KOTAK MAHINDRA BANK
Loan Against Property

Following are the features of Kotak Mahindra Bank Loan Against Property:

Additional Info: You can also avail Loan Against Property without Income Proof and ITR

Purpose

• The loan can be used for personal as well as business requirements.
• The loan can be availed either as a term loan or as an overdraft facility.

Quantum

The quantum of the loan provided will be between Rs.10 Lakhs to Rs. 5 Crores

Interest Rates

9.5% to 11.60%, depends on the loan amount and borrower's gender.

Repayment

• The tenure provided generally for repayment of term loans is 10 years but can be extended up to 15 years on a case to case basis.
• For the overdraft facility, the repayment is on demand.
• The facility has to be reviewed and renewed every year

Charges

Processing charges: 3% of the loan amount or the sanctioned limit according to the facility availed.

Prepayment/Pre-closure charges:

• No charges if the pre-payment is done within the lock-in period of 6 months from the date of commencement of the EMI.
• If paid after the lock-in period of 6 months, no charges will be collected if a minimum pre-payment of 25,000 or 25% of the outstanding principal balance is done.
• The time-gap allowed between each pre-payment will be 6 months.
• If a pre-payment is made above 25% of the outstanding loan balance, then 4% on the excess pre-paid amount will be collected.
• For full pre-payment after the lock-in period, charges will be collected at 4% of the pre-payment amount plus the pre-payment made during the past 12 months.
• Applicable GST will be collected along with the charges.

Additional Reading: How to get instant loan for low cibil score?

The following are the advantages of availing Kotak Mahindra Bank Loan Against Property:

• The loan can be availed against residential/commercial/industrial property
• The rate of interest is competitive and as per market standards
• The repayment period provided is flexible and as long as 15 years which will enable you to manage your EMI as per your convenience.
• The processing and pre-payment charges collected are nominal
• Quick processing and sanction
• Easy documentation
• Transparency in the charges collected and no hidden charges

Additional Reading: Top credit rating agencies in India

The parameters stipulated by the bank to be eligible for the Loan Against Property are as given below:

Eligibility criteria for self-employed professionals and non-professionals:

• Minimum annual income should be 1.80 Lakhs and above
• Minimum age of the applicant should be 21 years when applying for the loan and maximum 65 years at loan maturity.
• Applicant's business/organization should be operational for at least last 4 years
• Applicant's business/organization should be making consistent profit for at least last 2 years

Eligibility criteria for salaried individuals:

• Minimum monthly income should be 40,000 and above
• Minimum age of the applicant should be 18 years when applying for the loan and maximum 60 years at loan maturity.
• Applicant should be an Indian resident
• Applicant should hold a Graduate degree, if they are employed with a private limited company/ partnership firm. No such criterion is there if they are employed with Public limited company/ MNC/ Government or Public Sector Company.

Additional Reading: What is good cibil score range?

Interest rates for the loan are linked to the bank's current EBLR. Following are the interest rates applicable on Kotak Mahindra Bank Loan Against Property:

Tip: Check cibil score by pan card before applying for a loan

The charges applicable on the loan are as mentioned below:

The following documents have to be submitted along with the relevant loan application for the scheme and two passport photographs:

Additional Reading: What is cibil dispute?

As suggested, understanding the EMI for the desired amount is very essential before applying for a loan. You have two choices for calculating the EMI. If you are game for a lengthy manual calculation, you can calculate the EMI by applying a complicated formula and investing your precious time. The other choice would be by calculating the EMI using the EMI Calculator where you get the result in a jiffy. If you are choosing the first option, you will need to reconsider the idea considering the fact that for applying the comparative data from different loan providers to arrive at the most comfortable EMI with the best deal, you will have to do the calculation a number of times.

Additional Info: You can also Check Loan Against Property EMI Calculator

Using the EMI calculator will not only spare you from the laborious manual calculation but also will give a 100% accurate result. Also, with the EMI value available before applying for the loan you can rework on your monthly budget to accommodate the new commitment. It is the most convenient option since you can do the calculation 24 x 7 at the comfort of your home or workplace.