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Kotak Mahindra Bank Personal Loan Interest Rate 2022

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Personal Loan

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Kotak Mahindra Bank offers personal loan to meet any urgent personal requirement of funds. This may include marriage expenses, medical emergencies, vacation expenses, big-ticket purchases, and more. The main reason why Kotak Mahindra personal loan is so popular in the market is the attractive interest rates that the bank offers.

Kotak Mahindra Bank Personal Loan Interest Rate

Starting at 10.25%

Processing Fee

Up to 2.5% of the loan amount + taxes

Loan Amount

Rs. 50,000 to Rs. 25 Lakhs

Loan Tenure

Up to 5 years

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.

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.

Banking Relationship with Kotak- If the applicant is an existing customer of Kotak Mahindra Bank, he would have better chances of availing a lower rate of interest. The approval and disbursal process may also be faster. To get such benefits, the customer must have maintained a healthy relationship with the bank and not defaulted on any loan or credit cards in the past.

All of these parameters are paid attention to when offering personal loan to someone. The final rate, however, is at the bank’s sole discretion.

Key Features of Kotak Mahindra Bank Personal Loan

Kotak Mahindra Bank is among the most popular lender for a personal loan in India. Competitive rates of interest, flexible repayment options, and quick disbursal are the main benefits of this loan. Given below are the key features of Kotak personal loan.

Multiple Usage- The loan proceeds can be utilized to meet any personal requirement such as wedding, travel, hospitalization, education, etc. The bank does not monitor the usage of a personal loan.

Instant Loan- The bank offers personal loan from Rs. 50,000 up to Rs. 25 Lakhs. On making an online application, the bank gives instant approval and the loan is disbursed within 3-5 business days. The process is even swifter in metro cities like Delhi/NCR, Mumbai, and Bengaluru.

Minimal Paperwork- Being an unsecured loan, there is minimal paperwork involved in Kotak Mahindra personal loans. This makes the approval process quicker.

Competitive Interest Rates- Personal loan interest rate of Kotak Mahindra Bank is quite reasonable, and this is why a lot of people prefer Kotak personal loans over other banks’.

Flexible Repayment Tenure- Kotak Mahindra Bank offers loan tenure of 1 year to 5 years. The applicant may choose the tenure as per his needs.

Customer Service- Kotak Mahindra Bank has a team of easily approachable and very helpful customer care executives who help the borrowers with their queries and complaints.

Kotak Mahindra Bank Personal Loan Eligibility & Document Required

The bank has set certain parameters to be fulfilled by anyone who wishes to apply for Kotak personal loans. Such criteria are mentioned below:

Minimum Age

21 years

Maximum Age

58 years

Minimum Salary

Rs. 20,000 per month

Minimum Educational Qualification


Residential Status

Indian Resident

Employment Status

Employee of MNC, Public Limited Company or Private Limited Company

Minimum Work Experience

1 Year

The above criteria are only indicative, and the sole discretion will be that of the banks in deciding whether someone is eligible to apply for the loan or not.

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.

Kotak Mahindra Bank Personal Loan Fees and Charges

Apart from the interest rate, there are certain other charges associated with Kotak Mahindra Bank as given in the table below:

Type of Fee/Charge


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)

Kotak Mahindra Bank Personal Loan EMI Calculator

Afinoz has made it easier for the applicants to check the EMI before they actually apply for the loan to help them make the right choice. This can be done using the Kotak Mahindra Bank Personal Loan EMI Calculator on Afinoz website.

The applicant needs to enter loan amount, interest rate and loan tenure. After this, the tool will show the EMI that he would be required to pay in the given condition. The user can check the EMI multiple times using varied figures until he attains an EMI amount that would fit his budget.

Given below is an example of Kotak Mahindra Bank Personal Loan EMI Calculator tool.

Loan Amount= Rs. 5,00,000

Interest Rate= 13% p.a.

Loan Tenure= 5 years

Using the calculator, we can find that the EMI in this situation will be Rs. 11,377.

