5 Tips to choose the right Personal Loan for you - Kotak Bank

21 MAY, 2020

Personal loan is an important and flexible financial tool that can come to your aid in times of financial uncertainty. Irrespective of what your requirements are, a personal loan proves to be a convenient way to fulfil all your future plans. Whether it is, debt consolidation, funding a wedding or serving a medical emergency, this kind of loan can be very useful.

It is essential to make the right choice when picking a personal loan. Here are some aspects that you must follow to help you find a suitable personal loan.

Compare the interest rates – The rate of interest on your personal loan will essentially determine your monthly EMI payouts. It is best to compare the rate of interest before putting a mark against any personal loan offering. A lower interest rate will help in covering your repayment much faster. However, ensure that you do not hold a low interest rate as the only driving factor when choosing a personal loan.

Find an affordable EMI – When taking a personal loan, you must be sure of being able to afford the loan repayment. It is essential to be able to pay the installments on time or you could incur penalties. Experts advise the use of a personal loan EMI calculator. The calculator allows you to factor in different aspects such as the loan tenure, rate of interest, processing fees and more to give you an estimate EMI cost.

Check eligibility – A personal loan, like most other loans requires you to meet the eligibility criteria. Understanding the personal loan eligibility requirements well help in availing the right loan and speed up the process. Typically, banks require you to have a minimum income, minimum educational qualification of being a graduate, and minimum work experience of 1 year and more.

Read the fine print – It is easy to get through the loan process without noting down the fine print. However, not reading the documents carefully can cause a disruption in the future. It is important to read the terms and conditions carefully. They must be used to support your decision when taking a personal loan. Additionally, any doubt must be immediately cleared out with the lender.

Note the fees and charges – There are certain fees and charges associated with a personal loan. These fees include processing fees, late payment fees, part pre-payment fees, penalty on cheque bounce and more. Understand the associated personal loan charges well when picking a personal loan.

Additional Read: 4 reasons to let a personal loan take care of your big purchases              

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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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