Kotak Mahindra Personal Loan Interest Rates
Interest Rate

Starting @ 10.85%

Check Best Offers
Processing Fee

Upto 0.25%

Loan Tenure

1-5 years

Lowest EMI Per Lakh

₹ 2,167 for 5 years

Prepayment Charges

Nil charges for floating rates loans

check your eligibility

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Kotak Mahindra Personal Loan Interest Rates

Founded by the dynamic Mr. Uday Kotak, Kotak Mahindra Bank has grown from strength to strength and is now India?s fourth largest private sector bank by market capitalisation. Products of Kotak Mahindra Bank are especially popular amongst retail clients due to the use of technology, minimal paperwork, and transparent charges. One such product of Kotak Mahindra Bank that has been very popular is the Personal Loan.

The Personal Loan is an unsecured loan provided to individuals and families in case of quick cash needs. Personal Loan plays an important role in the life of an individual by providing lump sum cash during situations like medical emergencies, sudden loss of income, wedding expenditure, higher education, house reconstruction, expensive consumer durable purchases, and so on.

Personal Loans are provided without collateral or without any personal guarantees. As a result, Personal Loans are provided only to creditworthy individuals with a good credit rating. Personal Loans are expensive products carrying a higher interest rate compared to secured loans because of the absence of any security or collateral in case of default. 

Kotak Mahindra Bank provides Personal Loans at attractive interest rates starting 11.50% per annum for salaried individuals working for the government or reputed organisations. These interest rates are based on the current market situation. The interest rates are subject to change depending on the repo and reverse repo rates announced by the Reserve Bank of India.

Kotak Mahindra Bank Personal Loan Highlights

Some important features offered by the Kotak Mahindra Bank Personal Loan are as below:

Particulars Salaried

Interest Rate

12.25% - 18.99%

Loan Amount

1 Lakh - 15 Lakhs

Loan Tenure

12 to 60 months

Processing Fee

Up to 2.5% plus GST and other applicable taxes

Pre-closure Charges

Allowed after 12 months at charges of 5% of principal outstanding and other applicable levies, Max 7500

Part Prepayment Charges

Not Allowed

Kotak Mahindra Bank Personal Loan Interest Rate and Other Details

  • Instant Personal Loans available for eligible borrowers
  • Loan amount varying from a minimum of 50,000 to a maximum of 15 Lakhs.

  • Attractive Personal Loan Interest Rates
  • Flexibility in end use of the Personal Loan amount
  • Convenient online Personal Loan application allowed
  • Loan tenure ranging from 1 to 5 years
  • No personal guarantor or collateral required to avail the loan
  • Online loan eligibility check can be done directly from Kotak Mahindra Bank website.

Purpose of Availing the Loan: Kotak Mahindra Bank is very flexible regarding the end use of a Personal Loan. You can take a Kotak Bank Personal Loan for activities like travel, education, medical emergencies, and other personal finance requirements. However, Kotak Mahindra Bank does not allow speculative use of Personal Loans like trading, gambling, and so on.

Key Features of Kotak Mahindra Bank Personal Loan

  • Loans available to fund various personal financial needs

  • Applicants in the age group of 21 to 58 years are eligible for applying for the loan

  • Loan amount starts at a minimum of 1 Lakh to a maximum of 15 Lakhs

  • Loan duration of 12 to 60 months
  • Attractive interest rates between 12.25% to 18.99% per annum

  • Lowest EMI of 2,199 per Lakh

Processing Fees: Kotak Mahindra Bank charges loan processing fees of up to 2.5% of the loan amount plus other applicable levies by the bank.

Pre-closure Charges: Pre-closure of Kotak Mahindra Bank Personal Loan is allowed at 5% charges plus other applicable levies.

Other Charges: The bank also levies other charges for a Personal Loan, such as late EMI payment charges, EMI bounce charges, loan cancellation charges, and so on.

Special Loan Schemes: Kotak Mahindra Bank offers customised Personal Loan at attractive interest rates for a special category of borrowers like employees of state or central government, employees of reputed companies, long-term salary account holder, women borrowers, and so on.

Kotak Mahindra Bank Personal Loan Top Up Scheme

Kotak Mahindra Bank offers top-up facilities on existing loans for creditworthy borrowers. Top-ups refer to the additional loan amount to your existing Personal Loan. However, you are eligible to get a top-up Personal Loan only if you have a proven track record of regular repayment of EMI for your existing loan. Kotak Mahindra Bank offers top-up loans at similar interest rates as your existing loans. Currently, the minimum interest rate for top-up loans from Kotak Mahindra Bank is 10.99%

Factors Affecting Kotak Mahindra Bank Personal Loan Interest Rate

The interest rate on any Personal Loan depends on some parameters like loan tenure, loan amount, and the repayment capacity of the individual measured in terms of salary, monthly expenses, Credit Card bills, existing obligations, and so on. Kotak Mahindra Bank uses the following factors to determine the Personal Loan interest rate:

  • Loan Amount:The amount that is borrowed as the Personal Loan is called loan amount. Generally, the higher the loan amount, lower is the interest rate. At Kotak Mahindra Bank, Personal Loan amounts vary between 1 Lakh and 15 Lakhs.

