Kotak Mahindra Bank offers home loans to retail customers. You can choose the right home loan scheme for you by matching the loan features with your requirements. In this article, we will cover all possible questions related to Kotak Mahindra Bank home loans.

1. Top home loan schemes of Kotak Mahindra Bank

Home Loan

Get swift approvals for home loans in metro cities. Up to 75%-80% of the property cost can be obtained as financing. 

Balance Transfer

Transfer existing home loan balance to Kotak Mahindra Bank to pay off the outstanding balance at a lower interest rate. Customised instalment plans are offered.

Loan Against Property

Fulfil your personal and business needs through a loan against property. Flexible loan eligibility for a loan amount of Rs.10 lakh-Rs.50 crore. Commercial, residential, and industrial property are eligible with easy repayment options.

Pradhan Mantri Awas Yojana (PMAY)

This is a credit-linked subsidy scheme to provide housing for all by 2022. Interest subsidy is provided to beneficiaries from economically weaker sections, low-income groups, and middle-income groups.

2. Interest rates of Kotak Mahindra Bank home loans

Scheme

Interest Rate for Salaried Applicants*

Interest Rate for Self-Employed Applicants*

Special Balance Transfer (both salaried and self-employed)

6.75% onwards

Non-Balance Transfer schemes 

LTV<=80%: 6.75%-8.30%

LTV>80%-90%: 6.85%-8.35%

LTV<=80%: 6.85%-8.40%

LTV>80%-90%: 6.95%-8.45%

*Interest rates are as of 7 February 2021. LTV is the Loan-to-Property Value Ratio. The repo rate is 4%.

3. Features and benefits of Kotak Mahindra Bank home loan

  • Get up to 75%-80% of the property’s value as financing.
  • Zero processing fee on online applications for a home loan.
  • The bank offers doorstep service instead of visiting the bank multiple times.
  • Documentation for the loan is kept at a minimum.
  • Insurance option to cover your home loan at an affordable premium.
  • Competitive interest rates offered on home loans.
  • Quick home loan application processing.
  • Easy balance transfer facility at low-interest rates.
  • Balance Transfer Top-Up also available.

4. Who is eligible for Kotak Mahindra Bank home loans

Home Loan Eligibility Criteria for an Individual

  • Age:
    • Salaried between 18 and 60 years old
    • Self Employed between 18 and 65 years old
  • Gross Income of Resident Indian Individual:
    • New Delhi, Mumbai, Bangalore, Pune and Chennai – Minimum income should be Rs.20,000/month
    • Other cities – Minimum income should be Rs.15,000/month
  • Minimum Qualification:
    • Graduate when the applicant is employed with a private limited company or partnership firm. If the applicant is employed with a Public limited company or MNC or Government or Public Sector Company, then there are no such criteria

Home Loan Eligibility Criteria for a Partnership Firm/LLP/Indian Company

  • Should be in existence for at least three years
  • Gross Income of Partnership firm/ LLP/Indian Company:
    • New Delhi, Mumbai, Bangalore, Pune and Chennai – Minimum net income should be Rs.2,40,000 p.a.
    • Other cities – Minimum net income should be Rs.1,80,000 p.a.

Home Loan Eligibility Criteria for a Hindu Undivided Family (HUF)

  • Karta of HUF must be applicant/co-applicant
  • Should be in existence for at least three years
  • IT returns of HUF for three years should be obtained
  • Net Income of a Hindu Undivided Family:
    • New Delhi, Mumbai, Bangalore, Pune and Chennai – Minimum income should be Rs.2,40,000 p.a.
    • Other cities – Minimum income should be Rs.1,80,000 p.a.

5. Documents required for Kotak Mahindra Bank home loans

Salaried Employees

  • One passport size photograph
  • PAN card copy (all applicants with relationship proof)
  • Aadhaar card copy (all applicants with relationship proof)
  • Residence proof copy (all applicants with relationship proof)
  • Last three months’ salary slips (of all applicants whose income is considered)
  • Previous two years’ Form 16 and ITR (of all applicants whose income is considered)
  • Last six months’ bank statement in original where salary credited (of all applicants whose income is considered)
  • Last six months’ bank statement of any other bank a/c (of all applicants whose income is considered)
  • Relationship proof
  • Details of the loan availed with a track record (if any existing loans)
  • All property documents (chain) with sanction map

Self-Employed Professionals

  • Bank statement/passbook for last 12 months (for applicants whose income is being considered for eligibility) of all accounts mentioned in application form mentioning the name of account holders, account number, bank name and branch
  • Aadhaar card copy
  • Latest three years’ income tax returns, personal and business along with computation of income (two years for Kotak Group customers)
  • Latest three years’ profit and loss accounts and balance sheet with schedules duly certified by a chartered accountant (two years for Kotak Group customers)
  • Degree certificate
  • For partnership firm:
    • Registered partnership deed
    • Letter from other partners stating
  • For Company:
    • Memorandum and Articles of association
  • For HUF:
    • IT returns
  • At least two references (Credit Manager to decide the parties)

