Kotak Mahindra Bank is a part of the Mahindra Group of Companies. What started as Kotak Mahindra Financial Services became the first non-banking finance company to be converted into a bank, i.e., Kotak Mahindra Bank after receiving a banking license from the RBI in the year 2003.

Kotak Mahindra Bank offers a wide range of products and services to individuals as well as commercial enterprises. Home loans are one of the retail products of the bank. There are many variants under the home loan and the loan is customized as per individual requirement. A home loan is provided for construction of a house, the purchase and repurchase of a house/flat, home loan balance transfer and for renovations and repairs of the existing house.

The various types of Kotak Mahindra Home Loan are:

• Home Loan
• Home Improvement Loan
• Balance Transfer Home Loan
• NRI Home Loan
• NRI Home Improvement Loan

The documents mentioned below should be submitted along with an application for a Kotak Mahindra Bank Home Loan and passport size photographs. It the loan is availed in joint names all the documents mentioned below pertaining to the co-applicant also have to be submitted along with a relationship proof.

Documents required for salaried individuals

KYC Documents

• Aadhar Card
• Voter's ID Card
• Driving Licence
• Pan Card
• Passport
• Utility bills

Age Proof

• Pan Card
• Passport
• Driving Licence

Income Proof

• Salary slips for the last 3 months
• Form 16 and ITR for the last 2 years
• Bank account statement of salary account for the last 6 months in original.
• Bank statement of any other account with other banks.
• Details of existing loans along with track record.

Documents required for the self-employed

KYC Documents

• Passport
• Voter's ID Card
• Aadhar card
• Utility Bills
• Pan Card
• Driving Licence

Age Proof

• Pan Card
• Passport
• Aadhar Card

Proof of business existence

• Registered Partnership deed in the case of Partnership Firm
• Memorandum of Articles and Articles of Association for Companies
• IT Returns for HUF
• Business profile on the letterhead
• Qualification certificate in the case of professionals

Income Proof

• Audited Financial statements like the balance sheet and P & L Account for the last 3 years along with the schedules
• ITwith income computation for the last 3 year
• Registration Proof with tax authorities as per the business type.
• ITfor HUF

Documents required for NRIs

• Copy of a valid passport with Visa
• Overseas address proof
• Appointment letter/copy of the employment contract. A translated version if the letter and contract are not in English.
• Continuous Discharge Certificate for persons in Merchant Navy
• Power of Attorney as per bank's format attested by Indian Consulate at the place of residence of the NRI customer and registered in India.
• For a fixed salary, Salary slips of last 3 months or salary certificate mentioning the name, the date of joining, designation and the salary details.
• For a variable salary, Salary slips for the last 6 months or salary certificate mentioning the name, the date of joining, designation and the salary details.
• Bank statement of NRE/NRO/FCNR account for the last 6 months and bank statement of salary account and active international account.

Property Documents required for Kotak Mahindra Bank Home Loan

Chain of all property documents along with the sanctioned map.

Assessment of the financial strength of the borrower is one of the main aspects of home loan processing and the same is done with the help of the bank statement/passbook. With the bank statement the bank can assess the following:

Financial health: The monthly average balance in the account reflects the financial health and the proper management of finance of the borrower.

Integrity: Service charges for the return of either inward or outward cheques are debited to the account of the customer. With the number of such debits, the bank can gauge the volume of cheque returns. If there are isolated cases, then it is fine. But if the returns are consistent the integrity of the customer is in question and is a red flag to the bank.

Current commitments: The bank can get an account of the current commitments with the number of various auto-debits to the account. This will help the bank to assess the eligibility of the applicant by arriving at the debt to income ratio after considering the current obligations.

Business strength: In a business account, the sales turnover by way of sales/receivables credit will give an idea of the strength of the business. If the credits are continuous, it means the business is running well and the cash flow is good. If the credits are with long gaps, it means that there is a slump in the business and the income is not consistent.

Salary credit: In respect of salary accounts, regular salary credits can be verified with the bank statement.

Spending pattern: With the relevance of debits in the account, the bank can study the spending pattern of the customer. If the customer is responsible, then the spending pattern will be regulated or else it will be erratic.

Additional Info: Also check DDA Housing Scheme

A No Objection Certificate or NOC is a document issued by the bank to the borrower in acknowledgement to the clearance of the home loan liability. It clearly mentions that the home loan account is closed, and the bank does not have any objection in restoring the rights of the property to the original owner. NOC is required for the following transactions.

• To cancel the lien on the property in favour of the bank noted in the records of the registrar of properties.
• To prove nil encumbrance while selling the property or while applying for another loan against property.
• To prove to the insurance company that the rights on the property have been reassigned. Otherwise, the claim settlement will not be done in favour of the original property owner in case of any damage to the property.

The following are the factors that affect home loan eligibility.

Credit Score: The Credit Score is collective information about your past loans and repayment records. If the repayments have been done on time, then the credit score will be good. If there are any miss outs your credit score will come down. If the loan eligibility has to be high, you should maintain a minimum credit score of 650 and above.

Income: The bank considers the net take-home after all the statutory deductions and the EMIs for other loans to arrive at the disposable income available to service the proposed loan. The higher the residual income, the higher will be the home loan eligibility.

Age: Age is one of the crucial factors that determine loan eligibility. If you are younger, you get a higher repayment tenure and can avail of a higher loan at a lower EMI. The maximum age on the maturity of the loan as per Kotak Mahindra Bank norms is 60 years for the salaried individuals and 65 years for the self-employed. The loan tenure cannot exceed the upper age limit stipulated.

FOIR: FOIR or fixed obligations to income ratio is very important to assess the loan eligibility. The statutory deductions, EMIs towards other loans, the amount required for living expenses are all considered to arrive at the overall commitments that have to be met with the monthly income. If the FOIR is good, then the loan eligibility will be good. As per Kotak Mahindra Bank norms, the FOIR cannot exceed 65% of the monthly income.

Property value: The maximum home loan provided by Kotak Mahindra Bank is between 75% to 90% of the market value of the property depending on the quantum of the loan required. The higher the value of the property, the higher will be the loan eligibility.