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CIBIL Score for Kotak Bank Personal Loan

There are many factors that affect the applicant's’ eligibility for a Kotak bank personal loan. Banks prefer to give loans to those who are capable of repaying the loan and who do not default on making the payments. Some factors that affect an applicant’s personal loan eligibility are -

  • Place of Residence: The personal loans are easily sanctioned to those living in metro cities. The preference is also given to those who have their own home as compared to those living in a rented flat, because those who have their own home will not have an additional financial burden of paying the rent. He will also have a higher disposable income.

  • Effective Monthly Earnings: The level of income indicates how much you are capable of repaying the loans and paying the EMIs on time. This affects the total loan amount that will be sanctioned to you. If your income is higher, the chances of you getting a bigger amount loan is higher.

  • Borrower’s Age: The age of the applicant is another factor that the bank will consider before offering you a loan. If you are too young, the banks will be hesitant to give you a loan as there is a higher chance of the applicant shifting the job.

  • Employment Nature: The self- employed stand a lower chance of getting a loan than compared to salaried individual and salaried professionals. Self-employed have inconsistent income when compared to salaried individuals.

  • History of Employment: An applicant who has stayed in a company for a longer period will get higher preference. It shows stability of income flow and the bank can be assured that the applicant is having constant cash flow to pay for the EMIs.

Importance of CIBIL score for getting Kotak bank personal loan

When an applicant applies for a loan with Kotak Mahindra Bank, the bank runs a credit check on the applicant and reviews his credit report. If the CIBIL Score is above 750, the bank will further consider your application and goes through your credit report. The bank will take into consideration the loans that you have taken previously and closed. The bank will check the credit payment history to check how efficiently you have repaid the loan. It also considers the types of loans that the applicant has taken and checks if he has a good mix of both secured and unsecured loans.

If you have agreed to settle for a loan due to certain financial constraints, then it gets recorded in the credit report and stays in the report for 6 years. The settlement of the loan is considered as a negative remark and hence, Kotak Mahindra Bank might not offer you a personal loan as they might be unsure about your capacity to repay the loan.

Kotak Bank Personal Loan Information

Quick Approval

When selecting Kotak Mahindra Bank for a personal loan you may expect faster approvals and disbursal in your bank, considering the online facility. Follow the simple procedure.

  • Fill an online form and check your Personal Loan eligibility online.
  • Once approved, a Kotak Bank agent will contact you and gather all the required loan documents.

Eligible Amount INR 15 Lakh:

  • One is eligible for an online personal loan from Kotak Mahindra of up to Rs. 15 lakh. This is offered at good interest rates too. Also, you can avail highly flexible repayment options.

Least Paperwork:

  • Kotak Mahindra Bank requires minimum paperwork.
  • This means quick approvals of personal loans.
  • This denotes lesser hassles for you and a happy customer for Kotak.

Eligiblity Criteria For Getting Kotak Bank Personal Loan

Indian residents employed by MNCs/ Public and Private Ltd. enterprises and of minimum 21 years of age and max 58 years of age eligible for a Kotak Mahindra personal loan.

Other Personal loan eligibility criteria:

  • Income Net monthly salary of Rs. 20,000/-
  • Minimum educational qualification - Graduate
  • Years in city - Minimum 1 year
  • Total work experience - Minimum 1 years

CHARGES

  • Interest Rate: The interest rate is 10.99% to 24%
  • Loan Processing Charges: Max 2.5% of the loan amount+ GST and other applicable statutory levies.
  • Stamping: Levies according to the Stamp Act of the state in question.
  • Appraisal Credit Levy: Maximum 5% of the principal. Not more than INR 7500.
  • Interest on Overdue: 3% per month which goes through monthly compound on amount due and not payed ‘Amount falling Due date’ and until date of payment.
  • Collection Charge: This is 30% of cheque or instrument dishonour charges+ overdue interest.
  • Dishonour Charges Per Instance: Rs. 750
  • Swap Charges: Rs. 500 per Swap. This is with applicable GST and statutory charges.
  • Prepayment Interest / Foreclosure Charges: The Lock in period is 1 year. Post 1 year, there is a 5% foreclosure charge and GST on outstanding amount.
  • Issue of Duplicate NOC: INR 500 and GST + applicable statutory charges.
  • Certifying No Due: Rs. 500 and GST together with other applicable charges.
  • Charges for providing copy of the credit information report: Rs. 50 and GST plus applicable charges.
  • Levies when customer demands copies of records on his transactions: Once in a year with no levies. After that we are required to pay INR 250 per request together with GST other charges.

