Personal Loan Processing Fee: Up to 5% of Loan Amount

Home

Services

Products

Help

Get App

Apply Now

Personal Loan Interest Rates and Charges by Kotak Mahindra Bank

Apply Now

Personal Loan Processing Fees and Charges

While Personal Loans offer flexible solutions by providing quick access to capital, there are fees and charges that come along with them. These include processing fees, prepayment penalties, and late payment fees. Responsible borrowers must be aware of them before applying for a loan.

Charge type	Applicable amount
Personal loan interest rate (Fixed)	Starting from 10.99% p.a.
Loan processing fees (Non Refundable)	Up to 5% of the final loan amount plus taxes.
Loan processing fees (Non Refundable)	Will be deducted from the loan amount at the time of disbursal.
Stamp Duty Charges	As per the respective State’s Stamp Act
Penal charges on Overdue EMI	Amounts standing unpaid on respective due dates shall attract penal charge at 8% per annum (to be charged for actual no. of days) on overdue amount plus applicable taxes.
EMI dishonour/Bounce charges	INR 750/- per instance
Swap charges, i.e. charges for change in repayment mode, repayment instrument or EMI date	INR 500/- plus taxes per instance
Lock-in period	No lock-in period for Kotak Personal loans post payment of first EMI.
Foreclosure charges	Upto 3 years - 4% + taxes on outstanding principal
Foreclosure charges	After 3 years - 2% + taxes on outstanding principal
Part pre-payment charges	For loans disbursed on or before - 1st February 2020 - Part Pre payment is not allowed
	For loans disbursed after 1st February 2020
	Post completion of 12 months -Part-Prepayment is allowed up to 20% of Principal loan outstanding.
	It is allowed once a year.
	Charge per instance of part payment is INR 500 plus taxes
Physical SOA or Amortization schedule	Once in a year- No charge.
Physical SOA or Amortization schedule	Post that - INR 200 plus taxes per request
Legal charges	at actuals
Disclaimer: The above charges are indicative and subject to change basis agreement between bank and the borrower. The fees and charges are subject to revision by Kotak Mahindra Bank from time to time. If there are any changes in the fees and charges structure, the same will be updated on the Bank’s website.

Annual Percentage Rate offered to Customer during the Period from 1^st April 2024 to 30^thJune 2024

Q1FY25	IRR (Internal rate return)	APR (Annual Percentage Rate)
Average	16.42%	22.35%

What are the Processing Fees and Charges for Personal Loans?

A Personal Loan processing fee or Personal Loan charge is levied as a percentage of the loan amount to cover the cost of sanctioning a loan. This is one of the most basic fees charged while taking out a loan. These charges vary depending on the amount you withdraw, the financial institution you choose, the loan term and few others.

Typical Fees and Charges on Personal Loans

Other than processing fees, Personal Loans come with other charges that borrowers should be aware of. This will help them manage their finances effectively and avoid unnecessary expenses. Once the documents required for a Personal Loan are submitted, they will be processed and disbursed. A few common fees associated with Personal Loans include:

Loan Processing Fee: Loan processing fees, non-refundable, are up to 5% of the final loan amount plus taxes. This amount is deducted from the loan disbursement, not requiring a separate payment. It covers administrative costs associated with processing the loan application.
Prepayment Charges: For loans disbursed on or before - 1st February 2020 - Part Pre payment is not allowed. For loans disbursed after 1st February 2020. Post completion of 12 months -Part-Prepayment is allowed up to 20% of Principal loan outstanding. It is allowed once a year. Charge per instance of part payment is INR 500 plus taxes
Repayment Mode Swap Charges: These charges amount to ₹500 + Taxes per transaction. This fee applies each time there is a change in the repayment mode.
EMI Bounce Charges: These charges stand at ₹750 + Taxes per occurrence. This fee is applicable each time an Equated Monthly Installment (EMI) payment fails or bounces.

A Personal Loan Near You

Choosing the right financial institution makes securing a Personal Loan a lot easier. Search for the nearest Kotak Mahindra Bank to apply for a Personal Loan.

Don’t forget these factors while selecting a Personal Loan:

Check the loan amount
Compare the interest rate
Read the terms and conditions
Check the processing fee

Personal Loan Overdraft

Personal loan overdraft is a credit facility offered by Kotak Mahindra Bank which allows you to overdraw your account balance for meeting your financial needs. This loan is allowed up to a specified limit depending on your account balance.

