|Interest Rate||10.75% to 17.99%|
|Loan Tenure||12 months to 48 months|
|Loan Amount||Rs. 1 lac to Rs. 15 lac|
|Processing Fee||Up to 2.5%|
|Part Prepayment Charges||Not allowed|
Allowed after payment of 12 EMIs
Foreclosure charges are 5% of the outstanding amount
Kotak Mahindra Bank Personal Loan Interest Rate starts at 10.75% to 17.99%. The loan amount is between Rs. 1 lac and Rs. 15 lac on 12 months to 48 months tenure. You can use the loan amount to take care of personal expenses such as home repair, medical emergency, travel, marriage, education of children, and a lot more. The loan is available for both salaried and self-employed professionals. To avail the loan, you must lie within the age group of 22 years and 55 years.
In the below-given post, we will discuss about the features of Kotak Mahindra Personal Loan Interest Rate, its details, factors that influence the rate of interest, other charges, loan cost illustration, EMI calculation, interest calculation, and frequently asked questions.
Below given are the features of personal loan interest rate
Apart from the interest rate, there are other charges applicable on your personal loan that you need to check
Kotak Mahindra provides the best interest rate after assessing your monthly income, loan amount, tenure, financial liabilities, employment history, and a lot more. The below given are factors that impact the decision of the bank about the applicable rate of interest:
Here is an example of the total monthly cost for personal loan Kotak Bank:
|Annual Percentage Rate (APR)||10.75% to 17.99%|
|Total monthly cost of the loan including all the fees and charges||
Here is the example:
EMI is equated monthly instalment that you have to pay on a fixed date every month towards loan repayment. The Kotak Mahindra Bank Personal Loan EMI depends on your loan tenure, amount, monthly salary, interest rate, and other factors. Below mentioned is an example of EMI amount at 10.75% for Rs. 1 lakh over different tenures.
|Loan Amount||4 Years Loan||3 Years Loan||1 Year Loan|
|Rs. 3 lac||Rs. 7,717||Rs. 9,786||Rs. 26,480|
|Rs. 6 lac||Rs. 15,435||Rs. 19,572||Rs. 52,959|
|Rs. 12 lac||Rs. 30,869||Rs. 39,145||Rs. 1,05,918|
EMI on loan considering 10.75% interest rate over different loan amounts and tenures:
|Loan Amount||4 Years||3 Years||2 Years|
|Rs. 1 lac||Rs. 2,572||Rs. 3,262||Rs. 4,649|
|Rs. 3 lac||Rs. 7,717||Rs. 9,786||Rs. 13,948|
|Rs. 5 lac||Rs. 12,862||Rs. 16,310||Rs. 23,246|
|Rs. 10 lac||Rs. 25,724||Rs. 32,620||Rs. 46,492|
Below given is the interest amount and EMI calculation for loan amount Rs. 1 lac over different tenures at 10.75% interest rate.
|Kotak Bank Personal Loan||4 Years||3 Years||3 Years|
|At 10.75% for loan amount Rs. 1 lac||Rs. 2,572||Rs. 3,262||Rs. 4,649|
|Total amount to pay including principal and interest||Rs. 1.23 lac||Rs. 1.17 lac||Rs. 1.12 lac|
|Total interest amount over the entire tenure||Rs. 23,456||Rs. 17,432||Rs. 11,576|
Below-mentioned are the frequently asked questions about personal loan interest rates and schemes by Kotak Mahindra:
Interest amount is the amount you pay to the bank over and above the principal borrowed amount. The bank applies an interest rate on the loan based on your financial and employment profile. It also considers your credit score to understand your repayment capacity and credit behaviour. These details help the financial institution to fix an interest rate on the personal loan.
Lower the interest rate, lower will be the cost of the loan, and vice-versa. However, the loan amount and tenure too have a say in the total loan cost. To get the lowest rate of interest, you must maintain a good CIBIL score, have sufficient disposable income to pay the EMIs, and have a great financial record.
Lower the loan amount and shorter the tenure, lower will the interest outgo. On the other hand, a longer tenure and higher loan amount will increase the total expense on the Kotak Bank personal loan. Thus, you must request for a loan amount wisely. Stick to a realistic figure as to how much cash you need. Do not borrow more than what you need. Similarly, you need to select a tenure as per your repayment capacity. The bank will decide the tenure as per your eligibility status for the loan. But you can choose to foreclose the loan to save on the interest payout.
Besides the interest rate on the loan, there are other charges that you may have to bear. Out of all the charges, the processing fee is the mandatory cost. For Kotak Bank personal loan, the processing fee is up to 2.5% of the loan amount + applicable tax. Apart from this fee, you may be charged additional charges based on certain scenarios.
For instance, if you cancel the loan, then loan cancellation charges will apply. Similarly, if you make a late payment or there is EMI cheque bounce, then relevant penalties will apply. To keep the expenses on the loan low, you must try to avoid the incidences that increases the loan cost.
As understood, interest rate charged by Kotak Mahindra has a great impact on the total expenditure on the loan. Thus, you may want to get the lowest interest offer. To get the ideal rate of interest, you must have a good CIBIL score, a clean repayment record, stable job and income, excellent repayment capacity, and perhaps a good relationship with the bank, among other factors. Special rates of interest may apply for borrowers who work for the government, reputed companies, defence sector, etc. A favourable financial profile will help you negotiate for the lowest interest rate.
EMI is the monthly instalment amount you pay towards the loan repayment. It contains component of both the interest amount and the principal that you have to repay. Thus, a lower rate of interest will significantly reduce the interest payout and vice-versa. This makes it moreover important for you to boost your credit score and financial profile to get the best rate of interest. Reduced rates mean reduced EMI burden, which may help you even the loan quickly as you are left with a higher disposable income.
Here is the EMI calculation formula:
In the above formula,
P = Loan amount or the amount you borrow from the bank. The borrowing amount is between Rs. 1 lac to Rs. 15 lac.
r = Monthly rate of interest. The lowest and the highest rate of interest is 10.75% and 17.99%, respectively.
n = Tenure in months. The tenure ranges between 12 months and 48 months.