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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.
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.
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.
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:
The required documents are as follows-
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.
Following are a few tips that will help you improve your CIBIL score to get a personal loan from Kotak Mahindra Bank
Don’t Display Credit Hunger
Make Responsible Use of Credit Cards
Mix Secured & Un-Secured Credits
Improve Upon Credit Worthiness
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.