Home loan EMI is a systematic and easy approach towards home loan repayment. EMI stands for equated monthly installment, which includes principal amount, and the interest payable divided through the tenure chosen. Home loan borrower has to make the repayment of the loan each month in the form of home loan EMI.
When borrowing a home loan, it is important for the borrower to calculate the home loan EMI.
The home loan EMI for 20-lakh loan depends on the interest and the tenure chosen. For instance, home loan EMI for 20 lakhs for tenure of 20 years at interest rate of 6.65% p.a. would be Rs. 15,089.
The home loan EMI for 30-lakh loan would depend on the interest and the tenure chosen. EMI is calculated based on the amount borrowed, tenure chosen and the interest rates. A longer tenure attracts a low EMI, whereas a shorter tenure attracts a high EMI amount.
The home loan EMI depends on various factors including loan amount, interest rate, tenure, prepayment and down payment.
Loan amount: The higher the amount borrowed, the higher will be the EMI and vice versa
Interest rate: The rate at which the bank is providing the loan. Interest rate is determined based on your CIBIL score.
Loan tenure: The longer the tenure, lesser is the home loan EMI and vice versa
Down payment: This amount is payable by you at the time of property purchase. The higher the amount payable, lesser the amount borrowed which further leads to low EMI payable and vice versa.
Prepayment of home loan EMI helps you get rid of debt faster and also leads to a decrease in the outstanding principal amount payable. The reduction in outstanding principal will further reduces the loan EMI or Outstanding tenure depending on customer choice at the time of prepayment.
The processing fee on the home loan is payable at the time of application.
No, the processing fee on home loan is not refundable.
Kotak Mahindra Bank charges its customers the following fees/charges:
A GST of 18% is applicable on loan processing fee.. Kotak Mahindra Bank charges a processing fee of 0.5% in case of salaried professionals, while for non-salaried individuals it is 1%. Processing fee generally is a non-refundable charge to be paid by the borrower at the time of loan application.
You will require the following essential documents for your home loan:
No. It is not possible to avail a home loan at zero documentation. However, Kotak Mahindra Bank ensures a simple and quick home loan application and approval process with basic documents.
When applying for a home loan, generally last three years’ income tax returns with computation of income are required to be submitted.
Major factors affect the home loan interest rates.
You can reduce your home loan interest rate through the following approaches:
As a borrower, you should avail of the fixed interest rate home loan if the interest rate is low and your loan tenure is longer.
Home Loan EMI calculator assists borrowers in determining the monthly amount they have to pay to settle their Home Loan. You input required loan amount, the rate of interest, and the loan tenure in the home loan EMI calculator. The calculator will then show you the total interest payout and the EMI estimate.
Home loan interest rates are linked to external benchmark - Central bank’s Repo rate being one such benchmark. Banks add spread to the external benchmark to derive home loan interest rate.
The home loan interest rates are affected by the following factors -
You can reduce your home loan interest rate if you have a good credit score. Salaried borrowers might also get the chance to opt for a reduced home loan interest rate.
You can opt for a fixed or floating home loan interest rate depending on their suitability.
If you prefer to have a fixed rate of interest throughout the loan tenure or if you believe the home loan interest rates to rise in future, you can opt for a fixed home loan interest rate.
However, if you believe home loan interest rates will fall in future and you want to enjoy the benefits of reduced rates, you can choose the floating home loan interest rate.
In addition to processing fee, other home loan charges are payable only if your home loan application is approved. These charges are: documentation charges, charges for interest certificate, etc.
A home loan amortization schedule is a repayment schedule which shows the EMIs that you pay for the loan every month, the interest and principal being repaid in each EMI, and the outstanding balance of the loan after each EMI is paid. It is a detailed table wherein you can check the loan balance for a specific date.
In a fixed rate home loan, the interest rate remains fixed throughout the loan tenure.
Yes, you can close your home loan. The charges for prepaying the home loan are.
Kotak Mahindra Bank requires the following documents:
Salary slip is an important document that banks expect salaried borrowers to submit. It is used as proof of income.
You can switch to lower rate of interest by paying switch fee to your existing lender. Lower rate of interest would reduce your home loan EMI.
It is usually charged on outstanding principle or undisbursed amount if any.
At Kotak Mahindra bank, switch fee is 0.5% with a capping of Rs. 10,000 + GST.
Income documents like salary slips, bank statements, ITR records are required when you apply for a home loan. Your income documents are used to determine how authentic your source of income is, and that you are financially capable to repay the home loan amount. Although income documents cannot directly reduce your housing loan EMI, a good and stable income can get you lower rates of interest. That in turn reduces the interest component of your EMI, lowering your overall monthly instalment.
You can borrow up to 90% (upto 80% for original loan between Rs. 20-75 Lacs, & 75% for original loan above Rs. 75 Lacs) of the cost of the property in case of Home Loan Balance Transfer.
