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Buying a house is life’s biggest financial decision and it requires a lot of planning and calculations in advance. It’s only after all the contemplation that you can go about choosing the most feasible option to fit your need. Kotak Bank Home Loan, for instance, is a secured way for home loan financing. In this article, we are going to cover all possible questions that are related to Kotak Bank Home Loan.

Interest Rate

It is important to understand how much of the cost will be paid by the loan and how much will be your contribution. Kotak Bank presents different interest rates for the different category.

You definitely want to ensure that your lender provides auto-adjusted benefits on interest rates that extends into the future. That’s the reason why you need a credible lending institution with a dedicated and experienced workforce who will guide you through the entire process. 

Loan Amount Kotak Bank Home Loan Floating
Upto Rs. 25 Lakh 8.40%
Rs. 25 Lakh – 1 Cr 8.40%
Rs. 1 Cr – 3 Cr 8.40%
Above Rs. 3 Cr 8.40%


  • Kotak Bank charges the Processing Fee upto Rs. 10,000
  • Lowest EMI of Rs. 862 per lakh
  • Prepayment, Foreclosure Charges are NIL for floating rate loans
  • Any person between the age group of 21 to 60 years (salaried) and 21 to 65 years (Self Employed) can apply for the home loan
  • Quick and transparent processing
  • Special benefits for Premium banking customers
  • Repay your home loan in smaller EMIs and over a longer tenure of 20 years, depending on the situation of your finances
  • Avail attractive interest rates for different category

So, are you ready for buying a house?

If the answer is YES, you must be having a lot of questions in your mind like:

  • Am I eligible for the loan?
  • How much EMI will I need to pay every month?
  • How can I compare the EMIs of different banks on my own?
  • Where will I arrange the down payment amount and EMI amount from?
  • How much down payment do I have to make?

Let’s understand this with a simple example:

Let’s take a real-life scenario. Vipul’s forefather left him a grand but very old-fashioned house. Since the area is quite big, he somehow plans to renovate it into an old age home for which he doesn’t have to transform it much. Also keeping in mind that old people will love that genre of construction and ambience. Vipul’s budget is low but he also plans to open it as early as possible. For the same, he wants some financial assistance.

He goes to Kotak bank and enquires about the home loan in detail. With so much of information, he gets all the more confused. Besides, he decides not to take any burden regarding the loan. So why not start saving from today, so that he is able to pay the initial amount of the loan as well as the EMIs. Here lies the challenge! He wants a good return on every penny spent.

EMI calculator and ClearTax’s Save is a simple solution to all his problems.

ClearTax offers a brilliant way to save for your future through ClearTax Save! You can now save for your initial payment amount as well as other payments. But we also recommend you calculate and judge your investment options anyway. In general, people start saving their money in either of these, say RD (Recurring Deposit), Savings account, SIP (Systematic Investment Plan) etc.

Let’s find out the best way to save your money for down payment and for other expenses too:

Loan Value 10 lakhs
Time 2 yrs. (24 months)
Down payment 20% of Loan value = 2 lakhs

Now, consider different scenarios for saving your money for the next 2 years.  

Type of Investment Interest Rate Maturity Amount after 2 Years
Savings Account  4% Rs. 2,08,542 (Gains=Rs. 8,542)
Recurring Deposit  6.25%  Rs. 2,14,566 (Gains =Rs. 14,566)
SIP 14-18%   Rs. 2,40,000 (Gains = Rs. 40,000)

Hence from the above table SIP is the most rewarding saving’s scheme; as an SIP will enable you to invest regularly every month by diversifying your investment resulting in you owning your dream home sooner than you expected.

Home Loan EMI Calculator

A Home Loan EMI Calculator is a handy tool that calculates the monthly amount payable to the lender (Bank) every month. To calculate the EMI applicable on your loan amount, you need to use the sliders above to adjust the values of the Principal amount (P), Time duration (N), and Rate of interest (R).

Check your monthly EMI now.

Kotak Bank Home Loan – Plans

Kotak Bank home loan interest rate of 8.40%, which is one of the best rates available in the market. Although the rates vary depending upon certain basic criteria as mentioned above, they also vary depending on the type of home loan taken as per your requirement and convenience.

