4 Tips to get the best Personal Loan Interest Rates - Kotak Bank

21 MAY, 2020

Personal loans are one of the most viable ways to tackle your sudden financial requirements. The amount secured through this kind of loan can be used to serve various purposes. This includes paying educational fees, wedding expenses, going on a holiday and even covering medical emergencies. It helps you make urgent payments with much ease. Personal loans are also disbursed at a much faster rate and you do not have to be hassled by excessive documentation. It thus comes as no surprise that they are the most sought-after loans in the financial market. However, a personal loan is only beneficial when you seek one at considerable interest rates. Personal loans with attractive interest rates will let you enjoy the big benefit of repayment-ease.

Here are 4 tips that you can employ to get the best personal loan interest rates:

Build a good credit score - Before you apply for a personal loan, ensure that you build a strong credit report. Having an excellent credit score will increase your chances of availing a personal loan from most banks and hence will provide you with better options. It also gives you an upper hand when making negotiations with the bank. Thus, you should put in greater effort into building a clear credit history.

Take advantage of offers – Banks commonly run seasonal offers from time to time. These offers bring you personal loan interest rates that are much lower than those that are regularly offered. However, these offers can only be availed for limited-periods. You must keep an eye out when these are being run or subscribe to lender notifications.

Maintain a good relationship with the lender - A lender is likely to offer you a much better interest rate when you are a loyal customer. Based on your relationship with the bank, you may be offered special customer discounts. This includes better interest rates with the aim to retain you as a customer. Additionally, the bank is assured of your repayment behavior, increasing your chances of availing the loan without much hassle.

Prove professional credibility – Banks believe that an employee of a well-reputed company and one who draws a significant salary makes for a great loan-candidate. Thus, if you work for a reputed organization, you can use this factor to your advantage. Prove to the bank that you have a stable income and you are likely to be offered a more competitive interest rate on the personal loan.

 

 

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

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Frequently Asked Questions

What can a personal loan be used for?

Personal Loan can help you meet unexpected expenses such as wedding expenditure, school or college fees, dream vacations, home renovation projects or even for the purchase of consumer durables. 

 

Applying for a personal loan is a lot easier, quick, and convenient with Kotak Mahindra Bank.Click https://www.kotak.com/en/personal-banking/loans/personal-loan.html to apply for the same. 

 

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Do I need to provide any security or collateral to obtain a personal loan?

No, you do not have to provide any security or collateral to obtain a personal loan. Personal loan is a type of unsecured loan. This essentially means that it is not backed by the guarantee of collateral. You are not burdened by the need to generate collateral like gold, property or shares, as with other types of loans. As there is no security to assure loan repayment, the bank will focus on the income and financial stability of the applicant. 

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What are the benefits of taking a personal loan with Kotak?

There are several benefits of availing a personal loan from Kotak bank. Some of the most notable benefits include:

  • prepaymentInstant approval – The bank approves the loan at a quick rate and this makes the process much easier to serve different financial purposes.
  • Easy Documentation – It comes with minimal documentation requirements to help you save time and cater to your emergency financial needs without any hassle.
  • Versatile usage – The personal loan can be used to fulfil many purposes. From funding a dream wedding to serving a medical emergency, it can be used to serve different planned and unplanned financial needs.
  • Attractive interest rate – The personal loan is made more convenient with an attractive rate of interest starting at 10.75 p.a.
  • Part Prepayment facility – In case of excess funds/financial liquidity , you can reduce your loan burden with part prepayment

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What is the eligibility criteria to apply for a personal loan?

The eligibility to avail Personal loan is as follows :

  • All Indian residents who are employees of either MNCs, Public and Private limited companies with a minimum age of 21 years and maximum age of 58 years are eligible for a personal loan.
  • Other Personal loan eligibility criteria :
    • A net Salary of Rs.25,000/- per month for Corp Sal (Salary with Kotak) , A net Salary of Rs.30,000/- per month for Non-Corp Sal (Salary with other bank) , A net Salary of Rs.20,000/- per month for Kotak Employee.
    • Minimum educational qualification - Graduate
    • Years in city - Minimum 1 year
    • Total work experience - Minimum 1 years

You can apply for a personal loan by following the below steps:

On Mobile banking

  • Go to Apply Now
  • Personal Loan ( If eligible)

On Net Banking

  • Go to Banking
  • Apply for Preapproved Personal Loan (If eligible)

Or

By simply clicking https://rcasprod.kotak.com/personal-loan?source=website&banner=ProductPageApplyonlineTab

Please Note: The same would be subject to approval. The time frame for the personal loan is 10 working days if approved.

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What is the best way to apply for a personal loan?

You can apply for a personal loan by following the below steps:

 

On Mobile banking

  • Go to Apply Now
  • Personal Loan ( If eligible)

On Net Banking

  • Go to Banking
  • Apply for Preapproved Personal Loan (If eligible)

Or

By simply clicking https://rcasprod.kotak.com/personal-loan?source=website&banner=ProductPageApplyonlineTab.

Please Note: The same would be subject to approval. The time frame for the personal loan is 10 working days if approved.

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