Your home loan repayment capacity as determined by Kotak Mahindra Bank will help decide how much you can borrow.
You can opt for a loan period of up to 20 years or outstanding tenure of the proposed loan to be taken over whichever is lower and can vary depending on your profile.
If you are an individual - your spouse, your parents, or even your major children can be your co-applicants. The co-owner of a property has to be a co-applicant, but a co-applicant need not be the co-owner of the property.
You can take the disbursement after credit, technical and legal appraisals of the property have been done, besides execution of relevant documents & deposit of original property documents is required to be completed prior to disbursement.
You Can avail a home loan with Kotak Mahindra Bank, by applying online or visiting our nearby branch.
Online Process:
Our representative will get in touch with you for processing your online application.
Your home is your pride and joy. Don't let unplanned events take it away. Property insurance will take care of home in case an unforeseen event strikes.
In most cases, the property itself, bought or intended to be bought, becomes the security till the entire loan is repaid.
Yes. Borrower can claim tax benefits on the availed home loan as per below details.
Summary of tax benefits on principal and interest paid is as below
| Tax Benefits | On Principal Repaid | On Interest Paid |
| First Home – Self Occupied | Actual principal repaid subject to a maximum of Rs. 1,50,000 (Rs. 2 lakh for senior citizens) can be claimed as investment eligible for tax deduction under section 80C. | Actual home loan interest paid subject to a maximum of Rs. 2 lakh (Rs. 3 lakh for senior citizens) if house construction completed within 5 years from the end of the financial year in which loan is taken If construction of house not completed within five years then Rs. 30,000 is tax exempt Additional exemption of upto Rs. 50,000 on interest paid for loans upto Rs. 35 lakh with cost of home upto Rs. 50 lakh. |
| First Home – Rented/ Vacant (deemed to be let out property) | Upto Rs. 1,50,000 (Rs. 2 lakh for senior citizens) eligible for tax deduction under Section 80 C. The deduction is available only if the property owner is staying in a different city for work. | Exemption on interest is capped at lower of two, a) Rs. 2,00,000 or b) actual interest paid for all properties owned by a tax payer. |
| Second Home or Additional Property | None | Exemption on interest is capped at lower of two, a) Rs. 2,00,000 or b)actual interest paid for all properties owned by a tax payer |
| Under Construction Property | None | The interest paid can be claimed in equal parts in five financial years post completion or handing over of property within the overall annual limit of Rs. 2 lakh. |
NIL.
For HL Top up:
Micro & Small Enterprises - NIL
Floating rate Term Loans for Individuals for Personal Purpose - NIL
Others : No prepayment / foreclosure is allowed until a Lock-in Period of 6 months after EMI Commencement.
Others : No prepayment / foreclosure is allowed until a Lock-in Period of 6 months after EMI Commencement.
Post this lock– in period, part prepayment of minimum INR 25,000 and maximum of up to 25% of outstanding Loan Amount can be made without any prepayment charges every 6 months.
The minimum period between any two prepayment shall be at least 6 months.
For any Part Prepayment in excess of 25%, 4% (plus GST and statutory dues) 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.
NIL.
For HL Top up:
Micro & Small Enterprises - NIL
Floating rate Term Loans for Individuals for Personal Purpose - NIL
Others : No prepayment / foreclosure is allowed until a Lock-in Period of 6 months after EMI Commencement.
Others : No prepayment / foreclosure is allowed until a Lock-in Period of 6 months after EMI Commencement.
Post this lock– in period, part prepayment of minimum INR 25,000 and maximum of up to 25% of outstanding Loan Amount can be made without any prepayment charges every 6 months.
The minimum period between any two prepayment shall be at least 6 months.
For any Part Prepayment in excess of 25%, 4% (plus GST and statutory dues) 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.
Co-Borrower can be spouse, parents or brother or son, but income of co-borrower is consider as per home loan policy of Kotak Mahindra bank.
There is no capping of upper limit of number of co-borrower, however minimum one co-borrower is required.
Note: Member who all are party to agreement must have to come up as o borrower / co-borrower.
Floating rate of interest is the interest rate, which changes with time because of multiple factors. If rate of interest is increased by the lender, then rate of interest increases for all the customers who have availed a home loan on floating rate and hence customer EMI also increases.
An amortization schedule is a table detailing each periodic payment on Loan as generated by an amortization calculator. Amortization refers to the process of paying off a debt (often from a loan or mortgage) over time through regular payments. A portion of each payment is for interest while the remaining amount is applied towards the principal balance. The percentage of interest versus principal in each payment is determined in an amortization schedule.
In Kotak Mahindra Bank time require for disbursement is 2 working days after submitting all relevant document as per legal or any other document required.
No, borrower cannot sell property without clearing outstanding home loan amount of existing bank/financial institution.
