What is a Personal Loan Overdraft Facility?
A personal Loan Overdraft allows the customers to withdraw funds as per requirement, and pay interest only on the used amount for the utilization period. This option is handy for meeting pressing needs or managing unexpected expenses. The Overdraft facility is available for salaried and self-employed individuals alike. A Personal Loan Overdraft guarantees you have immediate access to funds without the higher costs typically associated with other loans.
Features and Advantages of a Personal Loan Overdraft:
Opting for an Personal Loan Overdraft for salaried individuals or self-employed professionals comes with numerous benefits. Here’s how Personal Loan Overdrafts make managing finances flexible and convenient:
- Flexible Limit
1 year fixed limit & drop line limit thereafter. Depending on the limit and tenure offered.
| Loan Amount |
Rs. 100000 - Rs. 3500000 |
| Tenure |
Upto 60 months |
| IRR |
13.50% onwards |
- Pay as per use: This facility allows you to pay interest only on the utilized amount instead of paying interest on the entire sanction limit.
- Simple Documentation: The documents required for a Personal Loan overdraft are typically straightforward and easy to provide.
- Multiple withdrawals via online transactions: Access funds online to meet an array of personal expenses, as many times as needed.
- Transfer Funds across Accounts: Enjoy the freedom to transfer funds seamlessly across both Kotak and non-Kotak accounts.
- Pay All Bills: Use the funds to pay utility bills, credit card bills to manage various payments seamlessly.
Eligibility for Personal Loan Overdraft
Eligibility for a Personal Loan Overdraft is generally based on your financial history and existing relationship with the lender. It involves meeting specific criteria that confirm your capability to manage and repay the borrowed funds. Here's a detailed look at these requirements:
Broad Eligibility criteria are as follows:
| Eligibility Criteria |
Requirement |
|---|
| Age |
Individuals aged between 21 and 58 years are eligible |
| CIBIL score |
Required CIBIL score of >=730 |
| Minimum monthly income |
Minimum Take home salary of Rs. 50,000 for Kotak salary account holders, Rs. 1,00,000 for Non-Kotak salary account holders from tier 1 cities and Rs. 70,000 for Non-Kotak salary account holders from non-tier 1 cities |
| Employer and Risk Evaluation |
Other than the above mentioned criteria, customer’s employer category and overall risk profile is evaluated |
Fees and Charges For Personal Loan Overdraft
Understanding the fees and charges associated with a Personal Loan Overdraft is crucial, so please find the detailed breakdown of the various fees and charges a borrower must be aware of before applying.
| Charges specific to Personal Loan Overdraft facility |
Applicable amount |
|---|
| Interest rate |
13.50% per annum onwards |
| Processing fees |
Up to 3% + taxes of the final loan amount (one-time) |
| Penal Charges on Overdue/Overutilised amount |
Amounts standing unpaid on respective due dates shall attract penal charge at 8% per annum (to be charged for actual no. of days) on overdue amount plus applicable taxes not exceeding Rs. 5 lac (plus taxes) in a calendar month per contract/loan. |
| Lock-in Period |
12 months |
| Foreclosure Charges (post lock-in period) |
Nil |
| Foreclosure Charges (in case lock-in period is not served) |
4.5% + taxes on current sanction limit |
| Non-utilization charges |
If average utilization of facility limits for a quarter is below 60% of sanctioned limits, Commitment charges of Rs. 5.50 per day per lac of unutilized limits (or a part thereof) + applicable taxes. |
| Repayment account swap charges |
Rs.500 + taxes per swap |
Account statement charges
|
Physical account statement: Rs.200 + taxes per instance (can be availed from any Kotak branch) |
| Please note that account statement can be downloaded for free via net banking/mobile banking. |
| Bounce/dishonour charges |
Rs.750/- per instance |
| Disclaimer |
|
The fees and charges are subject to revision by Kotak Mahindra Bank from time to time. If there are any changes in the fees and charges structure, the same will be updated on the website/GSFC.
|
List of Documents Required for Personal Loan Overdraft
The documentation process for a Personal Loan Overdraft is relatively simple:
Please find below the list of documents required:
- ID and Address proof
- PAN Card
- Pay Slip for last 2 months
- Bank Statement of primary account for last 3 complete months
You can withdraw Personal Loan Overdraft funds whenever you need and transfer them to your bank account within 2 hours. This hassle-free online procedure to apply for a Personal Loan overdraft ensures immediate financial support is available whenever you need it.
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