Different Home Loan Plans available with Kotak Bank are:

  • Home Construction Loan
  • Home Renovation Loan
  • Home Loan Balance Transfer

Parameters to decide Interest Rates:

3 basic criteria on which the loan interest rate would largely depend are:

  • Loan amount: Home Loan amount will decide the interest rate you are going to pay. The more the loan amount, the lesser the interest rate will be
  • Your Salary: higher the salary amount, lower would be the interest rate
  • Type of loan opted for: Women borrowers have a fair deal now! They can enjoy a lower rate of interest on home loans.

Benefits of Kotak Bank Home Loan

Customised products for a special category of people say, for women, senior citizens or NRIs are the key benefits of Kotak Bank Home Loan. It is designed to match the requirements of that particular segment of people in the best possible way.

Some of the popular products with their basic features are as follows:

  • Doorstep service
  • NIL repayment charges for floating rate home loans
  • Additional benefits to existing customers of the bank
  • Simplified documentation and approval process
  • Insurance Option to cover your Home loans at attractive premium
  • Quicker turnaround time

It is generally advantageous to take a housing loan as it will allow you to get tax exemptions. However, you must consult your CA/ income tax advisor to know the benefits/disadvantages in your specific case.

Eligibility Criteria

Although Kotak Bank home loan offers lots of flexibility, there are certain financial eligibility criteria on which an individual’s repayment capacity will depend. Some of the factors are:

  • Monthly or annual income
  • Source of income
  • Savings and credit history
  • Work experience
  • Age
  • Qualifications
  • Number of dependents
  • Probability of the individual continuing in the same occupation

Penalties/ Other Charges

Kotak Bank makes it a point to understand customer requirements and deliver a hassle-free loan with full transparency of the charges levied at any point of time. In addition to the mentioned interest rates, home loan also carries processing fee, foreclosure charges, document charges and many other charges in the whole process. Let’s discuss some charges in detail:

Loan Processing Charges Upto 1.25% of Loan amount
Documentation Charges 0.5% of the Loan amount
Stamping Charges Applicable as per the respective State’s Stamp Act
Commitment Charges 2% on loan sanctioned less amount disbursed
Overdue Interest 2% of Overdue Amount, compounded monthly
Collection Charges 30% of penal and cheque bouncing charges
Swap Charges( Replacement of PDCs) Upto Rs. 500 per Swap per Instance
Prepayment Interest / Foreclosure Charges For Individual Floating Rate Home Loans we allow full prepayment of the loan anytime (after the full disbursement of the loan) with NIL charges.

For Mortgage Loans (Other than Individual Floating Rate Home Loans) we do not allow full prepayment for a period of 6 months from the date of your first EMI. 4% of Principal Outstanding +4% on amount prepaid in last 12 months

Duplicate Issue of NOC Rs. 500/-
Solvency Certificate Rs. 10000/-
No Due Certificate NIL
Charges for furnishing a copy of the credit information report (CIBIL) to the applicant. Rs. 50/-
Charges applicable in case customer requests for copies of records pertaining to his transactions ( SOA / Amortization Schedule) Once yearly without any charge. Post that Rs. 250 per request.
APAC Reschedulement 1% of outstanding loan amount
Part Foreclosure Charge NIL for pure Individual Floating Rate home loans. Upto 25% of outstanding with a gap of 6 month without charges, exceeding that 4% of Principal Outstanding for other products

Process of Applying

You can apply for a Kotak Bank home loan by contacting the bank directly or by applying online. Availing a loan through an online marketplace improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, the value of the property, technical and legal checks on the property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.


Salaried employee Self-Employed
Filled up loan application form Filled up loan application form
2 Passport Size Photo 2 Passport Size Photo
Identity Proof – Passport/ Driving Licence/ Voter ID/ PAN Identity Proof – Passport/ Driving License/ Voter ID/ PAN
Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile

Kotak Bank Tax Benefits:

Taxpayers availing home loan do get some tax benefits. The principal repaid can be claimed under Section 80 C for up to Rs 1.5 lakhs. Further, the interest component can be claimed as a deduction up to Rs 2 lakhs in case of a self-occupied property and entirely if the property has been let out.

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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