Kotak Mahindra Bank

Kotak Mahindra Bank Home Loan

Apply Kotak Mahindra Bank Home Loan @ 8.9%
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Interest Rate

8.9%-9%

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Processing fee

Upto 0.25%

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Loan Tenure upto

25 years

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LTV (Loan to value)

75% to 90% of property value

About Kotak Mahindra Bank Home Loan

There is no doubt that building a home is no easy job. Not only does it need a lot of time and investment, but you have to actively keep a close watch on the construction to ensure that everything falls into place properly. The biggest factor in all of this is the cost. A home can cost you a fortune, but at the end of the day, it is worth going through the trouble to sleep peacefully in your own home, without the burden of paying someone else rent.

That being said, gathering massive fund is not an easy feat, which is why banks offer to help you out with Home Loans. You can use the funds to either construct a home or get a ready built one. Kotak Mahindra Bank is one such organisation which can help you turn your dream home into a reality.

Kotak Mahindra Bank is a private sector bank that was established in the year 1985. It provides Home Loans that come with various facilities and services for a smooth and pleasurable home-buying experience. These Home Loans allow you to gather funds to either buy a house that is constructed or under construction, or fund the construction of a house on an empty plot.

Kotak Mahindra Bank Home Loan

Interest rate

8.9%

Loan tenure

25 Years

Loan turnaround period

8 - 15 days

Loan to value (LTV)

Get loan up to 85% of project cost

Who can apply?

  • Self-employed professionals
  • Salaried individuals
  • Indian residents

Co-applicants

Up to 4 applicants are allowed as co-applicants

Lowest EMI

832 Per Lakh

Why Pick Kotak Mahindra Bank Home Loan?

Kotak Mahindra Bank ensures that all your needs and expectations are met whenever you are looking for a Home Loan. They understand that your needs might be different from that of others and gives you customised services and facilities along with a Home Loan. Along with zero processing fee upon online application of the loan, you get competitive interest rates starting from 8.90%.

Features and Benefits of Getting a Kotak Mahindra Bank Home Loan

Kotak Mahindra Bank ensures that all your Home Loan needs are satisfied under the same roof. Here are some attractive features and benefits of Kotak Mahindra Bank Home Loans:

  • Doorstep service: Kotak Mahindra Bank provides the best-in-class services and assistance when applying for a Home Loan. The bank assigns a Kotak Mahindra executive that can pay a visit to your home and guide you through the Home Loan. They will explain the scheme in detail and also help you arrange all the documents required.
  • Attractive interest rates: Kotak Mahindra Bank, along with great services, also gives you great interest rates. With interest rates starting at 8.85%, you are sure to get some of the best offers in the industry.
  • Easy loan disbursal: Once the legal and technical verification of the property has been done; you can get the loan disbursed into your account.
  • Insurance option: Along with getting a Home Loan, you can also avail insurance for your home. The insurance comes with an attractive premium amount that can be linked to the equated monthly instalment (EMI) to be paid for the loan.
  • Pradhan Mantri Awas Yojana (PMAY): PMAY is a Credit-Linked Subsidy Scheme (CLSS). With this, you can get a subsidy on interest rates in case you are economically weaker or get low or medium income. The Kotak Mahindra Bank provides PMAY scheme.  
  • Superfast Home Loan: In case you are a salaried individual, you can avail the Kotak Mahindra Bank Home Loan in just 4 hours after application. This comes along with zero hidden charges and zero processing fees.
  • Easy online application: Kotak Mahindra Bank strives to give you great services along with fast processing. You can quickly and easily apply for a Home Loan on the Kotak Mahindra website along with calculating your EMI and your eligibility.
  • Longer tenure: Kotak Mahindra makes sure that you can repay your Home Loan with ease. You can avail a tenure of up to 20 years to make it easier for you to repay the loan.
  • Loan amount: With Kotak Mahindra Bank, you can get a loan amount of up to 75% to 90% of the property value depending on the loan amount and property's cost.
  • Easy security for the loan: Most times, the property to be purchased will be considered as the security for repayment of your loan. However, in case there is any additional security required, you can provide the receipts of term deposits or other Life Insurance policies with Kotak.
  • Minimal prepayment charges: If you are taking a Home Loan over a floating interest rate, then you need not pay any foreclosure or prepayment charges. However, you borrow a loan with a fixed interest rate; you will need to pay a minimal amount of 2% prepayment charges.

