Kotak Bank Home Loan Interest Rates

Amongst the lowest interest rates in the market, Kotak Mahindra Bank home loan interest rates start at 6.50% p.a. With affordable Kotak Mahindra Bank home loan interest rates, you get the option to balance transfer your ongoing home loan to lower your interest liability. Varied schemes for different purposes, low processing charges and flexible repayment options, add to customer convenience.

Kotak Mahindra Bank Home Loan Interest Rate

Owning a home is a step ahead in the journey of your life. The investment being humongous, home loans have come as a respite for most of them who will not be able to fund the investment with their savings. Since the financial commitment will be a long-term one, it is essential to shop around to avail of the home loan with the lowest interest rate. Even a small percentage of difference in the interest rate will considerably reduce the cost of the loan.

Kotak Mahindra Bank Home Loan Interest Rate 2021 is among the lowest that is available in the market. The interest rate on the Kotak Home Loans is as given below.

Loan AmountSalariedNon-Salaried
Any  Loan Amount6.65% to 7.10%6.75% to 7.20%

The fixation of rate of interest depends on the cibil score, employment and the down payment provided.

Comparison of Kotak Mahindra Bank Home Loan Interest Rate with Top Banks

Given below is the comparative home loan interest rates of Top Banks vis-a-vis Kotak Mahindra Bank Home Loan Interest Rate 2021.

Name of the BankHome Loan Interest Rates
Kotak Mahindra Bank6.65% to 7.20%
State Bank of India6.80% to 9.05%

Central Bank of India


 

6.85% to 7.20%
Punjab and Sind Bank6.85% to 7.35%
Bank of Baroda6.75% to 8.25%
Canara Bank

6.95% to 8.90%


 

Bank of India6.85% to 7.25%
Union Bank of India6.80% to  8.40%
ICICI Bank6.75% onwards
Deutsche bank6.60% onwards

With the list, you can observe that the prevailing Kotak Bank home loan interest rate is among the lowest. Simple eligibility norms and documentation will make your home loan journey seamless and hassle-free if availed at Kotak Mahindra Bank.

Factors affecting Kotak Home Loan Interest Rate

The main concern while availing of a home loan is the rate of interest. The major component that impacts the cost of the loan is the rate of interest. Even a small reduction in the rate of interest will make a considerable difference in the loan run as the loan amount involved is huge, and the financial commitment is long term.

Kotak Home Loan Interest Rate depends on various factors. If you intend to avail of the Kotak Home Loan at the best rate, you will have to pay attention to the following factors that impact the Kotak Bank home loan interest rate.

Credit Score: Credit Score is the key factor that impacts the rate of interest largely. The financial institutions assess the reliability in paying off the loan with the credit score. The credit report will give an idea about the responsibility of the customer towards servicing the loan EMIs and credit card dues. Applicants with a higher credit score can procure the home loan at a lower rate of interest than the applicants with a low credit score. It is very important to review your credit score before applying for Kotak Home Loan. Any errors in the credit report can lower the credit scores. You should scrutinise the credit report for any errors and get it resolved by contacting the support group of the credit bureau. 

Property Location: The value of the property and the liquidity comfort is based on the location of the property you are going to invest in. You should look as far as possible for a property in a prime location with basic amenities and good connectivity in terms of public transport. You will get a Kotak Mahindra home loan interest rate for the home loan for properties in a prime location as the risk factor is minimised owing to the good market value as well as easy liquidation of the property in the event of non-repayment of the loan.

LTV Ratio: Normally, the home loan amount will depend on the value of the property. Kotak Mahindra Bank offers a loan amount up to 75% to 80% of the market value of the property. The rate of interest also depends on the loan amount availed, i.e., the down payment made. If you make a higher down payment, the loan amount will reduce, which means a reduced lending risk for the financial institutions. Hence if the LTV ratio is higher, i.e., if the stake of the borrower is higher, then the Kotak Mahindra home loan interest rate will be lower.

Kotak Bank Home Loan Fees and Charges

Type of ChargeAmount
Processing charges0.5% of the loan amount plus applicable GST. Rs. 5000/- has to be paid upfront as a log in fee, which is not refundable and will be adjusted with the overall processing fees at the time of disbursement.
Copies of documentsRs. 500/- per request plus applicable GST
Swap of repayment modeRs. 500/- instance plus applicable GST
Part pre-payment charges

No part pre-payment charges for loans availed by individuals.


 

No part payment is allowed till six months from the date of EMI commencement. Post the lock-in period, part pre-payment of a minimum of Rs. 25000/- and a maximum of 25% of the outstanding principal balance once in 6 months in a financial year will be permitted without any charges. For anything over and above 25%, a part pre-payment charge of 3% of the prepaid amount in excess of 25% will be collected.


 

Foreclosure charges

No foreclosure will be allowed within 6 months from the date of EMI commencement


 

No foreclosure charges for loans availed by individual borrowers.


 

For non-individual borrowers, foreclosure charges of  3% of the outstanding liability plus the prepaid amount during the last 12 months will be collected.


 

EMI bounce chargesRs. 500/- plus applicable GST per instance
Late payment penalty2% per month of the outstanding EMI amount  plus applicable GST
Cheque collection charges in case of default30% plus applicable taxes of the EMI dishonour charges plus penal charges. For instance, if the EMI amount is Rs. 50000/-, the cheque dishonour charges will be Rs. 500/- and the penal charges will be Rs. 1000/-. So the collection charges will be 30% of Rs. 1500/- i.e., Rs. 450/-
Loan cancellation charges0.1% of the loan amount with a minimum of Rs. 25000/- plus applicable charges

Kotak Mahindra  Home Loan Balance Transfer Interest Rate

If a consumer has availed a home loan at an interest rate higher than the Kotak Mahindra home loan interest rate, he or she has the option of transferring the existing home loan liability to Kotak Mahindra Bank and can also have the advantage of a top-up loan if eligible. The taking over of the existing liability will be approved only if the eligibility norms specified for the balance transfer are met. The rate of interest stipulated for Kotak Mahindra Home Loan Balance Transfer will be 6.60% p.a.onwards for salaried individuals and 6.65% p.a.onwards for the self-employed, which is lower than the interest charged for the regular home loan.

