The document discusses factors that affect the interest rate on personal loans from Kotak Mahindra Bank. It states that the bank assesses each applicant's repayment capacity and risk level to determine the interest charged. Lower risk applicants like existing customers with a good relationship, higher credit scores, stable employment, and higher incomes tend to qualify for lower interest rates. The document also outlines eligibility criteria, required documents, fees and charges associated with Kotak Mahindra Bank personal loans.
2. FACTORS AFFECTING KOTAK
MAHINDRA BANK PERSONAL LOAN
INTEREST RATE
The rate of interest offered on a personal loan differs from one
applicant to another. The bank judges all applicants on certain
parameters to assess their repayment capacity and accordingly
charges the interest. If the bank considers the borrower to be a
higher risk, it is likely to charge a higher rate of interest and vice
versa. Several other factors also come into play. So, let us talk about
a few factors that impact personal loan interest rates.
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3. B A N K I N G R E L AT I O N S H I P W I T H K O TA K - I F T H E A P P L I C A N T I S A N E X I S T I N G C U S T O M E R
O F K O TA K M A H I N D R A B A N K , H E W O U L D H AV E B E T T E R C H A N C E S O F AVA I L I N G A L O W E R
R AT E O F I N T E R E S T. T H E A P P R O VA L A N D D I S B U R S A L P R O C E S S M AY A L S O B E F A S T E R . T O
G E T S U C H B E N E F I T S , T H E C U S T O M E R M U S T H AV E M A I N TA I N E D A H E A LT H Y
R E L AT I O N S H I P W I T H T H E B A N K A N D N O T D E F A U LT E D O N A N Y L O A N O R C R E D I T C A R D S
I N T H E PA S T.
CREDIT SCORE- THIS IS
PROBABLY THE FIRST THING
THAT THE BANK WOULD CHECK.
PEOPLE WITH A HIGHER CREDIT
SCORE ARE MORE LIKELY TO
GET A LOWER RATE OF
INTEREST ON KOTAK MAHINDRA
PERSONAL LOAN AS THE BANK
FINDS THEM TO BE MORE
RESPONSIBLE WITH THEIR
CREDIT.
INCOME OF THE BORROWER-
INCOME PLAYS THE MOST
CRUCIAL ROLE IN DETERMINING
ONE’S REPAYMENT CAPACITY
AND HIS ELIGIBILITY FOR THE
LOAN. PEOPLE WITH HIGHER
INCOME ARE LESS LIKELY TO
DEFAULT ON THE LOAN AND
POSE A LOW RISK FOR THE
BANK, AND HENCE THEY MAY BE
OFFERED A LOWER RATE OF
INTEREST.
• Employment Status- If a salaried
applicant is employed with a reputed
organization for quite a few years,
there are chances of him getting a
personal loan at a low-interest rate.
On the other hand, if the applicant
has switched jobs too often or works
with a start-up, the bank may offer
him a higher rate because of the
greater risk involved.
• Loan Amount- The loan amount
also plays a vital role in deciding the
personal loan interest rate in Kotak
Mahindra Bank. However, there is no
set rule as to how it would affect the
rate.
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4. KOTAK MAHINDRA BANK PERSONAL LOAN
ELIGIBILITY
Minimum Age 21 years
Maximum Age 58 years
Minimum Salary Rs. 20,000 per month
Minimum Educational Qualification Graduate
Residential Status Indian Resident
Employment Status
Employee of MNC, Public Limited Company
or Private Limited Company
Minimum Work Experience 1 Year
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5. DOCUMENTS
REQUIRED
FOR KOTAK
MAHINDRA
BANK
PERSONAL
LOAN
Along with a duly filled application form,
the applicants need to provide a set of
documents as valid proof of the
information furnished in the form. These
include:
• Proof of Identity, which may include
PAN, Aadhaar, Voter’s ID, Driving
License, Passport, etc.
• Proof of Address which includes
Passport, Driving License, Voter’s ID,
etc.
• Proof of Income which may include a
bank statement or salary slip for the last
three months
• 2-3 Passport-sized photographs
The bank may ask for more documents as
they deem fit to verify an applicant’s, if the
above documents do not suffice
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6. KOTAK MAHINDRA BANK PERSONAL LOAN
FEES AND CHARGES
Type of Fee/Charge Amount/Rate
Processing Fee 2.5% of the loan amount + taxes
Credit Appraisal Charges Up to 5% of the loan amount subject to a maximum of Rs. 7,500
Interest on Overdue EMI
3% per month starting after the date of unpaid amount falling due
till it is cleared
Lock-in Period 12 months
Prepayment/Foreclosure Charges 5% of the outstanding principal amount
Stamping Charges As per the Stamp Act applicable in the state
Collection Charges
30% of the cheque/instrument dishonor charges + overdue
interest (if any)
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