Kotak Mahindra Bank Home Loan Interest Rates

Kotak Mahindra Bank's Home Loan interest rates are linked to its 6-month or 1-year Marginal Cost of Funds Based Lending Rate (MCLR) which is 8.80% and 8.90% respectively with effect from 01.05.2019. The bank gives you two types of interest rates, depending on what scheme you pick, floating and fixed interest rates. Below are the interest rates applicable on Kotak Mahindra Bank Home Loans:

Type of Loan Salaried Self-employed

Housing Loan

6-month MCLR + 0.05 to 6-month MCLR + 0.20: 8.85% to 9%

6-month MCLR + 0.15 to 6-month MCLR + 0.40: 8.95% to 9.20%

*The interest rates mentioned above was last updated on 03.05.2019.

Types of Kotak Mahindra Home Loans

Kotak Mahindra Bank Home Loan comes in many variants, some of which are listed below.

Home Loan

With these loans you can purchase or construct the house of your dream. This loan comes with zero processing fee for online application. You can avail a loan amount of 75% to 90% of the cost of the property under this scheme.

Key Highlights

Purpose

Home purchase and construction

Tenure

Up to 20 years

Maximum LTV

Up to 90%

Home Improvement Loans

Give your home a complete makeover with Kotak Mahindra Bank's Home Improvement Loans. Whether you want to make a new kitchen, give your walls a new look, renovate/repair/extend your existing house, these loans can help you fund the cost of renovating your house.

Key Highlights

Purpose

Funds all your home improvement needs like renovation, repairs, extension, and so on.

Tenure

Up to 15 years or retirement age (whichever is earlier)

Maximum LTV

Up to 90%

Home Loan Balance Transfer

In case you already have a Home Loan with another bank and you wish to transfer the outstanding balance to Kotak Mahindra Home Loan, you can apply for Kotak Mahindra Bank Home Loan Balance Transfer facility.

Why should opt for Kotak Home Loan Balance Transfer:

  • To reduce your interest rate and subsequent EMIs
  • To reduce your Home Loan tenure to pay off your loan faster
  • To use the house equity to get additional money for any personal needs by taking a top-up over your existing Home Loan.

Key Highlights

Purpose

Transferring the outstanding balance of your existing Home Loan from another bank to Kotak Mahindra

Tenure

Up to 20 years or remaining loan tenure which is to be transferred (whichever is lower)

Maximum LTV

Up to 90%

NRI Home Loan

Unlike most other banks and NBFCs that refuse to give a Home Loan to NRI applicants, Kotak believes that everyone should have a right to get a home of their own. Kotak Mahindra Bank provides Home Loan even to NRIs. However, you will need to fulfil some other additional criteria for the disbursement of the loan.

 Key Highlights

Purpose

Home purchase and construction

Tenure

Up to 15 years or remaining loan tenure which is to be transferred (whichever is lower)

Maximum LTV

Up to 80% for Home Loans and up to 60% for Commercial Property Loans

NRI Home Improvement Loan

Under this loan, NRI applicants can get funds for renovating, furnishing, painting, decoration, changing the look of your house, tiling, flooring, waterproofing, plumbing, electrical work, roofing, grills and aluminum windows, construction of underground/overhead water tank, borewell, paving of compound wall in their existing house in India.  

Key Highlights

Purpose

Funds all your home improvement needs like renovation, repairs, extension, and so on.

Tenure

Up to 10 years or retirement age (whichever is earlier)

Maximum LTV

Up to 80% for Home Loans and up to 60% for Commercial Property Loans

Pradhan Mantri Awas Yojana (PMAY)

PMAY is a Credit-Linked Subsidy Scheme (CLSS) announced by Prime Minister Narendra Modi with a vision of providing 'housing for all' by the year 2022. You can reap the benefits of this scheme when applying for the Kotak Mahindra Bank Home Loan. The bank offers CLSS under PMAY, that provides interest subsidy on Home Loans to eligible beneficiaries belonging to the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG) segment. You can avail this subsidy house purchase or construction, as per the prescribed eligibility criteria.

Eligibility Criteria for Kotak Mahindra Bank Home Loan

Getting a Home Loan carries a slightly long procedure, and this is because the bank wants to ensure that you will not turn out to be a defaulter, especially when a large sum like this is involved. Below are the various factors the Kotak Mahindra Bank looks into and performs a background verification before disbursing a Home Loan to you.

