Multiple banks. Different interest rates. Call it a "conflict of interest".

Kotak Mahindra Bank Personal Loan Interest Rates

Kotak Mahindra Bank offers personal loans for customers with a minimum monthly salary of Rs.20,000 at attractive interest rates between 11.25% to 19.99% p.a. Based on their eligibility, customers can avail loans between Rs.50,000 and Rs.15 lakh and choose a tenure subject to a minimum of 1 year and a maximum of 5 years. Kotak Mahindra Bank charges a processing fee up to 2.5% of the loan amount.

Particulars Salaried
Interest Rate 11.25% - 19.99%p.a.
Processing Fee Up to 2.5% + GST
Loan Tenure Minimum: 1 year; Maximum: 5 years
Loan Amount Rs.50,000 – Rs.15 lakh
Salary / Income Minimum monthly income of Rs.20,000
Employment Status Salaried Individual
Credit Score 750
Lowest EMI per Lakh Rs.2,187
Pre-Payment/Foreclosure Charges 5% of Outstanding Principal + GST
Overdue EMI Interest 3% per month on the amount due

Factors affecting Kotak Mahindra Bank personal loan interest rates

  • Repayment tenure - Usually, the longer the tenure, the higher will be the interest rate set for the loan.
  • Credit score of the applicant - Kotak Mahindra Bank takes into consideration the repayment track record of the individual which is reflected in his/her credit score. The lower the credit score of the individual, due to risk involved, the bank will set a higher interest rate.
  • Income of the individual - With Rs.20,000 set as the minimum requirement to be eligible to apply for a personal loan from Kotak Mahindra Bank, the income of the individual plays a vital role in the interest rate offered by the bank. Generally, the lower the income the individual, the higher will be the interest rate set by the lender.
  • Relationship with the Kotak Mahindra Bank - If the applicant has had a long-term relationship with the bank, then the bank might possibly offer him/her a lower interest rate.


1. For individuals with a monthly salary of Rs.20,000

Let’s assume that Mr. Mohan has applied for a personal loan from Kotak Mahindra Bank, and since he has no loan repayment history or a credit card, his credit score is below average. Due to the risk involved, Kotak Mahindra Bank set an interest rate of 19.99% p.a. on the Rs.1 lakh loan amount that he has availed. The bank has also charged him a processing fee of 2.5% on the loan amount of Rs.1 lakh. To repay the loan amount of Rs.1 lakh in 12 months, Mr. Mohan will have to pay an EMI of Rs.9,263.

Month Principal Paid(A) Interest Paid(B) Total Payment (A+B) Outstanding Loan Balance
1 Rs. 7,597 Rs. 1,666 Rs. 9,263 Rs. 92,403
2 Rs. 7,724 Rs. 1,539 Rs. 9,263 Rs. 84,679
3 Rs. 7,852 Rs. 1,411 Rs. 9,263 Rs. 76,827
4 Rs. 7,983 Rs. 1,280 Rs. 9,263 Rs. 68,844
5 Rs. 8,116 Rs. 1,147 Rs. 9,263 Rs. 60,727
6 Rs. 8,251 Rs. 1,012 Rs. 9,263 Rs. 52,476
7 Rs. 8,389 Rs. 874 Rs. 9,263 Rs. 44,087
8 Rs. 8,529 Rs. 734 Rs. 9,263 Rs. 35,559
9 Rs. 8,671 Rs. 592 Rs. 9,263 Rs. 26,888
10 Rs. 8,815 Rs. 448 Rs. 9,263 Rs. 18,073
11 Rs. 8,962 Rs. 301 Rs. 9,263 Rs. 9,111
12 Rs. 9,111 Rs. 152 Rs. 9,263 Rs. 0

2. For individuals with a monthly salary of Rs.45,000

Let’s assume that Mr. Anbu earns a monthly salary of Rs.45,000 and applied for a personal loan of Rs.3.5 lakh. Since Mr. Anbu has had a personal loan with Kotak Mahindra Bank in the past and has made his payments on time, he has a good relationship with the bank and a good credit score and repayment track record. Kotak Mahindra Bank sets the lowest possible interest rate of 11.25% on the loan amount and charges a processing fee of 1% of the total loan amount to be availed. Mr. Anbu also chooses a repayment tenure of 12 months, which works in his favour with regard to the interest rate that was set by the bank. To repay the loan on time and keep his credit score optimum, Mr. Anbu will have to pay an EMI of Rs.30,975.

Month Principal Paid(A) Interest Paid(B) Total Payment (A+B) Outstanding Loan Balance
1 Rs. 27,693 Rs. 3,281 Rs. 30,974 Rs. 3,22,307
2 Rs. 27,953 Rs. 3,022 Rs. 30,975 Rs. 2,94,354
3 Rs. 28,215 Rs. 2,760 Rs. 30,975 Rs. 2,66,139
4 Rs. 28,479 Rs. 2,495 Rs. 30,974 Rs. 2,37,660
5 Rs. 28,746 Rs. 2,228 Rs. 30,974 Rs. 2,08,914
6 Rs. 29,016 Rs. 1,959 Rs. 30,975 Rs. 1,79,898
7 Rs. 29,288 Rs. 1,687 Rs. 30,975 Rs. 1,50,610
8 Rs. 29,562 Rs. 1,412 Rs. 30,974 Rs. 1,21,047
9 Rs. 29,840 Rs. 1,135 Rs. 30,975 Rs. 91,208
10 Rs. 30,119 Rs. 855 Rs. 30,974 Rs. 61,088
11 Rs. 30,402 Rs. 573 Rs. 30,975 Rs. 30,687
12 Rs. 30,687 Rs. 288 Rs. 30,975 Rs. 0


  1. Can you tell me the list of documents that I would need to submit to avail a personal loan from Kotak Mahindra Bank?
  2. You will have to submit proof of identification, income, address, bank statements for the last 3 months, and 3 passport-size photographs.

  3. Suppose I wish to avail a loan of Rs.15 lakh, should I provide collateral?
  4. The personal loan schemes offered Kotak Mahindra Bank are unsecured, which means that no collateral will be required to avail a loan of Rs.15 lakh from Kotak Mahindra Bank.

  5. As a self-employed individual, can I apply for a personal loan from Kotak Mahindra Bank?
  6. Unfortunately, Kotak Mahindra Bank offers unsecured personal loans for salaried individuals only.

  7. What are the late payment charges set by Kotak Mahindra Bank?
  8. Kotak Mahindra Bank charges 3% per month as late payment charges of the overdue amount.

  9. Can I top-up my existing Kotak Mahindra Bank personal loan?
  10. Yes, the top-up option is available for existing personal loan customers of the bank.

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