Features of Kotak Mahindra Bank Loan Against Property

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

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.

Benefits of Availing Kotak Mahindra Bank Loan Against Property

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

Eligibility for Kotak Mahindra Bank Loan Against Property

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.

Kotak Mahindra Bank Loan Against Property Interest Rates

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:

Loan Amount SlabIf Women Borrower is Main ApplicantFor Others
Less than 2 Crores8.90% - 9.50%9.6% - 11.65%
More than 2 Crores9.55% - 11.60%9.65% - 11.70%

Why Use Loan Against Property EMI Calculator?

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.

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.

Kotak Mahindra Bank Loan Against Property - Processing Fees & Other Charges

The charges applicable on the loan are as mentioned below:

Type of chargeDescription
Processing feeCharged at 3% of the loan amount plus applicable GST, which is not refundable.
Documentation charges
  • For loan amount up to 2 Crores: 5,000 + GST and other statutory levies
  • For loan amount above 2 Crores: 10,000 + GST and other statutory levies
Charges for issuing copies of documentsRs. 500 plus GST per instance
Change in repayment modeRs. 500 plus GST per instance
Cheque/ECS dishonour chargesRs. 750 plus GST per instance
Charges for issuing duplicate NOCRs. 500 plus GST per occasion
Pre-payment charges
  • No pre-payment charges will be collected if the pre-payment is made after 6 months from the commencement of the EMI. For a pre-payment up to a minimum of Rs. 25,000 and a maximum of 25% of the outstanding loan amount made after the lock-in period, there will be no charges. The time gap permitted between two pre-payments is 6 months.
  • For any part-payment made in excess of 25% of the outstanding loan balance, 4% on the excess pre-payment made plus the applicable GST will be charged.
  • 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 along with the applicable GST.
  • No pre-payment/pre-closure charges will be collected for a loan granted to individuals at a floating rate.
Charges for delayed payment3% p.m. plus applicable GST on the overdue amount for the overdue period.
Default collection charges30% plus GST of the dishonoured cheque amount plus penal interest at 3% on the overdue amount for the overdue period.
Issue of amortization scheduleFree for the first time during the financial year. 250 plus GST thereafter.
Annual review charges for an overdraft facility1.5% of the renewed limit or 5,000 plus the applicable GST
Limit termination chargesIf terminated within the lock-in period of 6 months, charges will be collected at 6% of the limit sanctioned plus GST and if terminated after 6 months, charges will be collected at 5% of the sanctioned limit plus GST.
For not maintaining the minimum credit turnoverA maximum of 1% of the sanctioned limit per year.
Charges for using the limit over and above the sanctioned limitPenal interest at 3% over and above the regular interest charged for the OD Account for the overdrawn amount till regularisation.
Commitment charges0.25% will be charged on the difference between the actual average utilisation and 25% of the average operating limit sanctioned during the quarter with a minimum of Rs. 1,250 plus GST.
Charges for issuing interest certificateIssued free for the first time during the financial year and with a fee of Rs. 250 plus GST thereafter.
Stamp dutyAs per actuals in the particular State.

Documents Required for Kotak Mahindra Bank Loan Against Property

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

Type of documentSalariedSelf-Employed
Address ProofVoter's ID Card, Aadhar Card, Passport, Driving Licence, Utility bills
Photo ID ProofPAN Card, Passport, Voter's ID Card, Passport
Income Proof
  • Salary slips for the last 6 months
  • Form 16 and ITfor the last 2 years
  • Bank account statement for the last 12 months of the salary account
  • Audited Balance Sheet and Profit and Loss Account for the last 3 years.
  • ITR with income computation for the last 3 years.
  • Bank Account statement of all operative accounts for the last 12 months.
  • Sanction letter and account statement for the last 12 months of all the loan accounts.
Business ProofN.A.
  • Business profile on the lette head of the business entity.
  • MOA and AOA for Companies.
  • Partnership deed for Partnership Company.
  • The license under Shop Act for Proprietorship Company.
  • GST Registration Certificate and GST Returns for the last 1 year.
Property DocumentsChain of title deeds relating to the property along with the sanctioned plan.

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Preapproved ICICI loan against property @8.35% p.a 

ICICI bank loan against property up to 5 crore can be availed of online as well as offline by salaried and self-employed applicants. The LAP can be for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers. 

Kotak Mahindra Bank Loan Against Property - FAQs

How to apply for the Kotak Mahindra Bank Loan Against Property?

You can apply for the Kotak Mahindra Bank Loan Against Property online through the official website of the bank. You can visit the nearest branch of the bank and apply for the loan by submitting the required application along with the necessary documents. You can also apply online through MyMoneyMantra, for quick and seamless loan application process.

Can the Kotak Mahindra Bank Loan Against Property be availed jointly?

If the property is in the joint names, all the joint owners should be co-borrowers for the loan. If the property is in individual name, the loan can be availed in joint names along with close relatives of the borrower to supplement the income for higher eligibility. The co-borrowers need not be joint owners of the property.

What are the processing charges and pre-payment/pre-closure charges for the Kotak Mahindra Bank Loan Against Property?

  • Processing charges will be collected at 3% of the loan amount or the sanctioned limit according to the facility availed along with the applicable GST.
  • Prepayment 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 along with applicable GST.
  • 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 along with the applicable GST.

What is the maximum repayment period provided for the Kotak Mahindra Bank Loan Against Property?

The maximum repayment period provided for the Kotak Mahindra Bank Loan Against Property is 15 years.

What is the quantum of loan provided for the Kotak Mahindra Bank Loan Against Property?

The minimum quantum of loan provided is Rs. 10 Lakhs and the maximum quantum of loan provided is Rs. 5 Crores.