  • Monthly or annual income: Your net monthly or annual income is an important factor that determines your eligibility. This depends on your take-home salary after all of the deductions like Provident Funds, taxes, and also EMIs of other loans that you have applied for. This can help determine the total amount that you will be able to pay comfortably after all of your living expenses. In case you have other loans that you have applied for, consider repaying them, especially the ones with higher EMI and shorter term to increase your eligibility to get a loan.
  • Age: Your age is an important factor as it helps determine your repayment capacity. The lower your age, the more time you will have to repay the loan, making for higher eligibility. To get a loan from Kotak Mahindra Bank, you must be at least 21 years and less than 60 years old. Also, the tenure of your loan cannot exceed the retirement age for salaried employees and 65 years for self-employed individuals.
  • Credit history and score: Your CIBIL or credit score is cumulative of your past credit and repayment records. If you have a good history of timely payments of your Credit Card bills and loan repayments, then you will have a higher credit score.This is an important factor that banks take into consideration before giving you a loan. Beware that if you repeatedly miss the deadlines of your credit card bills and EMIs, your credit score will drop, making you ineligible to avail the loan. You have to make sure that your credit score is at least 650 to be eligible for a Kotak Mahindra Bank Home Loan.
  • Fixed Obligation to Income Ratio: This ratio, better known as the FOIR value, is a comparison of your total income with all of your expenditure like rent, EMIs, living expenses, etc. You will need to have a good FOIR value to be able to get a Home Loan. This is calculated to ensure that you will be able to or even comfortably pay the monthly instalments of your loan. You need to have a FOIR value of at least 0.65 to be able to get a Kotak Mahindra Bank Home Loan.
  • Property value: The amount of loan you can get from Kotak Mahindra Bank depends majorly on the value of the property in question. In case the property value is less than 30 Lakhs, then you can get a loan of up to 90% of the total property value. However, this percentage reduces as the property value gets higher. Between 30 Lakhs and 75 Lakhs, you can get a loan of up to 80% value. For properties that have a value greater than 75 Lakhs, you will only be given a maximum of 75% of the total property value as loan. You will also need to provide legal documents of the property and get it verified by the bank's legal team.
  • Co-applicant: Your eligibility can increase if there is another co-applicant with you to avail the Home Loan. You can use your co-applicant's income to pay the monthly EMIs. However, you will need to make sure that your co-applicant doesn't have many obligations, has a high income, and also a clean CIBIL record.
  • Qualifications
  • The number of dependents that are linked to you
  • Available assets and liabilities
  • Source of income
  • Savings
  • Occupation, work experience, and history

Eligibility Criteria for NRI Applicants

  • The income of Applicant's/ Co-applicant's or of both (if both are NRIs) will be considered for eligibility. If the applicant is NRI and the co-applicant is Resident Indian, clubbing the incomes is not permitted.
  • Minimum educational qualification required: Graduate 
  • Should be employed for at least 3 years 
  • Maximum age of the applicant should be 58 years at the time of loan maturity
  • Minimum Income Norms:
  • For up to 5 years loan tenure
    • Applicant's Annual Gross Salary after Currency Conversion (if required) should be minimum:
      • For Gulf Countries: Dirhams 36,000
      • For Merchant Navy: USD 20,000
  • For loan tenure of above 5 years and up to 15 years
    • Applicant's Annual Gross Salary after Currency Conversion (if required) should be minimum:
      • For USA/UK/Other Countries (except Gulf): USD 42,000
      • For Gulf Countries: Dirhams 48,000
      • For Merchant Navy: USD 26,000
  • Salary should be received through Direct Bank Credit (DBC) or Cheque and not by Cash on Weekly/Fortnightly/Monthly basis.

Loan Repayment

You can repay your Kotak Mahindra Bank Home Loan through any one of these mediums:

  • Electronic Clearing System (ECS): Under this, you can permit Kotak Mahindra Bank to deduct the EMI amount for your loan every month at a set date from your bank account. Every month, your loan's EMI amount with be automatically deducted from the account provided by you.
  • Post-Dated Cheques: In case you choose to not opt for ECS, or if there are any issues with the ECS, the bank can use a signed post-dated cheque to deduct the EMI. For this, you will need to give Kotak Mahindra Bank a few signed post-dated cheques. After the tenure of your loan is completed, unused cheques will be returned to you. However, make sure that you have enough balance in your account on the date of the cheque to ensure that the cheque doesn't get bounced.
  • Online Payment: If you think that you will be able to repay the EMI amount on your own responsibly, then you can also make the EMI payment online on the Kotak Mahindra website. However, it is recommended that you opt for one of the options above to keep your credit score clean.

