Kotak Mahindra Bank Personal Loan Interest Rates

Get a Kotak Mahindra Bank Personal Loan at interest rates starting from 0.92% per month. Also, benefit from tenures of up to 72 months and repay the loan comfortably at your convenience. The loan interest rates and tenure offered to you may vary based on several factors. These include your income, employment, credit score, and more. You can compare the rates offered by Kotak Mahindra Bank with those provided by other lenders on Bajaj Markets and make a wise financial decision.

Let’s understand the interest rates and other details of a Kotak Mahindra Bank Personal Loan:

Along with the interest rates, here are some charges to consider before applying for a loan:

Some common factors which may affect your personal loan interest rate are as follows:

Income 

Your income is an indicator of your repayment capabilities. Having a higher income reduces the chances of default. This reduces the associated risk for the lender. Thus, making the loan provider more willing to offer lower interest rates.

Credit Score

Your credit score is usually evaluated by your lender to assess your creditworthiness. A high score typically indicates responsible credit behaviour. This makes you a low-risk borrower, making you eligible for better interest rates.

Employment 

Frequent job changes may be viewed negatively by lenders. It does not assure the lender of a stable income which could later cause problems during loan repayment. To mitigate this risk, lenders usually offer higher rates to such applicants. 

Loan Tenure

Typically, shorter tenures come with higher interest rates than loans with long tenures. However, even though the interest may be lower for the latter, the total cost of the loan may increase. 

Employment Type

Whether you are self-employed or salaried, can affect the interest rate offered to you. Salaried individuals are more likely to get a low interest rate. As their income is stable and fixed, they are considered to be low-risk borrowers.  

Debt-to-Income (DTI) Ratio

This ratio highlights the portion of your income that is used to repay your debts. A lower ratio assures the loan provider of your repayment capabilities. This can help you get lower interest rates and more flexible loan terms.

Economic Conditions

Changes in central bank policies, inflation, etc., can affect the interest rates offered. When there is a surge in the benchmark rates due to inflation, personal loan interest rates may also rise.

Collateral

If you decide to submit your asset as collateral for the loan, you can get better loan terms. The asset acts as security in case of loan default. It can be used by the lender to recover the loan amount if required. This can make the lender more willing to offer you a personal loan at a lower interest rate.

To calculate the EMI for your personal loan from Kotak Mahindra Bank, you must have these 3 details:

• Principal Amount: The amount you wish to borrow

• Tenure: Years/months over which you want to repay the loan 

• Rate of Interest: The charge for getting the loan levied by Kotak Mahindra Bank

Next, substitute the values in the following formula:

EMI = P x R x (1+R) ^N / [(1+R) ^N-1]

Where,

• P = The borrowed amount

• R = The rate of interest  

• N = The repayment period

By solving the equation, you can get the instalment amount you need to pay each month to repay the loan. Let’s understand this better with an example. Consider that you got a personal loan of ₹10,000 at an interest rate of 10.99% p.a. from Kotak Mahindra Bank. The tenure for the loan is set at 12 months. Using the formula, you can calculate the amount, where the result will be ₹883.77. 

This calculation can be made easier and more convenient with a personal loan EMI calculator available on Bajaj Markets. Just enter the 3 details in the calculator and get accurate results within seconds. This makes it easy for you to check the effect of changes in interest rates and tenure on your personal loan. The calculator also enables you to check the amortisation schedule which provides an in-depth view of how your loan repayment progresses over the set tenure. This can help you budget and plan your finances better.