An Overview on Kotak Mahindra Bank Home Loan Interest Rates, Eligibility

Kotak Mahindra Bank is constantly striving to gain a sizeable share of India’s home finance space. It is this endeavour that has made the bank customized its offers to tap into the emerging needs of the people wanting a home of their own. The impressive quantum of finance aided with affordable interest rates means the bank remains in the forefront at the home finance space. So, if you are mulling a Kotak Mahindra Bank Home Loan, you can read various aspects of the same in this article.

How Much Home Loan Can You Expect from Kotak Mahindra Bank?

Kotak disburses home loans as per the cost of the property you want to buy. The loan can be equivalent to 75%-80% of the property cost, helping you buy a home with ease. The remaining 20%-25% of the cost has to be borne by you in the form of down payment. As you would know, a home loan needs discipline and years of savings to make it a reality. Keeping this in mind, you must have saved a substantial amount of money. If your savings are more than 20%-25% of the property cost, you can use the extra to reduce the quantum of the loan and the interest payment.

What is Kotak Mahindra Bank Home Loan Interest Rate?

The interest rates offered would vary across the quantum of home loan applied. Loans up to ₹30 lakhs can be given at 8.95% and 9.10% to salaried/self-employed professional and self-employed non-professional, respectively. Loan applications made for more than ₹30 lakhs and up to ₹75 lakhs can be responded with an interest rate of 9.10% (salaried/self-employed professional) and 9.25% (self-employed non-professional). Applications made for more than ₹75 lakhs come with 9.15% (salaried/self-employed professional) and 9.30% (self-employed non-professional). If you apply online, there won’t be any processing fee, which otherwise can be up to 1.25% of the loan amount. The documentation charges can be levied at 0.50% of the loan amount.

Shall You Calculate Kotak Mahindra Bank Home Loan EMI in Advance?

Yes, you should, if you want to be clear of the uncertainties in the future. The repayment estimates can be easily calculated using the Kotak Mahindra Bank Home Loan EMI Calculator. You just need to enter the tenure, interest rate and the amount of loan at their respective spaces to compute the estimated EMI, an abbreviated form of the Equated Monthly Installment. The EMI constitutes portions of both interest and principal towards a home loan. So, you could get to know the total interest you are likely to pay to Kotak over the course of a loan.

Importance of Loan Tenure

Not only you need to think on interest rates but also the tenure to cut down the interest payment from your end. The bank can give you 30 years to pay off the loan. But that may not be ideal as far as your financial health is concerned. A very long tenure can bring down the monthly installment amount. But the overall interest payment can be big enough to ponder upon. A very short tenure, on the other hand, can raise the installment amount extremely high to make timely payment a tough thing to execute. That’s why you need to choose the tenure that results in keeping the monthly installment affordable while also reducing the outflow of interest over time.

Eligibility

• Both salaried and self-employed are eligible to apply for a home loan
• While the salaried must be between 18 and 60 years of age, self-employed aged between 18 and 65 years can apply

The minimum income required amounts to ₹2,40,000 and ₹1,80,000 for salaried and self-employed, respectively