Kotak Bank Home Loan

Features and Benefits of Kotak Bank Home Loan

Following are the key features and benefits of Kotak Mahindra home loans:

Low Interest Rate

A low-interest rate matters tremendously, as it can make a big difference in your financial future. Kotak Bank home loan offers interest rates starting at just 8.75. This ranks among the best in the market, making it a more appealing and affordable option to borrowers. This can ultimately empower you to save thousands of your hard-earned money on your monthly repayments, thereby reducing the overall financial burden on your budget. Hence, you can confidently buy your dream home without worrying about hefty EMIs.

High in Loan Tenure

Kotak Mahindra Bank home loan proffers you the flexibility to choose your loan tenure at your convenience and repayment capability. Namely, you can select your repayment duration ranging from 5 to 25 years. By doing so, you can adjust your home loan EMIs to perfectly align with your monthly income and effectively minimise the chances of default. Moreover, the Bank offers the flexibility of starting with lower EMIs and gradually increasing them as your income grows, ensuring a comfortable repayment journey.

Generous Loan Amount

Kotak Mahindra home loans provide up to 90% of the property’s market value. If you are looking for a home loan with a substantial amount, Kotak Bank home loan is an ideal option for you. Although, it is crucial to recognize that the ultimate loan amount is contingent upon several factors, such as your CIBIL Score, monthly income, property demand, and overall creditworthiness. Notably, you can use the Kotak Mahindra Home Loan Calculator via the Urban Money website, thereby easily estimating the loan amount you can avail of from the Bank.

Completely Digital

Nowadays, you can easily secure the Kotak home loan online, eliminating the need to visit a Bank branch. Hence, say goodbye to tedious paperwork and time-consumable bank visits and instead embrace the convenience of an end-to-end online application process. Notably, you can avail of these online services via the official website of Urban Money anytime, providing 24×7 assistance. And the entire process would hardly take around 10 minutes. And above all, the Bank offer a 50% discount on the processing fees for all digital applications.

Multi-Purpose Loans

Kotak Mahindra Bank home loan is catered not only for buying a property or home. The Bank extends its purpose further, making it a more borrower-friendly option. Namely, you can avail of this home loan for various purposes such as buying a ready-made or under-construction housing property, purchasing a plot and constructing a house on it, extending or renovating your existing house, transferring your outstanding house loan balance, or (almost) anything which pertinent your home requirements.

Tax Benefit

Opting for a Kotak Mahindra home loan makes you eligible for tax deductions. These tax deduction benefits typically come under Section 24(b) or Section 80C of the Income Tax Act, 1961, subject to specific conditions and limits. It is important to note that you become eligible for this tax deduction once the property construction is completed and you have acquired the possession certificate. You can utilise the Urban Money tax benefit calculator to gain further insights into your tax benefits. You can easily locate access to this handy calculator from the official website of Urban Money.

Moderate Documentation

Kotak home loans require only basic documents. Typically, the bank demand documents regarding your age proof, income proof, property proof, and account statement. Moreover, you can conveniently submit these documents online anytime and anywhere, without any time or geographical constraints.

Kotak Bank Home Loan Eligibility Criteria

Below written are the Kotak Bank home loan requirements and eligibility criteria.

Note: Salary must be regular either on a weekly, fortnight or monthly basis. The salary must be disbursed through cheque or direct bank credit but must not be in cash.

Types of Kotak Bank Home Loans

To accommodate a variety of housing demands, Kotak Mahindra Bank provides a wide range of home loan options. These consist of loans for building or buying a house, remodelling or improving an existing home, or renegotiating the terms of an existing loan. Here are some of the Kotak Mahindra Bank housing loan types:

Home Renovation Loan

Kotak Mahindra Bank’s home improvement loans are designed to renovate or upgrade homes. Borrowers can benefit from customised loan amounts, flexible tenures, and affordable interest rates.

Home Loan For Women

Kotak Mahindra Bank’s Home Loan Balance Transfer allows customers to switch their existing home loans to Kotak Mahindra Bank for better interest rates and repayment terms.

