4 Reasons To Let A Personal Loan Take Care Of Your Big Purchases - Kotak Bank

11 MARCH, 2020

Find yourself cringing for finances every time you think of making an expensive essential purchase? Well, you don’t need to. Today, most leading banks and financial institutes offer personal loans that can be used for a slew of purposes. From purchasing household furniture, to using it to go on your dream holiday, getting a personal loan can make for a smart move. When used in the right situation, it brings several notable benefits.

Here are some reasons why you should let personal loans aid with the big purchases:

  • Use it for multiple purposes – Unlike a specific loan type, personal loans can be used to cover any personal expense. Unexpected expenses can often leave you in a big fix. Whether you have to replace a dysfunctional T.V. set, need additional money to cover your total car-purchase cost or have to consolidate a debt, this form of loan can help in multiple ways. However, you should ensure that you use a personal loan for big purchases that you need and not those that you simply want.
  • Improve your credit score – Getting a personal loan also brings you the benefit of an improved credit score. Making your payments on time or being able to pay the full amount can help build an incredible credit history. Moreover, this kind of loan can diversify the account-types that you hold. The mix of debt accounts, with a regular payment history can work wonders in boosting your credit score.
  • Longer term for repayment –Personal loans let you choose from long repayment terms. Typically, the term ranges from one to five years. There are some banks that also offer repayment terms as long as seven years. If you have a financial crunch and cannot accommodate large repayments right away, a personal loan is a good solution for your big purchases.
  • High borrowing limits – As compared with a viable option such as a credit card, a personal loan may let you borrow a much larger amount. In some cases, you may also find that the interest rates are lower in comparison. However, do note that a good credit score can get you a bigger personal loan amount. The interest rate on your personal loan is also bound to be lower with a positive credit score.

    Getting a personal loan is a fairly simple process and will not take more than a few fulfilments with the lender. Make sure that you understand the reason why you need the loan, the amount you require and also map out the best way to handle the monthly EMIs along with other expenses.

Read more about tips to manage your monthly personal loan EMIs effectively here.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

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Frequently Asked Questions

What can a personal loan be used for?

Personal Loan can help you meet unexpected expenses such as wedding expenditure, school or college fees, dream vacations, home renovation projects or even for the purchase of consumer durables. 

 

Applying for a personal loan is a lot easier, quick, and convenient with Kotak Mahindra Bank.Click https://www.kotak.com/en/personal-banking/loans/personal-loan.html to apply for the same. 

 

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Do I need to provide any security or collateral to obtain a personal loan?

No, you do not have to provide any security or collateral to obtain a personal loan. Personal loan is a type of unsecured loan. This essentially means that it is not backed by the guarantee of collateral. You are not burdened by the need to generate collateral like gold, property or shares, as with other types of loans. As there is no security to assure loan repayment, the bank will focus on the income and financial stability of the applicant. 

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What are the benefits of taking a personal loan with Kotak?

There are several benefits of availing a personal loan from Kotak bank. Some of the most notable benefits include:

  • prepaymentInstant approval – The bank approves the loan at a quick rate and this makes the process much easier to serve different financial purposes.
  • Easy Documentation – It comes with minimal documentation requirements to help you save time and cater to your emergency financial needs without any hassle.
  • Versatile usage – The personal loan can be used to fulfil many purposes. From funding a dream wedding to serving a medical emergency, it can be used to serve different planned and unplanned financial needs.
  • Attractive interest rate – The personal loan is made more convenient with an attractive rate of interest starting at 10.75 p.a.
  • Part Prepayment facility – In case of excess funds/financial liquidity , you can reduce your loan burden with part prepayment

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What is the eligibility criteria to apply for a personal loan?

The eligibility to avail Personal loan is as follows :

  • All Indian residents who are employees of either MNCs, Public and Private limited companies with a minimum age of 21 years and maximum age of 58 years are eligible for a personal loan.
  • Other Personal loan eligibility criteria :
    • Income Net monthly salary of Rs. 20,000/-
    • Minimum educational qualification - Graduate
    • Years in city - Minimum 1 year
    • Total work experience - Minimum 1 years

You can apply for a personal loan by following the below steps:

On Mobile banking

  • Go to Apply Now
  • Personal Loan ( If eligible)

On Net Banking

  • Go to Banking
  • Apply for Preapproved Personal Loan (If eligible)

Or

By simply clicking https://rcasprod.kotak.com/personal-loan?source=website&banner=ProductPageApplyonlineTab

Please Note: The same would be subject to approval. The time frame for the personal loan is 10 working days if approved.

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What is the best way to apply for a personal loan?

You can apply for a personal loan by following the below steps:

 

On Mobile banking

  • Go to Apply Now
  • Personal Loan ( If eligible)

On Net Banking

  • Go to Banking
  • Apply for Preapproved Personal Loan (If eligible)

Or

By simply clicking https://rcasprod.kotak.com/personal-loan?source=website&banner=ProductPageApplyonlineTab.

Please Note: The same would be subject to approval. The time frame for the personal loan is 10 working days if approved.

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