Kotak Bank Personal Loans are an easy and efficient credit option that can help an individual with unexpected expenses, plan a vacation, pay fees, make arrangements for weddings and the like. In short, personal loans from Kotak can aid in almost any expenditure that one hasn’t actually planned for in advance and help in making the best of a worst situation at times. Personal loans from Kotak Bank are readily available through minimal documentation and low waiting periods.
Kotak Bank Personal Loan interest rates have seen a surge and fall in the last few years following changes in the repo rate from RBI. As of July 2015, the rates for personal loans from Kotak Bank range from 13-24% and might be applicable for salaried and self-employed individuals. The interest rates are variable for different customers and categories of customers and are at the sole discretion of the bank.
|Interest Rate||11.5% p.a. to 24% p.a.|
|Loan Amount||Minimum: Rs.50,000 Maximum: Rs.15 lakh|
|Loan Tenure||12 to 60 months|
|Lowest EMI||Rs.1,100 (calculated at lowest loan amount taken for the maximum loan tenure at minimum permissible interest rate).|
|Processing Fee||Up to 2% of the loan amount + GST.|
|Age||21 to 58 years|
|Prepayment Charges||Lock in period of 12 months. After 12 months, 5% foreclosure charges + GST on outstanding principal amount.|
|Foreclosure Charges||5% foreclosure charges + GST on outstanding principal amount.|
After availing a personal loan of any amount from Kotak Bank, the loan amount needs to be paid back in equated monthly installments (EMIs) and every EMI consists of a portion of the principal amount as well as the interest charged. As the personal loan moves towards maturity, the principal portion gradually increases and the interest portion decreases.
The method for calculating the EMI on a personal loan can be mentioned as follows -
E = P*r*[(1+r)^n/((1+r)^n-1)]
Here E - Monthly EMI, r - rate of interest per month, n - number of years.
For a ballpark figure of Rs. 1,00,000 at an interest rate of 13% with a loan tenure of 1 year, the first payable EMI would be Rs. 44,659 out of which the interest will account for Rs. 4,557.
For example, a personal loan of Rs. 10,00,000 for a period of 3 years at an interest rate of 13% from Kotak Bank would have the following scenario for the EMI to be paid (starting from August 2015) -
|Year||Total Payment (INR)||Balance (INR)||Principal Portion (INR)||Interest Portion (INR)|
It is to be noted that though the amounts of principal and interest keep varying throughout the loan tenure, the total EMI amount doesn’t change much.
Kotak Personal Loan interest rates stay the same for any salaried individual who has been approved for availing a personal loan. The approval process might be dependent on several factors such as -
All the above factors notwithstanding, any change in the advertised interest rates is at the sole discretion of the bank.
A personal loan can serve as an emergency financial airbag, but a bit of planning always helps and it especially comes in handy when dealing with CIBIL scores. Along with a credit history report, scores from CIBIL play a pivotal role in furthering the case of getting a personal loan approved from Kotak Bank. CIBIL scores range from 300 to 900 and a score above 700 is considered a good one. Scores above 750 might allow the bank to consider offering a better rate of interest to the customer. Else the rates might be higher than expected. Doing a check on the CIBIL score and fixing the same to an appreciable level might help in getting preferential interest rates.
Availing a Kotak Bank personal loan is easy for salaried individuals who meet the base minimum eligibility criteria, however, the following points should be borne in mind -
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