Kotak Mahindra Bank Loan Against Property Interest Rate 2016

Loan Against Property

Unlock the potential in your property with Kotak Mahindra Bank. Yes, avail Loan Against Property at lower interest rates and flexible repayment options to get the required funds that will help you to fulfill various purposes such as debt consolidation, education, funding existing business, emergencies, etc. Kotak Mahindra Bank is offering you a loan against your residential or commercial at low-interest rates and higher loan amount so that your different needs can easily be fulfilled.

Read this article further to know more about Kotak Mahindra Bank Loan Against Property (LAP).

Kotak Mahindra Bank Loan Against Property (LAP)

Below is the table showing interest rates, processing fee, tenure and other important parameters of LAP:

ParticularsDetails
Interest Rates11%-12% p.a.
Loan AmountRs.10 Lakhs-3 Crores
TenureUpto 12 Years
Processing Fee1.5% of the loan amount
Foreclosure Charges4% of the outstanding amount

How to Apply?

Well, you can either visit the branch of Kotak Mahindra Bank or you can easily apply online by just visiting the website of the bank. If you visit the bank, you need to have an application form along with your KYC documents, but if you prefer to apply online, all you need to do is just fill in few details of yours, and the bank will get in touch with you soon.

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Eligibility Criteria of Kotak Mahindra Bank Loan Against Property

Self-employed individuals can easily avail the loan against property from Kotak Mahindra Bank by meeting the below eligibility criteria:

Self-employed Professionals Self-employed non-Professionals
Minimum Income:Rs.1.44 lakh (annually)Minimum Income:Rs.1.44 lakh (annually)
Minimum 21 years of ageMinimum 21 years of age
Maximum 65 years of age at the time of loan maturityMaximum 65 years of age at the time of loan maturity
Maximum 65 years of age at the time of loan maturityMaximum 65 years of age at the time of loan maturity
Firm/company should have been in operation for the last 3 yearsFirm/company should have been in operation for the last 3 years
Firm/company should be making cash profits for the last two yearsFirm/company should be making cash profits for the last two years

Now, let us understand the loan amount eligibility with the help of an example below.

Kotak Mahindra Bank Eligibility Calculator

Suppose you are working in a renowned company and earning an attractive salary of Rs. 1,00,000 per month. After deducting all your necessary monthly expenses, you are saving around 40%-50% of your income each month. Let's say, if you are able to save around 50% of your monthly income, you might be interested to know your loan against property eligibility.

In bank's point of view, you monthly saving of Rs. 50,000/- can be used to repay the EMIs of your LAP. Now, if you calculate your amount, tenure, and rate of interest, you will get to know your EMIs that you will have to pay every month so as to repay the loan amount that you are eligible for.

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Loan Amount- Rs 1 lakh
Loan Tenure-5 years
Rate of Interest-11%-12%
Your monthly EMI will be Rs 2,174-2,224

So your calculation for the loan against property would be
Rs 1 lakh x 50000/2174=Rs.22.99 lakhs and 1 lakh x 50000/2224=Rs 22.48 lakhs

So, your mortgage loan amount eligibility will range between Rs 22.48 lakhs- Rs.22.99 lakhs.

Kotak Mahindra Bank Loan Against Property EMI Calculator

When it comes to EMI (Equated Monthly Installment) calculator, it lets you know the monthly installment which you have pay to the lender for the loan against property that you have taken. At Kotak Mahindra Bank, there is flexible repayment facility available for you to decide whether you want to go for EMI based loan or an overdraft facility as per your convenience. To know your EMI per month, the calculator takes into account the principal amount, the rate of interest and the tenure of the loan. For eg., if you want to a loan against the property of Rs 20,00,000/- at the interest rate ranging between 11-12%% per annum for a tenure period of 10 years, your EMI would be Rs. 27,550-28,694.

Let's see the table below, showing the EMI, interest and total amount payable on the same loan amount at different tenures.

Below is the table showing EMI, Total Interest Outgo, and Total Amount  

Loan AmountLoan TenureInterest Rate (p.a.)EMITotal Interest OutgoTotal Amount (EMI+Interest)
Rs.20,00,000111%-12%Rs.1,76,763-1,77,698Rs. 1,21,160-1,32,371Rs.21,21,160-21,32,371
Rs.20,00,000211%-12%Rs. 93,216-94,147Rs. 2,37,176-2,59,527Rs.22,37,176-22,59,527
Rs.20,00,000311%-12%Rs. 65,477-66,429Rs. 3,57,188-3,91,430Rs.23,57,188-23,91,430
Rs.20,00,000411%-12%Rs. 51,691-52,668Rs. 4,81,170-5,28,048Rs.24,81,170-25,28,048
Rs.20,00,000511%-12%Rs. 43,485-44,489Rs. 6,09,091-6,69,334Rs.26,09,091-26,69,334
Rs.20,00,000611%-12%Rs. 38,068-39,100Rs. 7,40,907-8,15,228Rs.27,40,907-28,15,228
Rs.20,00,000711%-12%Rs. 34,245-35,305Rs. 8,76,569-9,65,659Rs.28,76,569-29,65,659
Rs.20,00,000811%-12%Rs. 31,417-32,506Rs. 10,16,018-11,20,546Rs.30,16,018-31,20,546
Rs.20,00,000911%-12%Rs. 29,252-30,368Rs. 11,59,186-12,79,794Rs.31,59,186-32,79,794
Rs.20,00,0001011%-12%Rs. 27,550-28,694Rs. 13,06,000-14,43,303Rs.33,06,000-34,43,303
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Amortization Table

YearPrincipal PaymentInterest OutgoBalance Amount
1Rs. 116,350-1,10,261Rs. 214,250-2,34,067Rs. 1,883,650-18,89,739
2Rs. 129,813-1,24,245Rs. 200,787-2,20,083Rs. 1,753,837-17,65,494
3Rs. 144,836-1,40,002Rs. 185,764-2,04,326Rs. 1,609,001-16,25,492
4Rs. 161,595-1,57,757Rs. 169,005-. 186,571Rs. 1,447,406-14,67,735
5Rs. 180,296-1,77,767Rs. 150,304-1,66,561Rs. 1,267,110-12,89,968
6Rs. 201,160-2,00,312Rs. 129,440-1,44,016Rs. 1,065,950-1,089,656
7Rs. 224,436-2,25,714Rs. 106,164-1,18,614Rs. 841,514-8,63,942
8Rs. 250,407-2,54,342
Rs. 80,193-89,986Rs. 591,107-6,09,600
9Rs. 250,407-2,86,599Rs. 51,214-57,729Rs. 311,721-323,001
10Rs. 311,971-323,286Rs. 18,884-21,379Rs. 0

Documents Required for Kotak Mahindra Bank Loan Against Property:

Before applying for a loan against property, you need to have a complete documentation, mentioned below in order to avail the loan from Kotak bank.

  • Complete Loan Application Form
  • Income Documents
  • Bank Statements
  • Address Proof
  • Age Proof
  • Property Documents

Features & Benefits of Kotak Mahindra Bank LAP

The loan against property scheme of Kotak Mahindra Bank has many attractive benefits and some of them are as follows:

  • Maximum loan up to Rs. 3 Crores
  • Flexible tenure up to 12 years
  • Low processing fees
  • Attractive interest rates