Kotak EMI Calculator

Each and every one of us faces confusion in respect of the monthly EMI and the basis on which it is calculated. EMI calculator is a simple tool that provides an easy solution to this confusion. With the EMI calculator, you can arrive at the EMI for a given loan amount for a chosen tenure in a matter of seconds.

You can calculate the EMI for Kotak Home Loan using the Kotak EMI Calculator or the Kotak Bank home loan interest rate calculator.

You can access the Kotak EMI Calculator on the website of the bank. Go to the website and select home loans under the loans option. On choosing the EMI calculator on the home loan page, a window with three variants, i.e., loan amount, interest, and period will open.

Enter the desired loan amount, the rate of interest and tenure. The EMI, interest payable, and the total amount payable for the chosen tenure will be displayed. You can try various combinations until you arrive at the EMI that you can manage.

By doing the exercise, you can make an informed decision about the loan amount, and you will also get an idea about the affordable investment you can make on a property. This will help you to choose a property within your budget range.

How to apply for Kotak Home Loan?

After finding the Kotak Mahindra home loan interest rate and calculating the affordable EMI, the next step would be applying for the loan. You can apply for Kotak Home Loan both offline as well as online. To apply online, you will have to access the official website of Kotak Mahindra Bank and follow some simple steps.

  • Under Explore Products, choose home loan under Loans option.
  • A home loan page will open. Click on the ‘Apply Now Button
  • A page with options ‘Existing Customer’ and ‘New Customer’ will open.
  • Existing customers should log in with a CRN number and mobile number.
  • Customers who do not have an existing relationship with the bank should click on the ‘New Customer’ option.
  • A home loan application will be displayed.
  • Provide the details of applicant type, income type, residential status, gender, first name, last name, email id, mobile number and additional mobile number.
  • Agree to the terms and conditions and authorise the representative of the bank to contact you regarding the home loan and then click on the continue button.

You will be led through the home loan application process by the representative of the bank, who will contact you subsequently.

You can also contact the nearest Kotak Mahindra Bank branch and apply for the loan by submitting the relevant home loan application form along with the required documents.

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FAQs

✅ What is the maximum home loan that I can avail of from Kotak Mahindra Bank?

The home loan quantum depends on the market value of the property and your repayment capacity. Ideally, you will be eligible for a maximum of 75% to 80% of the property value.


 

✅ What is the Kotak Mahindra Bank Home Loan interest rate?

The rate of interest depends on the CIBIL score and LTV Ratio. The rate of interest for salaried individuals ranges from 6.65% to 7.10%, and for the self-employed, it will be 6.75% to 7.20% p.a.

The home loan balance transfer rate of interest for the salaried individuals will be 6.60% p.a.onwards, and for the self-employed, it will be 6.65% onwards.

✅ Why use Kotak EMI Calculator?

Assessing your loan eligibility is very crucial before applying for a home loan. This will reduce the appraisal hassles and will expedite the home loan approval process. The advantages of using Kotak EMI Calculator are:

  • Kotak EMI calculator is easy to access and is user-friendly.
  • It spares you from the cumbersome manual calculation of EMI and gives accurate results in a jiffy.
  • You can use the EMI calculator multiple times by varying the loan amount and tenure until you arrive at an EMI that fits your budget.
  • By fitting the EMI within your budget, you will be making the repayments promptly, and you will be able to retain a satisfactory credit score.

✅ What are the fees and charges for Kotak Mahindra Home Loan?

The fees and charges for Kotak Mahindra Home Loan are as given below:

  • Processing charges: At 0.5% of the loan amount plus applicable taxes. Rs. 5000/- will be collected upfront and the remaining after disbursement. The upfront fee is not refundable.
  • Part pre-payment charges No part pre-payment is allowed within six months from the date of EMI commencement. For loans availed by individuals, there will be no part pre-payment charges. For loans availed of by non-individuals, a minimum part pre-payment of Rs.25000/- and a maximum of 25% of the outstanding principal amount will be permitted without any charges every six months. For any part pre-payment over and above 25%, pre-payment charges at 3% of the amount over and above 25% will be collected. Applicable taxes will be collected along with the charges.
  • Foreclosure charges: No foreclosure charges for loans availed of by individual borrowers. For loans availed by non-individuals, 3% of the outstanding loan amount along with the prepaid amount for the past 12 months will be collected along with applicable taxes.
  • Late payment fee: 2% per month of the EMI outstanding along with applicable taxes
  • EMI bounce charges: Rs. 500/- plus applicable taxes per instance.
  • Cheque collection charges: 30% of EMI bounce charges plus penalty along with applicable taxes
  • Loan cancellation charges: 0.1% of the loan amount or Rs. 25000/- whichever is higher plus applicable taxes.

✅ How can I get a Kotak Mahindra Bank Home Loan?

You can get a Kotak Mahindra Bank Home Loan by applying for a home loan either offline or online.

To apply offline for the home loan, you will have to visit the nearest Kotak Mahindra bank branch and submit the home application along with the required documents.

To apply for the loan online, you will have to fill up an online home loan application by accessing the official website of the bank. Once you submit the application online by agreeing to the terms and conditions and authorising the representative of the bank to contact you, you will be assisted by the representative of the bank to complete the home loan application process.