Loan Against Property - Terms & Conditions

MOST IMPORTANT TERMS AND CONDITIONS (MITC)

LAP AND TOP UP

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.

Repayment

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

Notes:

• 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.

Default

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.