Documents Required to Get a Kotak Mahindra Bank Home Loan

When applying for a Kotak Mahindra Home Loan, make sure that you have the following documents in place:

Salaried Self-Employed

Duly filled and signed Home Loan application form

Duly filled and signed Home Loan application form

2 passport-sized photographs

2 passport-sized photographs

A cheque for any processing fee involved

A cheque for any processing fee involved

Proof of education: Highest educational degree certificate

Proof of education: Highest educational degree certificate

Identity proof: Copy of Passport/ Driving Licence/ Voter ID

Identity proof: Copy of Passport/ Driving Licence/ Voter ID

Address proof: Copy of Rental Agreement/ Electricity Bill/ Ration Card/ Passport. Ensure that this document is not more than three months old.

Address proof: Copy of Rental Agreement/ Electricity Bill/ Ration Card/ Passport. Ensure that this document is not more than 3 months old.

Age proof: 10th Marksheet or Birth Certificate

Age proof: 10th Marksheet or Birth Certificate

Proof of Income: Latest salary slips or current dated salary certificate, bank statements showing salary credit and other EMI debits, and Latest ITR.

Proof of business along with the latest bank statement and latest ITR Form or Form 16, bank statement should show any deductions for other EMIs.

Signature proof: PAN Card/ Driver's Licence/ Passport/ Banker Attested Bank Account Statements.

Signature proof: PAN Card/ Driver's Licence/ Passport/ Banker Attested Bank Account Statements.

NRI applicants must provide Appointment Letter/ Employment Letter/ Contract Copy in addition to the documents for Income Proof, Identity Proof, Address Proof, and Age Proof. 

Please note that after providing signature proof, you will need to maintain this signature for the entire term of your loan.

Other Products by Kotak Mahindra Bank

As a big player in the banking sector, Kotak Mahindra Bank has many other products and financial schemes, some of which are listed below.

Personal loan

Car loan

Education loan

Gold loan

Loan Against Property

Loan Against Securities

Savings Account

Current Account

Corporate Salary Accounts

Retail Institutional Accounts

Kotak 3-in-1 Account

Demat Account

Recurring Deposit

Fixed Deposit

Senior Citizen Fixed Deposit

Tax Saving Fixed Deposit

Sweep-In Facility

Debit Cards

Credit Cards

Forex/ Prepaid Cards

Health Insurance

Life Insurance

Motor insurance

Safe Deposit Locker

Mutual Funds

Portfolio Management Service

Sovereign Gold Bond Scheme

Kotak ASBA Facility

National Pension System

NRI Banking

Salary2Wealth - Corporate Benefit

Business Loans

Commercial Vehicle

Construction & Infrastructure

Farm Equipment

Crop Loan

Agri Project

Channel Finance

Dealer Finance

Agri SME Business

Credit Card Receivables

Transportation, Logistics, Warehouse

Trade Services

Payment Solutions

Long Term Finance

Working Capital Finance

Structured Finance

Debt Capital Markets

Acquisition Financing

Risk Analysis

Asset Allocation

Investment Products

Investment Process

Research & Execution

How to Calculate the EMI for Your Kotak Mahindra Bank Home Loan?

Calculating the EMI for your Home Loan should be a crucial step you take before applying for the loan. You can easily do this on the EMI Calculator on MyMoneyMantra. This calculator considers three parameters to calculate your EMI such as the loan amount, tenure, and interest rate. After entering these three parameters, click on the Calculate button to get an instant result.

Kotak Mahindra Bank Home Loan Processing Fees

Kotak Mahindra Bank charges the following processing fees on Home Loans:

  • For all online applications: NIL processing fees
  • For women Home Loan applicants: Flat 5,000 processing fee is applicable
  • For all other applicants: Up to 10,000 + applicable taxes

Kotak Mahindra Bank Home Loan Customer Care

You can reach out to the customer care centre of Kotak Mahindra Bank on Home Loans at any time between 9 am and 6 pm from Mondays to Saturdays, except holidays. The toll-free numbers are:

  • 1860-266-2666
  • 1860-266-0811 if you are their customer already

Alternatively, you can visit your nearest branch of Kotak Mahindra Bank for any queries. You can also write to them on the Kotak Mahindra bank website, and they will get back to you on the matter.

FAQs on Kotak Mahindra Bank Home Loan

How can I calculate my Kotak Mahindra Bank Home Loan EMI?

