbursal.

What do you mean by these personal loan terms - ‘Settlement’, ‘Default’ and ‘Closed’?

Loan ‘settlement’ is when you pay a lump sum amount, which is lower than the outstanding loan amount, to pay off the loan ultimately. 

This is allowed when you face an unavoidable financial crisis and cannot pay the loan on time. The lender might allow a repayment holiday and then ask you to pay a lump sum to write off the loan. This is called ‘settlement’.

‘Closed’ is when you pay the loan on time through regular personal loan EMI and the loan amount is completely paid off as stipulated.

‘Default’ is when you default on your personal loan EMI and don’t pay it on time. 

What are the five easy steps to get a personal loan?

● Determine the total amount of personal loan that you need as per your requirements

● Check the loan eligibility

● Calculate monthly installments

● Approach your nearest Kotak Mahindra Bank branch or visit the official website to apply

● Submit documents