Charges specific to Personal Loan Overdraft facility	Applicable amount
Interest rate	13.50% per annum onwards
Processing fees	Up to 5% of the final loan amount plus taxes
Penal Charges on Overdue/Overutilised amount	Amounts standing unpaid on respective due dates shall attract penal charge at 8% per annum (to be charged for actual no. of days) on overdue amount plus applicable taxes not exceeding Rs. 5 lac (plus taxes) in a calendar month per contract/loan.
Lock-in Period	12 months
Foreclosure Charges (post lock-in period)	Nil
Foreclosure Charges (in case lock-in period is not served)	4.5% + taxes on current sanction limit
Non-utilization charges	If average utilization of facility limits for a quarter is below 60% of sanctioned limits, Commitment charges of Rs. 5.50 per day per lac of unutilized limits (or a part thereof) + applicable taxes.
Repayment account swap charges	Rs.500 + taxes per swap
Account statement charges	Physical account statement: Rs.200 + taxes per instance (can be availed from any Kotak branch)
Account statement charges	Please note that account statement can be downloaded for free via net banking/mobile banking.
Bounce/dishonour charges	Rs.750 + taxes per instance
Disclaimer
The above charges are indicative and subject to change basis agreement between bank and the borrower. The fees and charges are subject to revision by Kotak Mahindra Bank from time to time. If there are any changes in the fees and charges structure, the same will be updated on the Bank’s website.

Annual Percentage Rate offered to Customers for Personal Loan Overdraft during the Period from 1^st April 2024 to 30^thJune 2024

Q1FY25	IRR (Internal rate return)	APR (Annual Percentage Rate)
Average	13.38%	13.60%

Get Personal Loan near your locations

Personal Loan in Mumbai

Personal Loan in Bangalore

Personal Loan in Chennai

Personal Loan in Hyderabad

Personal Loan in Delhi

Personal Loan in Pune

Personal Loan in Ahmedabad

Personal Loan in Kolkata

Personal Loan in Jaipur

Personal Loan in Coimbatore

Personal Loan in Surat

Personal Loan in Kerala

Personal Loan in Nagpur

Personal Loan in Indore

Get Personal Loan for Different Budgets

Personal Loan for ₹ 50,000

Personal Loan for ₹ 1 Lakh

Personal Loan for ₹ 2 Lakhs

Personal Loan for ₹ 3 Lakhs

Personal Loan for ₹ 4 Lakhs

Personal Loan for ₹ 5 Lakhs

Personal Loan for ₹ 10 Lakhs

Personal Loan for ₹ 15 Lakhs

Personal Loan for ₹ 20 Lakhs

Personal Loan for ₹ 25 Lakhs

Frequently Asked Questions

When to take a Personal Loan?

The purpose of borrowing a Personal Loan is different for different people. A Personal Loan is a good option if you are short of money to pay your bills or want to reconstruct your house. After researching the various options available, select the best one for you.

Is there a processing fee for Personal Loans?

Yes, Personal Loans have processing fees. The processing fee is charged to cover the cost of giving a loan. This charge may vary from one financial institution to another. While choosing a Personal Loan, you must ensure it is reasonable.

Can I pay EMI after the due date?

Most financial institutions allow customers to make EMI payments after the due date. However, a penalty for late payment will be charged. Making EMI payments on or before the due date is advised to avoid late fees and maintain good financial health.

Lock-in period structure :	A) Loan tenure <= 18 months : Lock-in period will be 50% of the total tenure period.
	B) Loan tenure > 18 months : 12 months Lock-in period.

How is the processing fee for a Personal Loan calculated?

Banks accrue administrative costs to approve and disperse a loan. Even though it is a small amount compared to the loan offered, it varies across financial institutions. For instance, the processing fee may change depending on the loan amount.

How do I choose the best Personal Loan financial institution?

There are various factors to consider when selecting the best personal loan financial institution. Ensure the loan charges are checked, the location is nearby and read the terms and conditions of the loan.

View All

People also looked at

Personal Loan for House Renovation

Repair, remodel or renovate your home with Home Renovation Loan.

Personal Loan for Women

Kotak Mahindra Bank presents lucrative personal loans specially designed for women.

Personal Loan for Government Employees

Take care of your emergency needs with a special personal loan, only for government employees.

Customer testimonials

Reviewed on 03/23/2022