Important things to know about Personal Loan Closing Procedure - Kotak Bank

21 MAY, 2020

Financial emergencies can approach at any time. This is when one can turn to a personal loan for immediate help. The unsecured loan does not come with an end-use criterion and can be used to fulfil different purposes. Whether it is funding a holiday, buying a high-end gadget, renovating your home or even serving wedding costs, a personal loan can be extremely useful.

If you do have a personal loan as part of your financial debts, it is likely that managing you loan payment and closure is at the top of your focus. Making timely monthly payments and closing your loan as per the loan tenure or before will bring your great financial relief:

Here are some ways to close your personal loan:

Personal loans can be closed through a variety of repayment methods. Here are some ways that you can use to undertake the same:

Regular closure – This kind of closure involves closing the loan in the period as mentioned in the loan agreement. You must pay your loan EMIs at regular intervals and the loan is closed at the end of the tenure period. The process is straight forward and takes place as per the mentioned terms and conditions in the loan agreement.

Pre-closure – As the name suggests, a pre-closure means that you close the loan before the end of the tenure. This way, you save a lot on your EMIs. This method can be used if you think that you are left with excess money in your budget and can pay off the loan altogether. You may be allowed to pre-close the loan only after completing the lock-in period as stated by the bank. However, you must note that there may be foreclose charge levied on the same.

Bad loan closure – Bad loan closure is used when the borrower defaults in loan repayments. It is offered in times of financial loss or bankruptcy. However, this kind of closure can have a negative impact on your credit report.

Steps involved in closing a personal loan

Closing a personal loan is a fairly simple process. You must connect with your bank representatives and work on ways to complete your payments. The bank will return to you all the original documents that were submitted at the time of the loan application. Ensure that you contact the bank and follow the process and collect a No Objection Certificate (NOC) stating the payment of the loan in full at the time of the personal loan closure.

 

 

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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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