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CIBIL score for Kotak Mahindra Bank Home Loan

The feeling of having your very own home is what everyone dreams of. Imagine walking into your own home with such feeling of accomplishment and fulfilment! Kotak Mahindra Bank is your genie for this. A home loan with an affordable interest rate and long repayment tenure! What are you waiting for? Your wish of a new home is now going to be fulfilled with Kotak Mahindra Bank!

Kotak Mahindra Bank is a renowned private sector bank in India. Along with its headquarters in Mumbai, it currently has 1369 branches all over India. The main aim of Kotak Mahindra Bank has always been to provide quality and affordable products and services for their customers, thus in a way make commercial living a little easier for the common man. The bank provides a wide range of schemes and services such as investment banking, personal loan, home loan, car loan, life insurance, wealth management and so on. However, its more striking feature lies in its home loan services.

In today’s world, almost everyone needs a house of their own and the growing population and cities can make it only grow costlier. A home loan is a large amount of money borrowed by a person from the bank for various purposes related to a home. On this amount, the bank charges a certain amount of interest which the person later begins to repay.

For obtaining a home loan, CIBIL scores are of utmost importance. CIBIL Score basically determines your ability to repay loans by assessing how you manage your finances, your credit history, previous loans, debts, EMI’s, etc. At Kotak Mahindra Bank, your credit score needs to be minimum of 750 points for the bank to consider you are eligible for the loan.

Importance of CIBIL score for getting Kotak Mahindra Home Loan

A CIBIL score is a report that displays your credit worthiness to a bank. It is very important to have a good credit score, in fact you must begin maintaining an excellent credit score if you think you may want to go in for a home loan in future.

A home loan usually means requiring a large sum of money, for which proving you are worthy to receive a large amount as loan from the bank is significant.

A credit score of 750 points and above is a mandate for acquiring a home loan from Kotak Mahindra Bank. If you have a low credit score, then you may not be eligible for a home loan. This is because a low credit score portrays that your past loans and repayment of the same have not been efficiently done. However, in such cases, if you are approved of the loan then the bank charges a higher rate of interest. This is again troublesome as it adds more monetary stress on the customer. Therefore, it is advisable to keep a good credit score.

A higher credit score will give an immediate insight to the bank that you are capable of repaying loan based on your past and current history with debts. The process will take place faster.

Overall, a good CIBIL score is necessary to obtain a loan from Kotak Mahindra Bank and it will also make the entire process simpler.

Kotak Mahindra Bank Home Loan information

There are various distinctly thoughtful features that make Kotak Mahindra Bank home loan so attractive and one of a kind. Some noteworthy features are as follows:

  • No processing fees: Kotak bank offers zero processing fees (online) and offline it charges 1. 25% of the entire loan amount.
  • Door-step service: Kotak Bank takes a step forward to make this process easier and more convenient by sending their executives to your house to give you all the information you require and help your home loan application get processed.
  • Simple documentation: Minimal documents are required for applying for a loan with Kotak Bank. The documents required are identification proof, residence proof, latest bank statements, income proof, signature, age proof and property documents wherever applicable.
  • Affordable interest rates: They offer an amazing interest rates starting at 8.90%.
  • Quick process: Once your loan is approved the bank carries further the rest of the process quickly and the loan amount will be disbursed within a very short period of time.
  • Tenure: up to 20 years. With the introduction of the Credit-Linked Subsidy System (CLSS) under the Pradhan Mantri Awas Yojna (PMAY), Kotak Mahindra Bank has started offering subsidy for home loans to eligible people from the weaker sections of the society or low-income groups. This proves that Kotak Bank is stepping ahead along with the intention of a better, safer and happier society for all.

An additional benefit is that Kotak Mahindra Bank offers you exciting insurance schemes too.

Probable Reasons for a Home Loan Rejection at Kotak Mahindra Bank

Sometimes needing a home loan can be an urgent requirement, hence you need to keep few things in mind before applying for one.

Below are some pointers on why your home loan could be rejected:

  • Age: To apply for a loan at Kotak Mahindra Bank, the age of the applicant must be between 21 to 65 years.
  • Invalid documents: Any kind of fraud or false information will immediately lead to a home loan rejection. All the information provided by the applicant on documents is cross-check by the bank, if true, only then they move further with the home loan process.
  • Low CIBIL score: A low CIBIL score is a major drawback and a less than minimum score can straight away lead to rejection of home loan. A credit score determines the credit-worthiness of the applicant. Low credit points give an understanding to the bank that the applicant has failed to manage his finances and thus he is not worthy of a home loan.
  • Low income: A low income will not suffice when it comes to repaying the loan. Hence, for a home loan the higher the applicant’s income, the higher his chances of getting a home loan.
  • Less than required qualifications and work-experience: Educational qualifications and work-experience are very important factors as they determine the applicant’s knowledge and stability.
  • No savings: Having some amount of savings is beneficial as this shows to the bank that the applicant’s income is more than enough as he has managed his expenses and yet had money to save aside. Similarly, having no savings portrays to the bank that the applicant will not be able to repay the loan amount. Hence, this will lead to rejection.

Tips for improving CIBIL score for Kotak Mahindra Home loan

  • Clear off old debts.
  • Check your credit score as sometimes there can be administrative errors that cause a decline in the scores.
  • Keep old credit cards, longevity and stability is proved.
  • Apply for fewer loans.
  • Mix and match of secured and unsecured loans.

FAQs on Kotak Mahindra Bank Home Loan

What if I have a low CIBIL score, will Kotak Mahindra Bank still give me a home loan?

No. A minimum of 750 points is required.

Does skipping my Kotak Bank home loan payment affect my CIBIL score?

Yes. Your CIBIL score is an amalgamation of your financial history. Skipping a loan payment will for sure reduce your credit-worthiness.

Had a loan settlement with Kotak Mahindra Bank, will this affect my CIBIL score?

Yes. A loan settlement with the bank simply means that you were unable to repay your debt. To the CIBIL bureau this is a drawback, and this will reduce your score.

What is the Eligibility criteria for getting a Kotak Mahindra Home Loan?

Age: Minimum 21 and maximum 60 years old for salaried employees. Minimum 21 and maximum 65 years old for self-employed individuals.
Employment: Stability in profession for at least 2-3years. Income: More than average. At least above 25,000 Rs. A high income will be a surety to the bank that the applicant can afford to pay his loan back. CIBIL score: 750 points and above. Higher the CIBIL score, the more likely are you to receive a house loan.

Dependents: The number of dependants the applicant has. Qualification: High qualification is more favourable.

Can I get more than 3 Kotak Mahindra Bank home loans if I have a good CIBIL score?

Yes, you can.

Can I apply with a co-applicant for Kotak Mahindra Bank home loan with a co-applicant?

Yes, your co-applicant can be a spouse, child or parent too. It’s a great way to distribute the EMI. However, the co-applicant cannot be the co-owner of the property.

What are the Home Loan Rates of Kotak Mahindra Bank?

  • Interest rate- Starting at 8. 90% based on 6 months MLCR, for loan amount up to 25 Lakh until above Rs. 3 Crore.

The interest rate you will be charged also depends upon your loan amount, your salary, type of loan you’ve opted for and if you’re an existing bank customer.

The bank has special rates for women borrowers.

  • Processing fee- 1. 25% of the total loan amount + GST (for offline application).

No prepayment and foreclosure charges in case of floating rate loans.