Given below is the amortization schedule for the same year wise:


Principal Payment

Interest Payment

Outstanding Amount

Loan Paid till Date


























Kotak Mahindra Bank Personal Loan Repayment Options

Kotak Mahindra Bank offers multiple loan repayment options to the users. These include-

Electronic Clearing Service- Personal loan borrowers who do not have a savings/current account in Kotak Mahindra Bank can pay their personal loan EMIs using this facility. Standing Instructions will be set on a different bank’s savings/current account and the amount will be deducted on the given due date.

Standing Instructions- This is the best repayment mode for those who have an account in Kotak Mahindra Bank. It is effortless to set standing instructions on the account so that the amount is deducted monthly and there is no chance of missing the payments.

Post-dated Cheques- Those who have accounts in banks other than Kotak Mahindra Bank can submit post-dated EMI cheques at the nearest Kotak Mahindra Bank branch. A set of fresh post-dated cheques will be required after a pre-determined period, say one year. This facility is available only in those locations where the bank does not offer the ECS facility.


  1. What is the processing fee for Kotak Mahindra Personal Loans?

Kotak charges a processing fee at 2.5% of the loan amount. GST and other statutory levies will be additional.

  1. I want to get the repayment schedule for my personal loan. How can I access it?

You can download the repayment schedule for free by logging into your personal loan account. If you wish to get the same delivered to your address, you can place a request by calling the bank’s customer service department or writing an email. The schedule will be delivered to your registered address within 2-3 working days.

  1. I am self-employed. Can I get a personal loan from Kotak Mahindra Bank?

Yes. Kotak Mahindra Bank offers personal loans to self-employed individuals. You should be able to submit all the relevant documents such as proof of identity, address, and income so that the bank can verify the information furnished by you in the application form.

  1. Can I make part-prepayment of my personal loan?

Kotak Mahindra Bank does not offer part prepayment facility. However, if you wish, you can make full prepayment/foreclosure at a minimal charge.

  1. Can I change the EMI due date of my Kotak Mahindra Personal Loan?

Yes. Kotak Mahindra Bank offers the facility to change the installment date from the existing date to a different one. However, only 5th and 10th of a month can be used as installment dates. Such rescheduling will also attract some charges and also the PDC swap charges if you have chosen the PDC method of repayment.

  1. What is an ECS Mandate Form?

When you opt for the ECS mode of repayment, you are required to fill an ECS Mandate Form. In addition to this, the bank also requires you to draw a security cheque in its name. The cheque should be blank and updated, and it should mention at the bottom - “Not more than loan amount”. Six more cheques should also be drawn in their favor, which should indicate “Not more than three times the EMI amount”. PDC Swap charges may be applicable.

  1. How to update my address on my Kotak personal loan account?

You can get your address updated by following a simple procedure as under:

  • Write a letter to the customer care department of Kotak Mahindra Bank informing about such change in correspondence address.

  • Enclose a photocopy of your new address proof.

The bank will update the new address in 2-3 working days.

  1. What happens if I miss an EMI payment?

If you miss an EMI, overdue interest will be charged per month until you clear the entire amount. The interest is charged at a rate of 3% per month.

  1. When do I get a No Objection Certificate (NOC)?

When you have completed the loan payment entirely, you need to send a request via letter or email to Kotak Mahindra Bank to get a No Objection Certificate. The NOC will be issued 15 days after the loan has been terminated in the bank’s systems.

  1. What is the procedure to foreclose my personal loan?

Kotak Mahindra Bank does not allow prepayments in the first 12 months of the loan. For foreclosing the loan, you need to send a written request to the bank via letter or email. The bank requires 30 days intimation period for the same. Once the intimation period is over, Kotak will issue a foreclosure statement which will include the total amount (loan outstanding + prepayment charges + taxes + other statutory levies). The prepayment cheque/DD should be submitted to the bank 7 days before your EMI due date. The cheque/DD should be drawn in favor of “Kotak Mahindra Bank”. Once the bank has cleared the cheque, the loan will be terminated from the bank’s records. After this, a NOC will be issued and any remaining Post Dated Cheques will be returned to you.