Will I have to pay any charges for pre-closing the loan after 3 years?

Yes, if you pre-close the loan after 3 years, a foreclosure charge of 2% plus applicable taxes on the outstanding principal is levied.

Will pre-closing my loan affect my credit score?

Pre-closing your loan can positively impact your credit score as it demonstrates financial responsibility. However, ensure that all procedures are correctly followed and that you obtain the NDC to reflect the closed status of the loan in your credit report.

What should I do if I haven't received the No Due Certificate after pre-closure?

In such case, you should contact the Kotak Mahindra Bank’s branch from where the loan was originally disbursed, and report the issue immediately.

Kotak Mahindra Bank Personal Loan Preclosure

Kotak Mahindra Bank customers wishing to pre-close their personal loan prior to its maturity can initiate the process by visiting the branch where the loan was originally disbursed. However, it is important to note that the bank permits foreclosure only after the payment of the first EMI. For loans foreclosed within three years, a charge of 4% plus applicable GST on the outstanding principal is levied. For loans foreclosed after three years, a charge of 2% plus applicable GST on the outstanding principal will be levied.

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Kotak Bank Personal Loan Pre-Closure / Foreclosure Charges

Foreclosure charges (up to three years)

4% of the outstanding loan amount + GST

Foreclosure charges (after

three years)

2% of the outstanding loan amount + GST

Requirements for Kotak Mahindra Bank Personal Loan

The Kotak Mahindra Bank has to complete 12 EMI payments before he/she can apply for a personal loan foreclosure.
Following the completion of 12 EMIs, the customer has to send a foreclosure written request to the bank. The customer will be required to serve a notice period till the issuance of foreclosure statement from the bank.
To make the foreclosure, the customer will need to have the foreclosure statement, and the turn-around time of Kotak Mahindra Bank to issue the statement is between 10-20 working days.

To know more about the norms of a Kotak Mahindra Bank personal loan foreclosure, the customer can send a query to the customer care unit of the bank.

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How to Pre-Close Kotak Mahindra Bank personal loan?

The customer has to write a request to Kotak Mahindra Bank that he/she wishes to foreclose the personal loan from his/her registered email ID. This can be done only after the customer has completed 12 EMI payments.
The customer will have to serve a foreclosure intimation period of a maximum of 30 days till the bank issues the foreclosure statement.
The customer has to then submit the pre-closure cheque to the bank. This must be done at least 7 days prior to the next EMI of the personal loan.
Do note that the pre-closure payment can be made via cheque or Demand Draft that has been written in favor of Kotak Mahindra Bank.
Once the cheque is cleared by the bank, the foreclosure will be recorded in the books of the bank.
Kotak Mahindra Bank will then send the customer a No Objection Certificate (NOC) and any EMI post-dated cheques 15 days after the termination of the loan account.

The pre-closure charges will be applicable and there will be no waiver on the pre-closure charges, the lock-in period and the notice period that the customer will have to serve prior to closing the personal loan.

Things to Ensure After Foreclosing a Kotak Personal Loan

Once the foreclosure payment has been made via cheque or Demand Draft, the customer will have to ensure that bank issues the foreclosure transaction receipt.
15 days after the termination of the loan account, the bank has to send you the No Objection Certificate, No-Dues Certificate, Closure Certificate, etc.
Just to be on the safe side, the customer can request the bank to issue a Statement of Accounts.
Ensure that you have been charged correctly by the bank. Do through the foreclosure statement and ensure that the break-up of the cost of the pre-closure is correct.

For any queries or feedback related to personal loan foreclosure, customers can contact the customer care unit of Kotak Mahindra Bank by dialing 18602662666 between 9:00 am to 6:00 pm from Monday to Friday.

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FAQs on Kotak Mahindra Bank Personal Loan Preclosure

Will I have to pay any charges for pre-closing the loan after 3 years?
Yes, if you pre-close the loan after 3 years, a foreclosure charge of 2% plus applicable taxes on the outstanding principal is levied.
Will pre-closing my loan affect my credit score?
Pre-closing your loan can positively impact your credit score as it demonstrates financial responsibility. However, ensure that all procedures are correctly followed and that you obtain the NDC to reflect the closed status of the loan in your credit report.
What should I do if I haven't received the No Due Certificate after pre-closure?
In such case, you should contact the Kotak Mahindra Bank’s branch from where the loan was originally disbursed, and report the issue immediately.

Important Personal Loan Pages

Personal Loan Eligibility by Banks

Personal Loan Interest Rates by Bank

Personal Loan EMI Calculator by Bank

Personal Loan Customer Care by Bank

Personal Loan Status Track by Bank

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