Kotak Bank Home Loan Fees and Charges

Prior to applying for a Kotak home loan, it is crucial to clearly understand the various fees and charges associated with the loan. Namely, apart from the interest rate, the predominant fees and charges that a borrower must pay to the bank are processing fees. This one-time charge typically encompasses the expenses related to document verification, credit history assessment, property valuation, and other administrative costs associated with your loan approval. Generally, the processing fee is paid only after your loan application is approved and is usually deducted from the loan amount disbursed. Moreover, besides the processing fees, an ideal borrower should also consider for other fees and charges they might encounter throughout the repayment journey. Let’s take a look at the list of major fees and charges for Kotak Mahindra bank home loan:

Documents Required for Kotak Bank Home Loan

There are several documents you need to submit along with your application process. The Bank uses these documents to verify your identity and assess your creditworthiness. Hence, it is crucial to approach this stage of your application process with more care and precision.

Following are the required document you need to submit for the Kotak bank home loan:

• Application Form: A duly signed application form with a photograph
• Proof of Identity: Aadhaar card, voter card, driving licence, passport, etc.
• Proof of Address: Ration Card, electricity bill, water bill, property tax receipts, post-paid mobile bill, etc.
• Proof of Income: Salary receipts, form 16, bank statements for the last six months
• Proof of Business: Tax returns for the past 3 years, balance sheet, profit and loss statement (applicable to self-employed individuals).
• Proof of Property: Sales deed, stamped agreement of sale, copy of construction plan, copy of cost estimates, legal scrutiny report, encumbrance certificate, property tax paid receipt, allotment letter.

How Does the EMI Calculation Work For Kotak Bank Home Loan?

You can compute your EMIs (Equated Monthly Investments) by knowing the principal loan amount, rate of interest and the maximum tenure offered by Kotak Bank. Here is the formula used for EMI calculation for Kotak Bank Home Loan. 

The formula for calculating the EMI amount is: 

EMI = (P × R × (1+r)^n)/((1+r)^n-1) 

Where, 

• The principal loan amount – P can range from ₹10 lakh to 10 crores.
• The rate of interest – R is at 8.65%
• The loan tenure – n can be up to 20 years

You can also use Home Loan EMI Calculator to calculate the EMI for Kotak home loans, making it more easy and quick. To avail of this handy tool, you can follow these simple steps:

• Visit the official website of Urban Money
• Tap the “hamburger button,” which you can locate at the top right corner of the home page.
• Upon tapping the hamburger button, an array of options will be displayed on your screen. You can find the “Bank Calculators” option and click on it there. 
• Subsequently, you will be redirected to another page where you can view a variety of calculators from different banks.
• Select the “Kotak Bank Calculators,” thereby you can locate an array of calculators offered by Kotak Bank. These include Kotak Bank Home Loan Calculator, Kotak Bank Business Loan Calculator, Kotak Bank FD Calculator, and more.
• Click the Kotak Home Loan EMI Calculator, and enter the required details, such as your desired loan amount, loan tenure, and interest rate.
• You can also adjust the sliders to change the values and see how they affect your eligibility.
• In a jiffy, the calculator will display the estimated monthly EMI you must pay. Moreover, you can view a breakdown of the principal and interest amount and the total payable sum of your home loan.
• You can also view the detailed repayment schedule and amortisation table by clicking on the ‘View Repayment Schedule’ button.

Balance Transfer Kotak Mahindra Bank Home Loan

Balance transfer is transferring your existing loan from one bank to Kotak Mahindra Bank due to lower interest and better terms. Namely, Kotak Bank offers a home loan balance transfer facility, featuring an interest rate commencing at just 8.75% p.a., coupled with tenures extending up to 20 years. Furthermore, the bank provides the opportunity to obtain a top-up loan alongside the balance transfer, catering to your supplementary financial needs. And the interest rate on a top-up loan tends to be lower than that of a personal loan or a credit card, rendering it a cost-effective solution.

Let’s take a look at the step-by-step process involved in the balance transfer of a Kotak Mahindra Bank home loan.

• First, you must inform your existing lender and demand a no objection certificate (NOC) or consent letter from them. 
• Second, you need to apply for a balance transfer home loan with Kotak Mahindra Bank and submit the required documents, such as KYC, loan statement, property papers, NOC, etc.
• Finally, the new lender will verify your documents and eligibility and pay off the outstanding loan amount to your existing lender.