  • Salary: Your repayment capacity is decided by your income. Higher your salary, the higher the amount of loan you are eligible for and lower is the interest rate.

  • Employer Category: Based on years of experience and internal analysis, Kotak Mahindra Bank has created an internal list of companies falling into categories ranked from high to low depending on the company?s size, its reputation, and relationship with Kotak Mahindra Bank. Loan applicants working with high category employers are looked at more favorably when compared to those belonging to lower category employers. Employees who belong to companies in higher company categories get attractive low-interest rate loans.

    Read more:  Employer Rating Impacts Your Personal Loan Eligibility
  • Relationship with the Bank: Kotak Mahindra Bank generally likes repeat business with clients. Long-term existing account holders of the bank get favorable offers and attractive interest rates. If you have taken a Kotak Mahindra Bank Personal Loan previously and if you have made all the payments on time, you can get lower interest rates on the Personal Loan.

  • Loan Tenure: Kotak Mahindra Bank provides loan with tenures between 12 months and 60 months to meet immediate cash requirements of loan applicants.

  • Repayment Capacity: Kotak Mahindra Bank thoroughly evaluates the repayment capacity of the Personal Loan applicant. The bank accesses and analyses CIBIL report of loan applicants and gets information of all previous loan and Credit Card repayments of loan applicants. Based on the previous track record of previous loans taken, the Bank decides the repayment capacity of the loan applicant and then is able to decide the loan amount and the interest rate for a loan applicant.

It should be noted that for defence personnel and government employees, Kotak Mahindra Bank offers favorable interest rates when compared to private salaried employees.

Tips to Get the Best Personal Loan Interest Rates from Kotak Mahindra

MyMoneyMantra allows you to compare interest rates offered on Personal Loans by various banks and non-banking financial companies (NBFCs) online and choose the best Personal Loan offer. The entire application process for a Personal Loan can be done online. Based on your credit history, MyMoneyMantra allows you to check your eligibility for a Personal Loan online without even submitting your documents.

That is not all, MyMoneyMantra allows you to get instant loan approval and disbursement of the loan amount in case you are an existing account holder of the lending bank. You can also apply online. Our representatives will pick up your documents from your doorstep to submit them to the concerned bank. Our loan experts will assist you throughout the entire loan process.

Make sure that you take care of the following points so as to get the best possible interest rates:

  • Compare the rates of a Personal Loan with respect to the loan amount: Higher loan amount leads to low-interest rates. Hence, compare interest rates with respect to the loan amount.

  • Check for the best discount as well as running offers: Most banks including Kotak Mahindra Bank offer several favourable terms and attractive interest rates for employees of the government, army, or reputed private companies. Please check with the bank for any running schemes.

  • Check for discounts related to loan tenure: Sometimes, the interest rates are much lower for a slightly higher tenure loan. Make sure that you compare the interest rates offered by banks on various tenures and choose the tenure with the lowest interest rate.

  • Avoid taking multiple Personal Loans: Applying for a Personal Loan from multiple banks simultaneously negatively affects your CIBIL score and can lower your chance of getting a loan.

  • Avoid applying for loan amount more than your eligibility: Please check your loan eligibility and credit score before applying for a Personal Loan. Applying for a higher loan amount that you are eligible can lead to loan rejection.

  • Do not rush into taking the loan from your salary bank: There are various banks and NBFCs that offer attractive offers and lower interest rates on Personal Loans. Please check with different banks and NBFCs before finalising a loan. One should not rush into taking a Personal Loan from the bank where they have an existing account. Check out whether your bank has attractive offers for existing account holders. This can help you even negotiate terms of a loan. Choose the best possible option wisely.

How to Apply for Kotak Mahindra Bank Personal Loan

Kotak Mahindra Bank allows you to apply for a Personal Loan online through the MyMoneyMantra website. MyMoneyMantra is a channel partner for Kotak Mahindra Bank. The website is easy, intuitive, and convenient to use. You can calculate EMI, get eligibility criteria, terms and conditions, and apply for a Kotak Mahindra Bank loan relatively faster on MyMoneyMantra website.

You can compare Personal Loan interest rates offered for a similar amount and tenure from other banks on the MyMoneyMantra website. After you apply for a Personal Loan on MyMoneyMantra, a representative will contact you instantly to take the loan process forward. MyMoneyMantra provides you a Personal Loan advisor who ensures that the lending process is quick and you get good quality customer service from Kotak Mahindra Bank.

