In a home loan transfer, you can foreclose your existing loan by taking on a new one. Home loans are generally transferred when another lender is offering a lower rate of interest. Kotak Mahindra Bank is currently offering home loans at an interest rate of 8.90%.
|Home Loan Interest Rate||8.90%|
|Processing Fees||Up to 2% of loan plus applicable GST|
|Pre-Payment & Foreclosure Charges||6% of loan amount if the foreclosure happens within 12 months of the date of registration, else 5%, plus GST as applicable.|
|For the full list of loan-related charges, visit Kotak Mahindra’s website.|
Kotak Mahindra Bank will give you a home loan if you meet the bank’s loan eligibility criteria, which comprises of:
The following documents will be required when you apply for a home loan transfer to Kotak Mahindra Bank.
Here are the main features of the Kotak Mahindra Bank home loan transfer scheme.
1. How much amount can I borrow?
You may apply for up to 90 percent of the property cost or in this case up to 80 percent of the original loan for amount between Rs. 20 lakh and Rs. 75 lakh.
2. How does the bank determine my eligibility for loan transfer?
Your ability to repay tops the list. It will be assessed by the bank on the basis of the documents you submit. You can add your spouse’s income to increase eligibility.
3. Is there any restriction on choosing a co-applicant?
If you are a single borrower, you can choose your spouse, parent(s) or even children (aged above 21) as your joint applicant. The co-owner of the house should be a joint applicant but not vice versa.
4. When will the transfer loan be paid to me?
You shall take the disbursement once the credit, legal and technical formalities of your house is done. All the paperwork submitted too would be verified by the bank. Depositing the original property deeds and showing receipts of your own contribution are the remaining steps.
5. Should I insure the house?
Your home is your sweat and blood. Let it not be unprotected against natural or manmade disasters. Hence it is strongly recommended that you do insure it even if it is not compulsory. Kotak Bank offer insurance at reasonable cost.
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