Frequently Asked Questions

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What is the maximum amount I can borrow for a home loan?

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.

 However in case of Commercial Loans against Property or Loans against an existing property you can borrow up to 60% of the cost of the property. The Home Loan Balance Transfer Amount shall, however, be restricted to the Outstanding Balance of Loan with the existing financer.

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How will my home loan eligibility be determined?

Your home loan repayment capacity as determined by Kotak Mahindra Bank will help decide how much you can borrow.

 Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependent's, spouse's income, assets, liabilities, savings history and stability and continuity of occupation.

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In how many years can I repay the home loan amount?

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.

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Who can be my co-applicant?

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.

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Can I get the benefit of reduced interest rates in the intervening period or during the balance tenure of my loan?

In Floating rate loans, change in MCLR rate will have direct impact on the interest rate of Home Loan.

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When will the home loan be disbursed?

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.

 Further, you should have invested your own contribution amount towards the property. 'Own contribution' is the difference between the cost of the property and the loan amount.

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In how many installments can the home loan be disbursed?

The home loan will be disbursed in full or in suitable installments taking into account requirement of funds and progress of construction, as assessed by Kotak Mahindra Bank.

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Does the agreement for sale have to be registered?

Yes, very much so. In many states in India, the agreement for sale between the builder / seller and the purchaser is required by law to be registered.

 You are advised, in your own interest to lodge the agreement for sale at the office of the Sub-registrar appointed by the State Government under the Indian Registration Act, 1908.

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Does the property have to be insured?

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.

 Also, we offer Insurance options to cover your Home Loan Liability. That way, you will be at peace that you and your loved ones will not lose your home.

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What kind of security is required?

In most cases, the property itself, bought or intended to be bought, becomes the security till the entire loan is repaid.

 In some cases additional security such as life insurance policies or Term Deposit receipts of Kotak Mahindra Bank (if available) can be provided.

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Is there any tax benefit available on home loans?

Yes. Borrower can claim tax benefits on the availed home loan as per below details.

  • Tax benefits on principal repayments:  Up to Rs. 1.5 lakh as principal repayment on your home loan will be allowed as a tax deduction under U/S 80C and 80CCE of the IT Act of 1961 if it’s a first home. In case of second home or under construction properties, tax benefits on principal repayments will not be applicable.
  • Tax benefits on interest paid: Tax benefits on interest paid vary depending on self-occupied or let out property or if the property is under construction.

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.

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Is Prepayment of Home Loan allowed?


Yes, Prepayment is allowed on Home Loan.

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Can I close my Home Loan? What are the Charges for prepaying my loan?



Prepayment / foreclosure is allowed on Home Loan without any charges.

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Who can be joint borrowers in case of a Home Loan?

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.

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What is the maximum number of Joint borrowers for a Home Loan?

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.

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What is a floating rate Home Loan?

Floating rate of interest are the interest rate which changes with change in interest rates. If rate of interest increases by the lender, customer who has avail loan on floating rate of interest, their Rate of interest also increases hence customer repayment (EMI) also increases. 

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What is an amortization schedule?

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.

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What is the usual time required for disbursement of a Home Loan?

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.

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Can I sell the property even when the Home loan is outstanding?

No, borrower cannot sell property without clearing outstanding home loan amount of existing bank/financial institution.

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What does market value of the property mean?

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.

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Who can avail subsidy under CLSS in PMAY?

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.

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What is the definition of beneficiary family in accordance to PMAY?

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.

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Is PMAY scheme applicable for properties in rural areas?

It is not.

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Is women ownership mandatory for being eligible for this subsidy under PMAY?

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.

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What is the process of claiming interest subsidy under PMAY?

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.

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How will I receive the interest subsidy that I’m eligible for under PMAY?

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.

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Is there any limit prescribed under PMAY on the loan amount or cost of property?

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.

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For availing the subsidy under PMAY, what additional documents do I need to provide?

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.

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Can NRIs avail this subsidy under PMAY?

Yes

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I have a small business. Can I avail a home loan under PMAY?

Yes, you can avail this facility, subject to meeting the income and other criteria defined under this scheme.

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Is it mandatory to provide the Aadhaar Card details for all the member of the beneficiary family?

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.

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Frequently Asked Questions

What is the maximum amount I can borrow for a home loan?

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.

 However in case of Commercial Loans against Property or Loans against an existing property you can borrow up to 60% of the cost of the property. The Home Loan Balance Transfer Amount shall, however, be restricted to the Outstanding Balance of Loan with the existing financer.

Was this information helpful to you? Yes No

In how many years can I repay the home loan amount?

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.

Was this information helpful to you? Yes No

Who can be my co-applicant?

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.

Was this information helpful to you? Yes No

Who can be joint borrowers in case of a Home Loan?

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.

Was this information helpful to you? Yes No

What is the usual time required for disbursement of a Home Loan?

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.

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Disclaimer (Things you should know):

For loans: Credit at the sole discretion of the Bank and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.

* Rs. 5,000 Flat processing fee applicable for women applicants.