Documents Required for Kotak Mahindra Personal Loan

For salaried employees

  • Completely filled up loan application form with signature of the applicant

  • 2-3 recent passport size photographs
  • Identity Proof - Driving License/ PAN/ Passport/ Voter's ID/ Aadhaar Card

  • Residence Proof - Passport/ Leave and License/ Utility Bill

  • Income Documents - Last 3 months' bank statement of the account where the salary is credited with income details and last 3 months' salary slip

Kotak Mahindra Bank Personal Loan Charges

In addition to the interest rate, you need to check following other Personal Loan related charges levied by Kotak Mahindra before taking a decision to borrow from the bank:

  • Interest Rates: 50% - 24% per annum

  • Foreclosure Charges: In case you want to repay the entire loan amount, you can do so only if you have repaid a minimum of 12 EMIs. Kotak Mahindra Bank charges 5% as pre-closure charges plus other applicable levies.

  • Processing Fee: Kotak Mahindra Bank charges a non-refundable processing fee of up to 2.5% of loan amount with applicable taxes.

Other Charges: There are multiple charges in case of default or similar events. Some of these events include late payment of EMI, cheque bounce, loan cancellation after sanction, and so on. Once your loan is sanctioned, Kotak Mahindra Bank provides you a statement of all other charges with applicable tax for your Personal Loan account.

Benefits of Kotak Mahindra Personal Loan

  • Instant funding: Data analytics and other online tools have enabled the banks to process online Personal Loan applications. Kotak Mahindra Bank has been at the forefront of using technology to process online loan applications. It has the necessary tools to get a response in a very short span of time and ensure that the entire process is user-friendly. In case you have a salary account with Kotak Mahindra Bank, your loan application can be processed instantly and funds can immediately be transferred in your bank account to meet your financial requirements.

  • Personal Loans are unsecured: Personal Loans do not require any security or collateral, security, or guarantor. These are unsecured loans that are sanctioned once the loan agreement is signed either through digital acceptance or by sending signed documents.

Minimal documentation required: Online Personal Loan application by Kotak Mahindra Bank is hassle-free and there is minimal paperwork and documentation involved. The bank has been able to carry out most of the functions digitally. All you have to do is to follow the instructions on the bank website step-wise and get the loan sanctioned online.

FAQs on Kotak Mahindra Personal Loan

How much time will the Kotak Mahindra Bank take to take a decision on my Personal Loan?

Answer - Kotak Mahindra Bank conveys a decision on a loan application within 15 days of submitting a loan application. However, loans applied online, loans of existing Kotak bank account holders, instant loan applications can be processed as early as 2-3 hours.

Why take a Personal Loan from Kotak Bank?

Answer - Attractive interest rate starting at 11.50% per annum, easy documentation, lowest EMIs starting 2199 per Lakh, facility to transfer the balance of the existing loan to the bank are some reasons to opt for Kotak Mahindra Bank Personal Loan.

What is the interest rate charged by Kotak Bank on a Personal Loan?

Answer - Depending on the loan amount, salary, repayment capacity, loan tenure, Personal Loan interest rates in Kotak Bank are between 11.50% and 24%. It must be noted that Kotak Bank offers special rates and offers for salary account holders and a special category of borrowers.

What is the lowest EMI per Lakh on a Personal Loan from Kotak Bank?

Answer - Kotak Mahindra Bank offers Personal Loans with the lowest EMI per Lakh as low as 2,199.

What is the tenure of Personal Loan in Kotak Bank?

Answer - Kotak Mahindra Bank offers a Personal Loan with a minimum tenure of 12 months to a maximum tenure of 60 months.

What is the Personal Loan amount that I can borrow from Kotak Bank?

Answer - Kotak Bank Personal Loan amounts vary from a minimum amount of 1 Lakh to a maximum amount of 15 Lakhs, depending on the eligibility of a borrower.

What is the processing fee charged by Kotak Bank on a Personal Loan?

Answer - Kotak Bank charges a processing fee of up to 2.5% of the loan amount + applicable taxes.

What should be my age to apply for a Personal Loan from Kotak Bank?

Answer - Age is an important eligibility factor to get a Personal Loan. You should be at least 21 years old at loan application time and maximum 58 years old at loan maturity time to get a Personal Loan from Kotak Mahindra Bank.

Are there any prepayment charges on a Personal Loan from Kotak Mahindra Bank?

Answer - Kotak Mahindra bank allows you to completely foreclose your Personal Loan at prepayment charges of 5% of the remaining amount plus applicable taxes, provided you have paid a minimum of 12 EMIs.

Is it recommended that I add my spouse's income while applying for a Personal Loan from Kotak Mahindra Bank?

Answer - Adding your spouse's income while applying for a Personal Loan will combine your income with the income of your spouse. This will increase your loan eligibility and you can get a higher loan amount sanctioned.

Kotak Mahindra Personal Loan News

5 Dec 2018:Kotak Bank ties up with Qbera to provide quick and hassle-free Personal Loans

Kotak Bank announces its tie-up with startup Qbera along with some other banks namely, IndusInd Bank and RBL Bank. With this tie-up, the bank aims to provide Personal Loans to the customers in a quick and hassle-free manner.

24 Sep 2018:Kotak Bank shoot up Base Rate by 10bps

Kotak Bank has increased its base rate by 10 basis points. The revised base rate is 9.20% and is effective from September 14, 2018.

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