About Kotak Mahindra Bank Personal Loan
Kotak Mahindra Bank was incepted in the year 1985. It offers personal loan to help an individual financially. An individual can avail personal loan to meet the unexpected expenses arising due to some medical emergency, to have a dream vacation, to pay your college fees, for meeting your wedding expenses, to re-decorate to home or to buy consumer durables.
Kotak Mahindra Bank Personal Loan Eligibility
The basic eligibility for a salaried individual to avail a Kotak Mahindra personal loan are as follows:
- Profile: The applicant must be a resident Indian and he must be employed at a Public limited company or MNC or a large private limited company.
- Age: At the time of taking the loan the minimum age requirement is 21 years and at the maximum age is 58 years.
- Income: The applicant's net monthly salary must be a minimum of Rs.25,000.
- Educational Qualification: The applicant must be a graduate.
- Residence: The applicant must be residing in a city for at least one year.
- Work experience: The applicant must have minimum 2 years of work experience.
- Residence telephone: The applicant must have a telephone at his place of residence.
Factors affecting Kotak Mahindra Bank Personal Loan Eligibility
There are many factors that affect the applicant's’ eligibility. Bank prefer to give loans to those who are capable of repaying the loan and who do not default on making the payments. Some factors that affect an applicant’s personal loan eligibility are:
- Residence: The personal loans are easily sanctioned to those living in metro cities. The preference is also given to those who have their own home than compared to those living in a rented flat. As those who have their own home will not have an additional financial burden of paying the rent. He will also have a higher disposable income.
- Income: The level of income indicates how much you are capable of repaying the loans and paying the EMIs on time. This affects the total loan amount that will be sanctioned to you. If your income is higher, the chances of you getting a bigger amount loan is higher.
- Age:The age of the applicant is another factor that the bank will consider before offering you a loan. If you are too young, the banks will be hesitant to give you a loan as there is a higher chance of the applicant shifting the job.
- Type of employment: The self- employed stand a lower chance of getting a loan than compared to salaried individual and salaried professionals. Self-employed have inconsistent income when compared to salaried individuals.
- Employment status: An applicant who has stayed in a company for a longer period will get higher preference. It shows stability of income flow and the bank can be assured that the applicant is having constant cash flow to pay for the EMIs.
How CIBIL score affects your Kotak Mahindra Bank Personal Loan Eligibility?
When an applicant applies for a loan with Kotak Mahindra Bank, the bank runs a credit check on the applicant and reviews his credit report. If the CIBIL Score is above 750, the bank will further consider your application and go through your credit report.
The bank will take into consideration the loans that you have taken previously and closed. The bank will check the credit payment history to check how efficiently you have repaid the loan. It also considers the types of loans that the applicant has taken and checks if he has a good mix of both secured and unsecured loans.
If you have agreed to settle for a loan due to certain financial constraints, then it gets recorded in the credit report and stays in the report for 6 years. The settlement of the loan is considered as a negative remark and hence the Kotak Mahindra Bank might not offer you a personal loan as they might be unsure about your capacity to repay the loan.
How to increase Kotak Mahindra Bank Personal Loan Eligibility?
You can do the following to increase Kotak Mahindra Bank personal loan eligibility :
- Maintain a good credit history: Be sure to pay all your previous EMIs on time and that you do not miss out on any deadlines. Find ways to increase your CIBIL score and don’t let the banks offer you any settlement on loans.
- Get lower EMIs on existing loans: If you are able to refinance your existing loan for a lower interest rate or extend the tenure of the existing loan, you can reduce the EMIs each month and ensure that you do not miss out on payments and it becomes affordable to you pay the EMIs on time.
- Prepayment: If you have lesser EMIs left on any loan, then prepay them and close the loan. The applicant will then have a higher disposable income to show to the bank and hence the chances of the applicant getting the loan is higher.
- Have both secured and unsecured loans: Have a mix of both the types of loan. The secured loans are favourably looked at and it shows the bank that you do have managed to attain some assets over the period of time and not just built credit.
- Don’t apply for too many loans: If you are in need of a loan, then do not go around applying at all banks and wait to get lucky. All the banks will run a credit check and it gets recorded in your credit report. This will also look bad on your report and affects your credit score.
- Don’t have too many credit cards: Having too many credit cards is also unfavourable. Though you may not have used the credit on all of the cards, it considerably lowers your overall credit limit.
FAQs on Kotak Mahindra Bank Personal Loan Eligibility
Q. What are the age limits required for a salaried individual to take a Kotak Mahindra Bank personal loan?
A. At the time of taking the loan the minimum age requirement is 21 years and at the maximum age is 58 years.
Q. Is there a minimum income requirement for a salaried applicant?
A. Yes, the applicant's net monthly salary must be a minimum of Rs.25,000.
Q. Is there a minimum educational qualification required to avail the personal loan from Kotak Mahindra Bank?
A. Yes, the applicant must be a graduate.
Q. What is the work experience that is required for a salaried individual who wish to avail the personal loan from Kotak Mahindra Bank?
A. The applicant must have minimum 2 years of work experience.
Q. What is the minimum and maximum loan sanctioned by Kotak Mahindra Bank?
A. The minimum amount sanctioned towards personal loan is Rs.50,000 and the maximum amount is Rs.15 lakhs.
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