Kotak Mahindra Bank Loan Against Property

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About Kotak Mahindra

Kotak Mahindra Bank is India's one the leading private sector bank. The bank offers an extensive range of financial products and services. The bank has a chain of a business subsidiary that includes Kotak Securities Ltd., Kotak Mahindra General Insurance Company Ltd., Kotak Mahindra Capital Company, Kotak Mahindra Prime Ltd, Kotak International Business, etc. 

About Kotak Mahindra Loan Against Property

Sometimes we have to encounter the circumstances where we require immediate cash and in large quantity. The need for immediate and easy cash can be fulfilled with Kotak Mahindra's Loan Against Property (LAP). You can avail a loan by pledging your property as a mortgage with the bank. Loan Against Property from Kotak Mahindra Bank can be taken against residential, commercial and industrial property. The bank offers LAP in quick turnaround time with lesser documentation and at competitive rates.

Kotak Mahindra Loan Against Property Features and Benefits

Loan Amount: Kotak Mahindra Bank provides minimum LAP of amount 10 Lakhs that can go up to 20 Crores.
Loan Tenure: Kotak Mahindra Bank offers a flexible loan tenure. The maximum loan tenure for LAP can go up to 12 years.

Repayment Options: The borrower can repay his loan EMI via several repayment options including Standing Instruction (SI), ECS (Electronic Clearance System) and PDC (Post Dated Cheque) 

Loan To Value: The loan to value (LTV) in case of a loan against commercial property may go up to 55% of the property value.

Property Type: The borrower can take a loan against commercial, residential and industrial property. The LTV for each property type varies.

Foreclosure Facility: The borrower can foreclose the loan after the completion of lock-in-period. However, the borrower is required to pay foreclosure charges applied by the bank.

Co-applicant: Spouse, parents and major children of an individual borrower can become the co-applicants for a loan. Typically, the co-owner of the property is mandatory to be a co-applicant. However, the co-applicant is not necessarily being a co-owner of the property.

Kotak Mahindra Loan Against Property Eligibility Criteria

A loan is approved by the bank when the borrower fulfils the eligibility criteria. Eligibility is decided based on certain factors. The eligibility for self-employed professionals and self-employed professionals is discussed below:

Eligibility Factor  Self-Employed Professionals and Non-Professionals  on-Professionals  
  Minimum Income  Annual Income of 1.44 Lakhs (As per P & L Statement)
  Minimum Age  21 years at the time of applying for the loan
  Maximum Age  65 years at the time of a loan maturity
  Cash Profits  Firm should be making profits for the last 2 years
  Minimum Years of Business Stability and Existence  Minimum 3 years 
  Property Documents Complete property documents
  Other Documents  Application form Along with 2 Passport Size Photos signed across

Kotak Mahindra Bank Documentation

After the approval, the borrower has to submit the documents to the bank for further processing of the loan. The following documents are:

Type of documentSelf-employed
  Income Tax Return

 Income Tax Returns for last 2 years duly certified by CA

 Bank statement/ copy of passbook of last 6 months
  Business statements Balance sheet and P&L statement for last 3 years including schedules and Annexures
  Identity proof Passport/ Voter ID/PAN/Driving License
  Job/ Business stability

 Proof of business registration:

  • GST/ VAT/ Service tax or incorporation certificate.
  Photographs Two
  Residential address proof Registered rent agreement/passport/ utility bill (up to 3 months old)/ leave and license
  Property related documents
  •  Title deed including the previous chain of property documents
  •  Proof of any other claim on property

Kotak Mahindra Bank Fees and Charges

The bank charges following charges:

  Processing Fee 1% to 2% of the loan amount
  Foreclosure Charges 4% of the outstanding loan amount after the completion of lock-in-period of 6 months

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