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  • Kotak Mahindra Bank Home Loan Balance Transfer

    Living in the age of information overload, we are constantly questioning our choices and decisions. This is particularly true for assets of greater value such as a house. You opt for a home loan from a reputed lender after a lot of contemplation and deliberation. Then you find out that there are a lot of hidden charges or the rates have shot up. You research again and find a better option and kick yourselves for not making the right decision before. Well, it is never too late. Most banks offer you the leeway to transfer the home loan to any other bank, of course, with a bit of penalty charges. But it will be worth in the end. Let us take a look at what kind of a home loan transfer option Kotak Bank offers.

    Features & Benefits of Kotak Bank House Loan Transfer:

    • Kotak bank offers a provision wherein you can apply to transfer your existing housing loan to the bank.
    • Instead of making your EMI payment to your previous bank, you will be transferring it to Kotak.
    • If Kotak’s interest rates are lower than what your current lender imposes, the same rule applies to you. Your tenure and EMIs will be adjusted accordingly.
    • You also have the option to top-up the current loan to avail hard cash for any home-related requirements.
    • The process of obtaining the house loan is now simpler than ever. The amount to be paid out too will be altered so that you can shell out the EMIs comfortably.
    • Kotak Bank Home Finance Transfer can be made use of to lower your rate of interest as well as bring down the monthly EMIs.
    • You can opt to increase or decrease your loan term as well.
    • If you wish, you can utilize the equity in your home to get cash for other needs by opting for a top-up.
    • Remember, even a .10 percent drop in the rate can save lakhs (based on the loan amount, balance and remaining tenure).

    Eligibility Criteria:

    • The financial eligibility for you to apply for a home loan transfer to Kotak Bank is dependent on a lot of factors including your repayment history and repayment capacity.
    • Your earnings per month/ annum.
    • Source of income such as employment at a private or government firm, own business or independent profession. It could also be unreported income such as alimony, income from rented/ leased property etc.
    • Work experience is another important factor. Bank verifies your employment history, how long you have been in the field and how many long breaks you have taken. This can help them gauge your earning capacity.
    • Savings and CIBIL Score also play a significant role in convincing the bank that you can be trusted to settle the loan completely in time.
    • It is a well-known fact that younger applicants (in 20s and early 30s) find it easier to get their loan applications approved than older people (in 40s or 50s). Unless you can show substantial income proof to counter the age factor, banks are normally hesitant in lending huge amount as home loan.
    • Your educational qualifications matter as well as it can ensure job security. This also help them to assess the possibility of you carrying forward with the same job.
    • The number of dependent relatives is something most banks take a look at. This is to help them understand the monthly expenses and how much EMI can be deemed comfortable.
    • Loans can be applied by person(s), either singly or jointly or with a guarantor. Possessors of the said property, for which the home loan is being sought, are expected to be joint applicants. But they are not required to be the co-applicants of the house.

    Documentation Procedure:

    Aside from the duly filled application form for Kotak Bank Home Loan Transfer, you will be asked to submit a great many documents as listed below.

    • Proof of Income: Salary slips, Income Tax Return Papers, Form-16, CA-verified audits, recent bank statements etc.
    • Proof of Age: Driving License, Voters ID Card, PAN Card, Passport, Aadhar Card, SSLC Book, Birth Certificate etc.
    • ID Proof: Copy of any photo and signature bearing Government ID Cards such as the ones mentioned above.
    • Proof of Residence: Rental/ lease agreement, Ration Card, any of your most recent utility bill, a letter from your HR certifying the same etc.
    • Proof of educational qualifications: School and university certificates.

    FAQs (Frequently Asked Questions):

    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 INR 20 lacs and INR 75 lacs.

    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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    Kotak Mahindra Bank Home Loan Balance Transfer Reviews

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