The market value of a property is the price at which that property is exchanged between a buyer and a seller on the date of valuation / execution of Agreement.
A beneficiary family that does not have any pucca house in any part of India is eligible for a subsidy through PMAY, as per the income criteria defined for the family.
The beneficiary family as defined under PMAY will comprise of the husband-wife and their unmarried children. An adult earning member (irrespective of marital status) can be treated as a separate family/household.
It is not.
Women ownership or co-ownership is mandatory for EWS and LIG only. However, this condition is not mandatory for self-construction / extension. Women ownership is not mandatory for MIG-I and MIG-II.
After the loan is disbursed, the required details are sent by the bank to the NHB (National Housing Bank) for validation of data and other checks. The NHB, after necessary due diligence, approves the subsidy to the eligible customer/borrower.
Once the subsidy amount is received from the NHB, it is credited to the borrower’s home-loan account as a part payment, and the EMI is proportionately reduced.
There is no limit. However, the subsidy will be limited to a defined loan amount for each category (see details in the table above); any loan amount in excess of this defined amount will bear the non-subsidised rate of interest.
You do not need to provide additional documents except for a self-declaration (in the format that the bank will provide) that you do not own any pucca house.
Yes, you can avail this facility, subject to meeting the income and other criteria defined under this scheme.
Yes. For processing the subsidy under PMAY CLSS for MIG-I and MIG-II schemes, it is mandatory to furnish the Aadhaar Card details of all family members.
MCLR stands for Marginal Cost of Funds based Lending Rate.
You can calculate home loan interest rates using our Home Loan eligibility calculator (https://rcasprod.kotak.com/home-loan). Enter your basic personal and employment details and on submission, you will be able to see interest rate, applicable to you, basis your profile.
Processing fees is a one-time charge collected while availing a fresh home loan. A processing fee of upto 0.5% of loan sanction amount (as applicable) plus GST, is payable.
A Housing Loan EMI Calculator helps you to calculate the monthly installment amount and decide whether you can afford the financial commitment of a home loan in the long term. If you want, you can change your EMI amount depending on the amount of loan you are taking and the time period for which you'll be paying the EMIs
A home loan, also known, as a housing loan is an amount of money borrowed by an individual to purchase a house. The money is borrowed from a bank or a financial institution at a certain rate of interest and is paid back in easy monthly installments over a long tenure.
A home loan makes it easy for an individual to fund the purchase of his dream house by providing a lump-sum loan amount based on eligibility. Banks or lending institutions generally fund 75%-90% of the property value, enabling the borrower to purchase his dream house and repay the amount in EMIs in flexible tenures.
With the advanced and digital savvy journeys like ours, availing a home loan has become simple; it usually involves the below phases.
Application: Apply for a home loan online or at a nearest branch/loan center
Document Submission: Check on the home loan documentation list and submit the required documents
Loan sanction: Post successful submission of the application and documents, the bank does a KYC check and verification of your financial stability after which the loan is sanctioned.
Review: Once the loan is sanctioned, you will have to submit the property documents, which will be checked by the technical and legal teams of the bank.
Disbursal: The bank shall approve the loan based on verification of the property.
Some of the different types of home loans you can take are: home improvement loan, home repair loan, home purchase loan, home extension loan, and land purchase loan with self-construction home loan.
Yes, you can take 2 home loans at a time. However, the chances of loan approval depend on your eligibility criteria including your income, credit score, existing banking relationship, debt to income ratio and other such parameters.
The minimum salary required for a Kotak Mahindra Bank home loan is Rs. 20,000 for individuals in Delhi, Mumbai, Bangalore, Pune and Chennai. It is Rs. 15,000 for other cities.
No, you cannot get a 100% home loan for the purchase of any property. We at Kotak fund around 75% to 80% of the property value.
The loan amount you can get at a salary of Rs. 25,000 depends on various factors including your credit score, monthly income, existing EMI payout, age and location. You can use the home loan EMI calculator to get an estimate of the loan amount you are eligible to get at the salary of Rs. 25,000.
Pre-EMI refers to the payment of the interest component on the disbursed loan amount. With Pre-EMI, you are not repaying the principal amount, but only paying the interest on the amount borrowed. The option of pre-EMI is applicable only when the home or the property you intend to purchase is under construction. Once you receive possession of the property, you will be asked to repay the EMIs in full.
Some of the reasons for home loan rejection are: poor credit score, frequent job changes, property issues, age, incomplete documentation and high debt-to-income ratio.
No, we do not offer a home loan only for land purchase.
Repayment of the home loan starts from the period any loan amount is disbursed.
It is not mandatory to take home loan insurance. The insurance protects the borrower’s outstanding loan in case of any unforeseen event strikes during the tenure. However, we strongly recommend taking a home loan insurance to add protection to your home.
