Personal Loan - Know Answers To All The Personal Loan FAQs at Kotak Bank

Frequently Asked Questions

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What is Kotak’s personal loan interest rate?

Kotak offers personal loans at a reasonable interest rate starting from 10.75% p.a. However, the rate may vary depending upon a customer’s profile, income, previous credit record, among other factors.

Can outstanding credit on previous borrowings or cards influence my personal loan interest rate?

Yes, it most certainly will. If you have a track record of not paying your credit card dues on time or have pending installments for previous debt, you are less likely to be approved. 

Even if you are approved, you are less likely to get a low rate of interest.

Can my credit score influence my interest rate? How?

Yes, a CIBIL score or a credit score is among the first factors loan providers check because it reflects your creditworthiness. People with a low score can still get a personal loan. 

However, the personal loan interest rate would not be low, or there may be some hidden charges. 

What to do if your credit score is bad? Can I still get low-interest personal loans?

Yes, it is possible to secure the lowest personal loan interest rate with a poor credit rating. The easiest way of doing so is offering collateral, which might help your loan provider trust you.


Another way is to get a co-applicant with better creditworthiness. Many applicants end up falling into the trap of ‘Personal loans for low CIBIL score applicants’. These loans may promise low rates but have various hidden charges and payment fees that end up making the loan pricey and a lot more than bargained for.

Can I get a lower interest rate than what has been publicly declared by the bank?

Certainly! It is a possible outcome for those loan seekers with a high CIBIL score and a positive rapport with the lender.

Do I get a special discount on Personal Loan Interest Rate if I apply with my existing lender?

While no guideline mandates a bank to entertain queries regarding a reduction, you may be able to get a lower interest rate for your personal loan than the rest of the applicants.


This scenario is especially possible if you have previously borrowed from the loan provider and have cleared your debts as per the schedule. An old and trusting rapport with the lender can always do you a favor!

While looking for a personal loan, should I go for the lowest personal loan interest rate?

No. We realize that interest rates can make a loan far more expensive than it has to be; however, do not fall into the trap of low-interest rate loans. Always read the documents to understand the hidden charges better.

 You should look for a section titled ‘Personal Loan Charges’ to get more clarity.

Are personal loan interest rates adjustable while the loan is on?

Not if you have opted for a personal loan with a fixed interest rate. However, if you have opted for a variable interest rate, your interest rate will change as per the new lending guidelines provided by RBI.

How soon can I expect a variable or floating interest rate to change?

While there is no set frequency, you can expect a change every time RBI guidelines on Repo-linked Lending Rate (RLLR) change.

Is it possible to get your loan amount recalculated on a daily reducing balance?

Yes, you can do this if you have opted for monthly/daily reducing adjustable interest rate personal loans. After every installment you pay, the outstanding amount becomes the new principal, and the bank will periodically calculate the new interest rate.