What is a Personal Loan Overdraft Facility?
A personal Loan Overdraft allows the customers to withdraw funds as per requirement, and pay interest only on the used amount for the utilization period. This option is handy for meeting pressing needs or managing unexpected expenses. The Overdraft facility is available for salaried and self-employed individuals alike. A Personal Loan Overdraft guarantees you have immediate access to funds without the higher costs typically associated with other loans.
Features and Advantages of a Personal Loan Overdraft:
Opting for an Personal Loan Overdraft for salaried individuals or self-employed professionals comes with numerous benefits. Here’s how Personal Loan Overdrafts make managing finances flexible and convenient:
- Flexible Limit
1 year fixed limit & drop line limit thereafter. Depending on the limit and tenure offered.
Loan Amount |
Rs. 100000 - Rs. 4000000 |
Tenure |
Upto 60 months |
IRR |
13.50% onwards |
- Pay as per use: This facility allows you to pay interest only on the utilized amount instead of paying interest on the entire sanction limit.
- Simple Documentation: The documents required for a Personal Loan overdraft are typically straightforward and easy to provide.
- Multiple withdrawals via online transactions: Access funds online to meet an array of personal expenses, as many times as needed.
- Transfer Funds across Accounts: Enjoy the freedom to transfer funds seamlessly across both Kotak and non-Kotak accounts.
- Pay All Bills: Use the funds to pay utility bills, credit card bills to manage various payments seamlessly.
Eligibility for Personal Loan Overdraft
Eligibility for a Personal Loan Overdraft is generally based on your financial history and existing relationship with the lender. It involves meeting specific criteria that confirm your capability to manage and repay the borrowed funds. Here's a detailed look at these requirements:
Broad Eligibility criteria are as follows:
Eligibility Criteria |
Requirement |
---|
Age |
Individuals aged between 21 and 58 years are eligible |
CIBIL score |
Required CIBIL score of >=730 |
Minimum monthly income |
Minimum Take home salary of Rs. 50,000 for Kotak salary account holders, Rs. 1,00,000 for Non-Kotak salary account holders from tier 1 cities and Rs. 70,000 for Non-Kotak salary account holders from non-tier 1 cities |
Employer and Risk Evaluation |
Other than the above mentioned criteria, customer’s employer category and overall risk profile is evaluated |
Fees and Charges For Personal Loan Overdraft
Understanding the fees and charges associated with a Personal Loan Overdraft is crucial, so please find the detailed breakdown of the various fees and charges a borrower must be aware of before applying.
Charge Type |
Applicable Amount |
---|
Personal Loan Interest Rate (Fixed) |
Starting from 10.99% p.a. |
Loan Processing Fees (Non Refundable) |
Up to 3% of the final loan amount plus taxes. It 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 a penal charge at 8% per annum (to be charged for actual number. of days) on overdue amount plus applicable taxes. |
EMI Dishonour/Bounce Charges |
INR 750/- plus taxes per instance |
Swap Charges |
INR 500/- plus taxes per instance |
Lock-in Period |
No lock-in period for Kotak Personal loans post payment of first EMI. |
Foreclosure Charges
|
Up to 3 years = 4% + taxes on outstanding principal |
After 3 years = 2% + taxes on outstanding principal |
|
For loan amount greater than INR 10 Lakhs : Foreclosure charges of INR 999/- plus taxes (only if closing through own funds and after completion of 12 months).
Applicable only for Sanction Letter issued on or before 21st June 2023 and Subject to the following conditions. (This will not be applicable for digitally availed loans)
i) Customer will have to provide a copy of this sanction letter/email at the time of foreclosing the loan with the above clause mentioned.
ii) Latest 3-month salary account statement and savings account statement (from where payment is being made) must be submitted, and no loans should have been availed during the last three months to benefit from this offer (FC 999/-). The Bank has the right to ask for additional documents in order to validate the claim and the decision of the Bank will be final and binding in all respects.
|
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.
Post that - INR 200 plus taxes per request
|
List of Documents Required for Personal Loan Overdraft
The documentation process for a Personal Loan Overdraft is relatively simple:
Please find below the list of documents required:
- ID and Address proof
- PAN Card
- Pay Slip for last 2 months
- Bank Statement of primary account for last 3 complete months
You can withdraw Personal Loan Overdraft funds whenever you need and transfer them to your bank account within 2 hours. This hassle-free online procedure to apply for a Personal Loan overdraft ensures immediate financial support is available whenever you need it.