Step by Step Guide to Understand the Personal Loan Process - Kotak Bank

21 MAY, 2020

A personal loan has emerged as a popular financial product in the country. It makes for a good resort when you need quick financial help to serve any purpose. From serving medical emergencies to fulfilling house renovation finances, this loan can be used for several purposes. If you are planning on applying for a personal loan, you may be concerned about the several steps involved in getting one. However, fret not as the process is very simple. All you have to do is follow the right steps.

Here is a step by step guide that helps you in the personal loan process:

Compare the available options – You do not take the first loan that you are offered. Compare the different offerings using several parameters such as the available loan amount, term or duration, processing, and other related fees, rate of interest, the total amount for repayment and terms and conditions.

Note the eligibility criteria – It is important to know whether you qualify for a loan. The lender will need you to meet the eligibility criteria that include employment status, credit score, income, residential status, age and more. Ensuring your eligibility before the application will prevent you from wasting time on a loan process that you do not qualify for.

Begin application – The application for a personal loan can be either done online or through the bank branch. You have to generate informative documents such as a personal identity, proof of income, tax identification number and history and address proof. Having the needed documents in place with your information readily available will help in smoothly making it through the application process.

Await loan approval –A loan is approved only after you have submitted all the sufficient information with the lender. You will then have to sign a contract that contains all the important details of your agreement such as the amount to be paid back, rate of interest and more.

Receive the loan funds – With a personal loan, the funds are handed over to you through a bank account that you provide to the lender. Many lenders also offer quick loan disbursal to pre-approved customers. You must then work on your plan to make repayments within the loan tenure period.

 

 

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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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