Loan Against Property - Terms & Conditions | Kotak Mahindra Bank
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Personal Insurance

Customers can opt for insurance cover on the Life of the Borrower which would cover, depending upon the sum assured, the liability outstanding under the loan account at the time of death of the Policy holder. Availing such insurance cover is optional.


Property Insurance

The Bank may require the borrowers to insure at their own cost, the property to be financed by the bank and given as a security of the loan.



All Loans are to be repaid by way of Equated Monthly Installments (EMI) over tenure of the Loan. The Repayment commences from a Date specified by the Bank at the time of Disbursement. EMI Due Dates would generally be 1“, 5”, or 1Oth of a Month as may be chosen by the Borrower and accepted by the Bank. Repayment can be made by way of ECS or Standing Instruction (in case Customer has Banking with Kotak Mahindra Bank Limited) or as the Bank may accept.

This would generally be applicable in the case of part disbursements (Disbursement in Stages like in Under-construction Properties) or in case of Disbursement within the specified period before the first EMI Due Date agreed upon. PEMII is calculated at the prevailing ROI on the Disbursed Amount (or Outstanding Loan Amount, whichever is lower) for the No. of Days remaining till the upcoming Due Date of payment of Installment (EMI, PEMII)

The Loan will be considered as Fully Repaid only when all the Dues are paid and the Outstanding Loan amount becomes Zero.


Schedule of Charges


Processing Fee (Non-refundable)

It varies depending upon the type of Loan. It is maximum 2% of the Loan Amount plus GST and any other applicable statutory levies.


Documentation charges(non-refundable)

Upto Rs 10000 plus GST and other statutory levies.


Commitment Fee

2% of the undisbursed amounts of the Loan plus GST and any other applicable statutory levies, This would be applicable even if the Loan is foreclosed before Full Disbursement.


Cheque dishonor Charges

Rs. 750/- (inclusive of GST and other applicable statutory levies) per instance.


Charges for Copy of any Document

Rs. 500/-(plus other applicable statutory levies) per instance.


Prepayment Charges

NIL (For Home Loan & Term Loan for Individuals at floating rates)


Prepayment Charges (Non-individual)

No Prepayment/Foreclosure is allowed till the lapse of Lock in Period of 6 months after EMI commencement.

•     After the Lock-in Period, Part Prepayment of minimum Rs.25,000/- and maximum upto 25% of outstanding Loan Amount can be Made without any Prepayment Charges every 6 months. The minimum period between any two prepayment shall be atleast 6 (six) Months.

•     For any Part Prepayment in excess of 25%, 4% (plus GST and other applicable taxes) of the excess prepayment Amount shall be charged as Prepayment Charges.

•     For Full Prepayment any time after the Lock-in Period, Prepayment Charges shall be 4% (plus GST and other applicable taxes) of the Foreclosure Loan Amount plus Amounts prepaid during the last 12 months.


Repayment Mode / Amount swap Charges

Rs. 500/- (plus GST and any other applicable statutory levies) per instance


Substitute interest (penal interest)

2% p.m. compounded monthly on the Amount Due but unpaid from the Date of the

Amount falling Due till the Date of actual Payment.


Collection Charges (in case of Default)

30% (plus other applicable statutory levies) of Cheque / instrument Dishonor Charges plus Substitute Interest.


Charges for duplicate NOC / No due certificate

Rs. 500/- (plus other applicable statutory levies) per instance.


Charges for copy of ClBlL Report (to Customer who has availed Loam Overdraft from us)

Rs.50/-(plus GST and any other applicable statutory levies) per instance.


Charges for Interest Certificate / Account Statement

Free once in a Financial Year. Thereafter, Rs. 250/-(plus GST and any other applicable statutory levies) per instance.


Top Up OD

Annual Renewal Charges — Renewal Fees of 0.25% of the limit (dropped limit after reduction of annual drop) shall be collected on the due date of renewal

•   Non Utilization charges-0.25% of difference between actual average utilization and 25% of the average operating limit during the quarter, subject to minimum of

Rs 1250 + GST, chargeable on quarterly basis.



  • Other Product-specific Charges shall be informed separately at the time of availing the Loan. (Like Franking of HLD / Guarantor Agreement which varies from State to State, Franking / Notarisation of RBI and other Affidavits as applicable, etc.)
  • Charges for other Services would be specified as applicable when the Customer applies for those Services. (Like Revalidation of Sanction, Change in Property, Reschedulement of Loan, change in EMI Date, Solvency Charges, Request for authenticate documents, etc.). For fixed rate loan prepayment charges as per point 6 above will apply.
  • Taxes / other statutory levies may be charged if applicable as per Government / RBI directives.
  • Nil Prepayment charges for MSE (micro and small enterprises) cases
  • Kotak Mahindra Bank Ltd (The Bank) the right to alter any charges or fees from time to time or to introduce any new charges or fees, as it may deem appropriate and will be published on the bank’s website.
  • For Detailed Terms & Conditions please refer to our MITC on bank’s website.



In case of Default (i.e., if the Amount Due is not paid by the Due Date), the  Bank will try to inform the Customer for  payment of any Loan Outstanding by Post, FAX, Telephone, E-mail, SMS and / or through Third Parties appointed for Collection purpose to remind, follow-up  and collect Dues. Any Third party so appointed, shall adhere to the Indian Banks Association‘s (IBA) Code of Conduct on Debt Collection.


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What can loan against property be used for?

Loan Against Property is primarily taken for the purpose of Business Expansion,

 Purchase of Machinery, Debt Consolidation, Funding your other business requirement.

How can I apply for Loan Against Property?

You can apply for Loan Against Property in following ways:

What property can be considered as collateral for loan against property?

The property which we as a bank accepts are Residential, Commercial (Shops and Offices), Industrial and specialized property.

Can I get any tax benefit on loan against property?

Tax benefit can be enjoyed, but we strongly recommended you to consultant your Tax Consultant for this.

What are the different forms of loans offered under Loan against Property?

We offer Term Loan and Overdraft facility under Loan against Property.

Loan Against Property

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