You can use MyMoneyMantra's EMI Calculator or Kotak Mahindra Bank's Home Loan EMI Calculator to calculate EMI for the proposed loan. These tools are free of cost. All you need to do is enter the loan amount, repayment tenure, and interest rate applicable on the loan to get the desired result.

What is the maximum Loan-to-Value I can get from Kotak Mahindra Bank for a Home Loan?

You can get a maximum of 90% of the property's value in case you opt for a Home Loan Balance Transfer. If you are applying for it afresh, you will get a maximum of 80% for up to 75 Lakhs and 70% for more than 75 Lakhs.

What are the factors that determine my eligibility for Kotak Mahindra Home Loan?

The income, work experience, educational qualification, age, future expenses, and savings are some of the most important factors that determine your eligibility for the Kotak Mahindra Bank Home Loan.

Does the bank provide concession on processing fee for women Home Loan applicants?

Yes, the processing fee for the women Home Loan applicants if flat 5,000 whereas other applicants have to pay a maximum processing fee of up to 10,000.

When will my loan get disbursed?

Once the bank has done all verifications, legal and technical appraisals, and created the relevant documents for the loan, you will be able to get the loan disbursed.

Can I have a co-applicant for the Kotak Mahindra Bank Home Loan?

It is usually advised that you apply for a Home Loan along with a co-applicant to increase your loan eligibility. This can either be your spouse, your parents, or even your adult children. If you have a co-owner of the property, make sure that they are a co-applicant for the loan as well. But a co-applicant need not necessarily be a co-owner.

Can I get the loan disbursed in instalments?

In case you are constructing the property, the loan will be disbursed at regular intervals as assessed by Kotak Mahindra Bank.

Should I avail insurance for my home?

It is best that you get your home insured to be able to cope against any property damage, either human-made or natural. Along with Kotak Mahindra Bank Home Loan, you can also avail a home insurance to cover any liability.

What is the security for the loan?

In most cases, the property in the question itself will be the security for the Home Loan.

Will the sale agreement need to be registered?

It is important that any and every document related to your property is registered, along with the sale agreement between you and the seller.

Latest News on Kotak Mahindra Bank

01.05.2019: Kotak Bank profit for Q4 rises by 25%

Kotak Mahindra Bank has witnessed a net profit of 1,408 Crores for the quarter ended March 2019, a 25% increase over 1,291 Crores in the corresponding period last year. It is reported that the main source of this rise in earnings was a sharp drop in provisioning for stressed assets and a rise in other income. The bank reported a 19.1% growth rate for the full financial year with a net profit of 4,865 Crores, as compared to 4,084 Crores in the last fiscal.

08.04.2019: Kotak Mahindra Bank offers 500 Crore debt to Gaurs Group

Gaurs Group, the real estate developer has raised 500 Crores through Kotak Mahindra Prime Ltd, a subsidiary of Kotak Mahindra Bank, to pace up its construction work at Gaur City II, part of integrated township Gaur City, and commercial project Gaur City Centre in Greater Noida West. The debt funding comes at a time when NBFCs (non-banking financial companies) are undergoing a liquidity crisis.

28.02.2019: Kotak Bank lowers its lending rate by 5 bps

Kotak Mahindra Bank became the first private sector lender on Thursday to lower its lending rate by 5 basis points (bps), following the RBI's 25 bps rate cut earlier this month. Under the revised rate structure, the bank's 1-year MCLR will be 9% from 9.05%. The new rates will be effective from Friday.

Why Apply for Kotak Mahindra Bank Home Loan on MyMoneyMantra?

MyMoneyMantra ensures that interaction between you and the bank are always smooth. We guide you through every detail of the loan and also help you pick the scheme that best suits your needs. You can also avail our assistance when applying for the loan and will send an official to pick up your documents and deliver them to the bank if needed. You can rest assured that we will assist you until your loan is approved and disbursed. Also, our online EMI Calculator tool helps you calculate the accurate EMI for the proposed loan beforehand so that you can make a better decision.

How to Apply for a Kotak Mahindra Home Loan on MyMoneyMantra?

You will have visit Home Loan page of MyMoneyMantra and enter some details like where you stay, where the property is located, what loan amount is required, what your age and gender is, and so on. Once this is done, MyMoneyMantra will take you through a list of the best Home Loans available near you. You can easily pick Kotak Mahindra Bank Home Loan from this list and then proceed with your loan application

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