Kotak Overdraft Facility
Kotak Mahindra Bank offers an Overdraft Facility up to ₹50 Lakhs for salaried individuals under the name of Easy Credit Line, which allows customers to withdraw funds as per their requirement and pay interest only on the amount used for the utilisation period. This option is useful for meeting urgent needs or managing unexpected expenses. The Kotak OD interest rate starts from 13.50% p.a., and the tenure is up to 72 months.
Kotak Mahindra Bank Overdraft Facility Details
Below are the key details of the Kotak Overdraft facility:
| Loan Amount | ₹1 Lakh - ₹50 Lakhs |
|---|---|
| Tenure | Up to 72 months |
| Rate of Interest | 13.50% p.a. onwards |
| CIBIL Score | 730 or above |
| Age | 21 to 58 years |
Features & Benefits of Kotak Overdraft Facility
Here are the features and benefits of the Kotak overdraft facility:
- Loan amount: Varies between ₹1,00,000 and ₹50,00,000. Higher limits may be approved based on the customer’s credit evaluation.
- Flexible tenure: Up to 72 months.
- Pay as per use: Pay interest only on the utilised amount instead of paying interest on the entire sanctioned limit.
- Documentation: The documents required for Easy Credit Line are simple and easy to provide.
- Multiple withdrawals through online transactions: Access funds online to meet all your personal expenses, as many times as needed.
- Transfer funds across accounts: You can transfer funds seamlessly across both Kotak and non-Kotak accounts.
- Pay all bills: You can use the funds to pay utility bills, credit card bills, or to manage various payments seamlessly.
Kotak OD Interest Rates & Charges
Below are the interest rates and other charges associated with the Kotak Mahindra Bank overdraft facility:
- Interest Rate: Starting from 13.50% p.a.
- Processing Fee: Up to 3% of the sanctioned limit.
- Renewal Charges: 1% of the renewal limit or ₹5,000, whichever is higher.
- Overdue Interest: 3% p.m., compounded annually.
- Overline Interest: 18% p.a.
- Non-utilisation Charges: 0.5% of the Average Operating Limit if utilisation is below 10%.
- Swap Charges: ₹500 per swap.
- Charges for SOA (Physical): ₹200 + GST per instance.
Types of Kotak Bank Overdraft Facility
The types of Kotak Bank Overdraft Facility available at present are mentioned below:
- Easy Credit Line or Personal Loan Overdraft
- Kotak Smart Overdraft
- Digi OD (Digital Overdraft)
- Current Account Overdraft
- Overdraft Against Fixed Deposit (FD)
- Home Loan Overdraft
Kotak Overdraft Loan Eligibility Criteria
Here are the eligibility criteria required to apply for the Kotak Bank overdraft facility:
- Age: Individuals must be aged between 21 and 58 years.
- CIBIL score: 730 or above.
- Monthly income: Minimum take-home salary should be ₹50,000 for Kotak salary account holders, ₹75,000 for Non-Kotak salary account holders from non-tier 1 cities, and ₹1 Lakh for Non-Kotak salary account holders from tier 1 cities.
- Employer & risk evaluation: Other than the above-mentioned criteria, the customer’s employer category and overall risk profile are also evaluated by the lender.
Documents Required for Kotak Overdraft Facility
The list of documents required for the Easy Credit Line is mentioned below:
- Identity and address proof
- PAN Card
- Pay Slips for the last 2 months
- Bank Statement of the primary account for the last 3 complete months
Steps to Apply for Kotak OD Online
You can apply for a Kotak Overdraft Loan by following the steps mentioned below:
- Fill in all the required details in Kotak’s online form.
- Select the required loan amount and tenure and get instant approval.
- Kotak’s representative will get in touch with you for document collection.
- The bank will open your Overdraft Account and load the limit.
- Once the limit is loaded, you can use it anytime.
- You can withdraw the available funds whenever you need and transfer them to your bank account within 2 hours.
FAQs
The interest rate of OD in Kotak Bank starts from 13.50% p.a. onwards.
Yes, Kotak Bank offers an overdraft facility to Kotak salary account holders as well as non-Kotak salary account holders.
The maximum overdraft limit offered by Kotak is up to ₹50 Lakhs.
Yes, you can increase your Kotak Bank overdraft limit by submitting a request to the bank for a credit evaluation.
To close your Kotak Bank overdraft facility, you will have to clear any outstanding negative balance or utilised amount, and then submit a closure request through customer support or a local branch.
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
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