Tips to manage your Personal Loan EMI payments – Kotak Bank

20 AUGUST, 2019

Personal loans have become important than ever. You can get a loan to either meet your short-term or long-term financial needs. Personal loans help you to keep away from bankruptcy. Recent trends have shown that millennials also prefer meeting lavish goals such as traveling, destination weddings, etc. with the aid of personal loans. Once you have secured a loan, you tend to care less about repaying the personal loan and also tend to overspend more than originally planned. So in order to avoid defaulting, here are a few useful tips to help you manage your personal loan EMI payments efficiently.

  • Before you apply for a personal loan, always use a personal loan EMI calculator to check how much exactly you would need to pay for your EMI per month. If you think that affording a higher value per month might get strenuous for you, do not go for a high personal loan amount. Apply for a personal loan that you can repay easily.
  • Also, pick a personal loan that would amply satisfy your needs and not an outlandish amount.
  • Keeping a high CIBIL score will help you get a personal loan with lower interest rates, which subsequently means lesser EMIs. Therefore always try to maintain a good credit score and not miss any EMI payment.
  • It is always important to plan for unexpected financial emergencies and set aside an amount for such urgent scenarios. Let us consider a time when one of your family members gets admitted to the hospital, and you have to now pay their medical bills as well as your EMIs. Now if you have a certain amount set aside for EMIs, then you will come through the situation all right, but if you haven’t, you will miss your payment and your credit score will plummet.
  • Make sure you pay your EMI on time. It is very important to have a personal loan repayment strategy to be regular with your loan payments and avoid being a defaulter. In case there’s a delay in your payment, it will lead to extra charges and payments. And if you miss it altogether, there will be higher penalties and severe consequences for your credit score. So, be mindful of the EMI deadlines and try to pay in advance.
  • Before applying for a personal loan, check whether the amount for the EMIs is more than 50% of your monthly income. If it is, don’t go for it. You should have enough left after paying the EMI so that you could afford the basic necessities for the month.

Once you have identified your financial requirements, it is time to apply for a personal loan. Some banks offer lowest interest rates, flexible repayment schemes, and convenient EMI plans on personal loans. Get access to an online personal loan EMI calculator, and get a fairer idea about your EMI figures, to never miss a payment during the repayment tenure.

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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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