Required Documents

The required documents are as follows-

  • Application Form
  • 1 Photograph
  • Identity Proof
  • Residence Proof
  • Age Proof
  • Signature Proof
  • Ownership Proof
  • Income Details
  • Bank Account Statements

Probable Reasons for Kotak Mahindra Personal Loan Rejection

  • Your credit history is not good: Be sure to pay all your previous EMIs on time and that you do not miss out on any deadlines. Find ways to increase your CIBIL score and don’t let the banks offer you any settlement on loans.

  • You are paying high EMI’s on existing loans: If you are able to refinance your existing loan for a lower interest rate or extend the tenure of the existing loan, you can reduce the EMIs each month and ensure that you do not miss out on payments and it becomes affordable for you to pay the EMIs on time.

  • Avoiding Prepayment: If you have lesser EMIs left on any loan, then prepay them and close the loan. The applicant will then have a higher disposable income to show to the bank and hence, the chances of the applicant getting the loan is higher.

  • Not having a correct mix of secured and unsecured credits: Have a mix of both the types of loan. The secured loans are favourably looked at and it shows the bank that you do have managed to attain some assets over the period of time and not just built credit.

  • You applied for many loans: If you are in need of a loan, then do not go around applying at all banks and wait to get lucky. All the banks will run a credit check and it gets recorded in your credit report. This will also look bad on your report and affects your credit score.

Tips for improving CIBIL score to get Kotak Mahindra Personal Loan

Following are a few tips that will help you improve your CIBIL score to get a personal loan from Kotak Mahindra Bank

  • Timely Payments

    • The most important point for Healthy CIBIL Score is timely payments.
    • Going for the ECS facility is a good idea for payment of Home Loan EMI’s, Credit Card Bills etc. on time.
    • Payments have to be made within 5 working days before it becomes due.
    • When using cheque for payment, remember that it is better if you drop the cheque 10 days prior to the due date. This is because the cheque will take a while before it is cleared. Remember to note holidays scheduled between due date and cheque drop date.
  • Don’t Display Credit Hunger

    • Many credit cards show credit hungry behaviour of the individual.
    • Missing payment due date on many occasions as you tend to forgot due date of few credit cards.
    • It is advisable to keep only 2-3 credit cards. Also, don’t keep changing credit card every now & then.
    • Please remember, older credit card with regular payment record helps you improve CIBIL score rather new credit card.
  • Make Responsible Use of Credit Cards

    • 95% of population’s CIBIL score is adversely impacted due to Credit Cards. If used irresponsibly, then credit card could be the biggest curse.
    • It is best if you utilise only maximum 30%-40% of monthly credit limit. Any excess usage might impact CIBIL score. When more credit usage is required, use a second card and re-plan your payments accordingly. Basically, keep both card utility within 40% of limit.
    • If you are planning to make big purchase, then you can request bank to increase your credit limit. The bank will be glad to raise your credit limit if you have a good track history.
  • Mix Secured & Un-Secured Credits

    • Remember that secured loans such as a home loans are good for your CIBIL score owing to their nature as long term appreciating asset. Compared to this, un-secured loan with depreciating value such as a bike credit, or credit card debt etc. reflect badly on your CIBIL Score.
    • Go for the correct balance of secured and un-secured credit line. Aim for this: - Credit Portfolio- 80% Secured, 20% Un-secured.
  • Improve Upon Credit Worthiness

    • Remember that regularity in payments reflects as credibility on your CIBIL Score.
    • This means that a worthy history of credit repayment is the credit worthiness itself. A score of 750 is where credit worthiness begins and peaks at 900.

FAQs on CIBIL Score for Kotak Bank Personal Loan

What are the Personal loan rates of Kotak Mahinda Bank?

The personal loan rates of Kotak Mahindra Bank are 10.99% to 24%.

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

Having a poor credit rating is going to hurt your personal loan eligibility with Kotak Mahindra bank.

Does skipping Kotak Mahindra personal loan payment affect my CIBIL score?

Yes. It negatively impacts your CIBIL score.

I had a loan settlement with Kotak Mahindra bank, will it affect my CIBIL score?

It will negatively affect your CIBIL score. Remember that the settlement of loan will reflect as a negative sign. It would mean that your frustrated the bank by taking a loan, utilising it and then not making timely repayments.

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

Yes, you can get more than 3 Kotak Mahindra back personal loans if you have a good CIBIL Score.

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