Kotak Mahindra Bank Home Loan Balance Transfer

If you are paying a higher rate of interest for your existing home loan, you can conveniently reduce the EMI burden by transferring the outstanding liability of the existing home loan to Kotak Mahindra Bank at a lower rate of interest.

• You can avail of Kotak Bank Home Loan Balance Transfer at an interest as low as 6.60% p.a. if salaried and 6.65% p.a.if self-employed.
• The tenure can be retained as per the existing home loan or can be extended if required. In short, the tenure can be customised as per the requirement of the borrower with a maximum of  20 years.
• The EMIs subsequent to the home loan balance transfer can be made directly to Kotak Mahindra Bank.
• The bank provides 80% of the original amount if the loan quantum is between Rs. 20.00 lakhs to Rs.75.00 lakhs and 75% of the original amount if the loan quantum is above Rs.75.00 lakhs.
• Kotak Mahindra Bank balance transfer top-up loan up to the extent of the existing loan will be provided that can be utilised for any of your cash requirements.
• Different EMI options to suit the borrower’s convenience.
• Processing charges at 2% to 2.5% of the loan amount.
• No pre-payment charges for loans availed by individuals at a floating rate.

Kotak Mahindra Bank Home Loan Balance Transfer  Interest Rate and charges are given below:

Interest: The rate of interest for salaried individuals starts at 6.60% onwards, and for the self-employed, it starts at 6.65% onwards.

Processing charges: 2% to 2.5% of the loan amount

Prepayment charges: Nil for loans availed by individuals at a floating rate.

There are several factors that affect the eligibility of Kotak Mahindra Bank Home Loan Balance Transfer.

• Credit history of the applicant and the savings
• The number of dependants.
• Income source
• Monthly or annual income.
• Age of the applicant.
• The number of years of work experience or business existence
• For how long the applicant is going to continue in the existing occupation.
• Qualification

Apply for a home loan balance transfer to Kotak Mahindra Bank by submitting an online or offline application along with the supporting documents as mentioned below. 

Residence Proof: Aadhar Card, Voter’s ID Card, Driving Licence, Utility Bills

Photo ID Proof: Pan Card, Passport, Aadhar Card, Voter’s Id Card, Driving Licence

Income Proof: Latest salary slips (last three months), Form 16, ITR for the last two years and bank account statement of salary account in the case of salaried individuals.

Signature Proof: Bank account passbook of the concerned bank with photograph with signature attestation by a competent bank official.

Audited Financials along with Auditor’s Report for the last 2years, ITR with income computation for the last two years, and Bank Account statement of all operative accounts in the case of self-employed individuals/professionals are needed.

Property Documents: Copy of all related property documents.

Other documents: 2 Passport size photographs.

The following steps are involved in the transfer of the existing home loan balance to Kotak Mahindra Bank.

• Submit a request to the existing lender for transfer of the outstanding balance of the existing loan to Kotak Mahindra Bank. The content of the request letter should also contain an enquiry about the procedure to transfer the title deeds to Kotak Mahindra Bank upon closure of the existing loan. 
• A foreclosure letter with details of the outstanding balance of the existing loan along with confirmation of the property documents held by them should be obtained from the existing lender.
• The existing lender will review your request and issue NOC as well as a foreclosure letter.
• Submit a home loan transfer application to Kotak Mahindra Bank enclosing the NOC and the foreclosure letter.
• You should also request the bank to transfer the loan proceeds directly to your home loan on disbursal.
• Kotak Mahindra Bank will appraise your proposal and, if approved, will disburse the amount and credit the proceeds directly to your existing home loan through RTGS.
• The existing lender will close the home loan account, release the charge on the property and hand over the property documents to Kotak  Mahindra Bank.
• All the remaining PDCs or standing instructions will be cancelled by the existing lender.
• The home loan balance transfer will be completed with the cancellation of standing instructions.
• You can continue to pay the EMIs directly to Kotak Mahindra Bank subsequent to the transfer.