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How Getting A Home Loan Is Easy with Kotak Bank

You've likely heard that getting a home loan at an early phase in your career is a hassle since real estate prices are soaring sky-high and residential spaces are running out quickly due to high demand from the populous. Albeit true, getting a home loan, in reality, is not as hard as it seems, thus opting for a home loan is a smart choice for those who want to secure a permanent residence in suburban areas.

If you're thinking of applying for a home loan, then here's what you need to know.

How is the Home Loan Sector Shaping Up?

The home loan industry has been booming in the recent years as Indian banks (both public sectors and NBFCs) are rising to the occasion by offering affordable housing schemes through the availability of equated monthly instalments. Experts point out that getting a home loan these days is easy since banks are in favour of lending to the younger generations due to rising employment and lucrative salary schemes that accompany them.

The BCG report states that the estimated shares of NBFCs in total loans rose from 21% to 44% between 2014 and 2017 and 9% of the growing population are individuals below 25 years old.  These statistics show that investing in a home loan is a smart choice for those who are not afraid of responsibly borrowing and repaying on time.

What Is the Eligibility to Get A Home Loan?

If you're opting for a home loan, you have to meet specific eligibility criteria considered by banks and NBFCs alike. For starters, you must be salaried and show proof of a regular source of income through appropriate documentation. Home loans generally cover up to 75% to 80% of the property's value for amounts above 25 to 50 lacs. Modern banks like Kotak Mahindra, however, secure up to 75% to 80% of the property's valuation amount based on the applicant's CIBIL score and income profile.

Key eligibility criteria factors for availing home loans through Kotak Mahindra are-

  • Age (no less than 21 years old and no more than 65 years old)
  • Proof of any financial obligations applicants have
  • Number of dependents
  • Work qualifications and experience
  • Savings and credit history
  • Whether the applicant can keep his job and remain employed

How to Apply for A Home Loan?

If you're a salaried individual and you meet the minimum eligibility criteria for applying for a home loan, you need to provide the following documentation-

  • Signed application form with scanned copies of signature and photographs
  • Salary slips dating back to the last three months
  • Latest Form-16/ITR

KYC (Know-Your-Customer) Documents such as-

  • Valid ID Proof - Any one of PAN Card, Aadhar Card, Passport, Driving License and any valid official document outlined by the RBI
  • Proof of residence - Any one of Aadhar Card, Passport, Driving License, Voter ID Card, and any valid official certificate described by the RBI
  • Latest bank statements dating back to the last six months

Eight Benefits of Applying for A Home Loan with Kotak

Let's talk about how banks like Kotak Mahindra are making a difference where applying for home loans are concerned. Here are the following benefits (and reasons) you get with a typical Kotak Bank Home Loan application-

  1. Home Loan Balance Transfer - If you have any existing home loans, you can transfer them and clear them conveniently through equated monthly instalments over the long-term. If you're considering filing an application through Kotak Mahindra, you are offered lower interest rates and can pay the bank directly.

Did you know? Kotak Mahindra Bank offers the facility for home loan bank transfers!

  1. Low-Interest Rates - Kotak bank home loan interest rates are very low when compared to other private/public sector banks. Prepayment facilities are available for home loan applications at Kotak, and there are pre-closure charges involved in applications.

Did You Know? Kotak Mahindra offers some of the lowest floating interest rates in the home loan industry starting at 8.5%!

  1. Top-Up Amounts- If you've always wanted extra cash for any upgrades to your existing home or ever dreamed of making a couple of renovations, you can make that possible with top-up loan amounts offered by the bank.

Did You Know? You can get top-up amounts of up to 75% of the original loan amount at Kotak Mahindra bank!

  1. PMAY Scheme - If you're from an economically weaker section (EWS) or know someone who belongs to low-income groups (LIG), you can still avail a home loan through the Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) which promises affordable housing to applicants belonging to specific income brackets. Kotak Mahindra is one of the Indian banks that offer home loans under the PMAY Scheme for individuals.

Did You Know? Applicants having a yearly income of Rs. 12 Lacs can avail a maximum subsidy amount of up to Rs 2.6 Lacs under the PMAY Scheme from Kotak Mahindra Bank.

  1. No Hidden Charges - Leading banks like Kotak Mahindra allow applicants to avail home loans entirely online. There are no hidden charges involved with these loan amounts.

Did You Know? There are no processing fees charged for home loans in Kotak Mahindra.

  1. Superfast Loan – When applicants meet the required eligibility criteria and have the appropriate documentation, loan applications are usually sanctioned within a matter of merely 4 hours from the time of their application submission. Superfast loans apply to Indian residents only, and NRIs are not eligible for this scheme.

Did You Know? If you're an NRI, you can still apply for regular home loans through Kotak.   

Long Tenure - Loan tenures make or break home loans. You can get EMIs that last up to a maximum 20-years, and there is even an option to ensure regular home loans when filing your application.

Did You Know? You can add your spouse and family relatives as co-applicants to increase your eligibility for longer repayment tenure at Kotak Mahindra!

  1. Digital Banking - An added advantage of online transaction ecosystems is the apps they come with. According to a CNBC Report, the Smartphone user base is set to grow to 6 billion users by the year 2020! Apps like the Kotak 811 consider requirements of younger generations who are seeking services from the home loan industry. You can open zero-balance bank accounts and transact using cashless virtual debit cards.

Did You Know? Tools like the home loan EMI calculator and the home loan eligibility calculator are integrated with Kotak Mahindra App, and you can download it for free from the app store.

Conclusion

For quick loan amount disbursements and low home loan interest rates, Kotak Mahindra makes buying your dream home a reality by providing the financial support you require. The bank offers some of the industry's best financing solutions for those seeking property loans across India at reasonable terms and conditions.

Applying for a home loan with Kotak comes with many benefits, and you can get a home loan at Kotak Mahindra by visiting the official website or by dropping in at any of their nearest branches.

 

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