Kotak Mahindra Bank Home Loan Interest Rate

1.  Kotak Housing Loan: This home loan scheme is specially designed for you to purchase/construct/renovate your home/flat.

Loan Amount: Up to 90% of the property’s value

Tenure: Up to 20 years

2.  Home Improvement Loan: You can apply for this home loan scheme if you wish to make improvements to enhance the overall look of your existing house.

Loan Amount: Up to 90% of the property’s value

Tenure: Up to 15 years

3.  NRI Home Loan: NRI Home Loan scheme can be applied by the NRI applicants holding Indian passports if they want to purchase/construct/renovate their home/flat.

Loan Amount:  Up to 80% of improvement cost

Tenure: Up to 15 years

4.  NRI Home Improvement Loan: If NRIs wish to improve their existing home and make it look more beautiful, they can apply for this home loan scheme.

Loan Amount:  Up to 80% of improvement cost

Tenure: Up to 10 years

5.  Home Loan Balance Transfer: This home loan scheme allows you to transfer your existing home loan to Kotak Mahindra Bank at lower interest rates.

Kotak Mahindra Bank Home Loan Processing Fee

A processing fee is a non-refundable fee that the banks ask the borrower to process his home loan application. The processing fee of Kotak Mahindra Bank Home Loan starts from 0.50% and goes up to 1% of loan amount + statutory dues.

Kotak Mahindra Bank Home Loan Balance Transfer

Kotak Mahindra Bank lets you transfer your existing home loan from any bank or NBFC to Kotak Mahindra bank and avail of lower interest rates and lower EMIs. Also, the home loan balance transfer facility of Kotak Mahindra Bank comes packed with various benefits including a top-up loan facility on your current home loan.

Factors Affecting Kotak Mahindra Bank Home Loan Interest Rate

The factors that impact the interest rate of Kotak Mahindra Bank home loan are:

1.  Credit Score: A credit score is a numeric representation of your repayment history and is one of the most important factors considered by the lenders while offering you a home loan.

If you have a healthy credit score of 750 or above, the lenders will believe that you have paid your previous loans or credit card EMIs on time and will offer you a home loan at a competitive interest rate. However, if your credit score is poor (below 750), the lender may hesitate to offer a home loan or may offer it to you at a high interest rate.

2.  Location and Value of the House: The location of your house also plays an important part in determining your home loan eligibility. A house with excellent connectivity and good amenities in proximity like grocery stores, malls, hospitals, schools, etc. is more likely to get a higher value as compared to a house with poor connectivity and amenities.

The same logic gets applied to the age of the property. If you are buying a new property in an upcoming locality, you will get a home loan at a lower interest rate and if the property is old, you may get a home loan at a higher interest rate.

3.  Nature of Work: Your employment status is also important while evaluating your home loan eligibility. If you are a salaried professional and work with an MNC or a reputed private sector firm, you are considered more reliable by the home loan borrower. Similarly, if you are a self-employed individual having a stable business for more than 2 to 3 years, the home loan lenders may offer you a home loan at reasonable terms and conditions.

4.  Age of the Borrower: If you have reached close to the retirement age or will be there in a few years, the bank may not approve your home loan application as the lender will not be able to recover the money once you get retired. However, in this case, you can either apply for a lower home loan amount or can apply with a co-applicant.

5.  LTV (Loan to Value) Ratio: Most of the lenders also consider the amount you pay as a down payment for the home before sanctioning you a home loan. Therefore, if you manage to make at least 20% as a down payment, the lenders will offer you a home loan at a lower interest rate.