Self-Employed Non-Professionals

  • Bank statements for the last 12 months – from the current account and all other bank accounts mentioned in the application form
  • Aadhaar card copy
  • Latest three years’ income tax returns, personal and business along with computation of income (two years for Kotak Group customers)
  • Latest three years’ profit and loss accounts and balance sheet with schedules duly certified by a chartered accountant (two years for Kotak Group customers)
  • Registration proof with tax authorities as applicable to the type of business
  • For partnership firm:
    • Registered partnership deed
    • Letter from other partners stating
  • For Company:
    • Memorandum and articles of association
  • For HUF:
    • IT returns
  • Obtain a business profile on the letterhead of the proprietorship/partnership firm/company/HUF/LLP
  • At least two references (Credit Manager to decide the parties)
  • POA required for companies/HUF/Partnership Firm /LLP

Non-Resident Indians

  • Last six months bank statements from domestic (NRE/NRO/FCNR/NRNR) and salary/active international account
  • Copy of valid passport
  • KYC Documents
  • Income proof for fixed salary:
    • Salary certificate (in English) specifying name, date of joining, designation and salary details OR
    • Latest three months’ salary slips
  • Income proof for variable salary:
    • Salary certificate (in English) specifying name, date of joining, designation and salary details for last six months OR
    • Last six months salary slips
  • Proof of continuity of employment for the last three years
  • Appointment letter/employment contract copy (if the contract is in a language other than English, an English translation of the same attested by the Embassy/employer should be given)
  • For merchant navy employees copy of the CDC (Continuous Discharge Certificate) required as an additional document
  • If the customer is overseas, a power of attorney must be as per the standard draft duly attested by the Indian consulate at the place of residence of the NRI customer. In case NRI customer is not available in India at the time of application, attested by a public notary in the place of residence of the NRI customer
  • If the customer is in India, Power of Attorney is also required

6. Fees and charges

Processing Fee (Non-Refundable)

Loan Amount

Salaried (excluding GST and Statutory dues)

Self-Employed (excluding GST and Statutory dues)

Top Up/Commercial Purchase (excluding GST and Statutory dues)

< Rs.30 lakh

0.25% 

0.50%

1%

>Rs.30 lakh

0.50%

0.50%

1%

Documentation Charges (Non-Refundable)

Rs.4,000 (at the time of disbursement) 

Charges for Interest Certificate/Account Statement

Free once in a financial year. Thereafter, Rs.250 per instance

Switch Fee

Switch to a lower rate in floating-rate loans (Housing/Extension/Improvement): Rs.10,000

Switch to the benchmark index and lowering of floating rate interest: Rs.15,000

Repayment Mode | Account swap charges

Rs.500 per instance

Charges for Copy of any Document

Rs.500 per instance

Charges for Duplicate NOC | No Dues Certificate

Rs.500 per instance

Prepayment Charges

Nil

For HL Top-up:

Floating rate term loans for individuals for personal purpose – NIL

The minimum period between any two prepayment shall be at least 6 months.

7. Kotak Mahindra Bank home loan EMI calculator

We offer an important tool, the home loan calculator, to help you evaluate and plan your budget for a home loan.

8. Frequently asked questions (FAQs)

Q. When can I make a prepayment towards my home loan?

A. You are not allowed to make prepayments within the first six months from the date of home loan EMI commencement. The initial six months are considered as a lock-in period. You can make prepayments from the 7th month.

Q. Is there a restriction on how much prepayment I can make?

A. There is no restriction as such. A part prepayment of a minimum of Rs.25,000 and a maximum of up to 25% of the outstanding loan amount can be made without any prepayment charges every 6 months. For any part prepayment over 25%, 4% (plus GST and statutory dues) of the excess prepayment amount shall be charged as prepayment charges.

For full prepayment any time after the lock-in period, prepayment charges shall be 4% (plus GST and other applicable taxes) of the foreclosure loan amount + amounts prepaid during the last 12 months.

Q. What are the stamp duty charges applicable?

A. Stamp duty on a loan agreement, guarantor agreement, and registration charges vary from state to state. It may also vary based on the stamping/notarisation of RBI prevalent at the time of loan disbursement and other affidavits as applicable.

Q. When is the right time to transfer my home loan balance from another bank?

A. When you are in one of the following situations, you may transfer the home loan balance from another bank to Kotak Mahindra Bank:

  • Looking to reduce the interest rate on home loans to reduce the instalment payment.
  • Looking to pay off the home loan as early as possible.
  • Looking to use the equity in your house so you can use the money for your needs. A top-up loan can be taken above the existing loan to manage finances for your needs.

Similar Banks Offering Home Loans

ICICI Bank  Central Bank of India  HDFC Bank  Axis Bank 
PNB Bank  Andhra Bank  Corporation Bank  Union Bank 
IDBI Bank  Yes Bank  Bank of India  CitiBank 
HSBC Bank  RBL Bank  SBI Home Loan Tax Benefit

 

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