How to Close Kotak Personal Loan?

Hi there, I saw you asking about how to close personal loan in Kotak Mahindra Bank and would like to offer you my help. To close your loan, you’ll have to contact the bank officials. There are several ways of personal loan closure, and I feel you should first know all the details, regarding the same. So, let me take you through them and then I’ll tell you the steps to close the loan, too.

What are the Different Types of Kotak Mahindra Personal Loan Closure?

Regular Closure: 

In such a closure, you close the loan in the period which is specified in the loan agreement. You pay your loan EMIs timely and the loan gets closed at the end of the loan tenure period. This is a simple method which occurs according to the loan agreement’s terms and conditions.

Pre-closure:

 

In case of a pre-closure, you end the loan before the loan tenure. You can opt for this closure if you believe you have excess money in your budget and can completely pay off the loan. You can do so after the completion of the loan lock-in period.

Bad Loan Closure:

This is a loan closure, which happens when the loan borrower defaults on their loan repayments. This is offered by the lender in case of bankruptcy or financial loss. This type of loan closure hurts your CIBIL score.

How to Do Kotak Personal Loan Close?

You can pre-close your Kotak personal loan after the payment of the first EMI. You also need to complete the lock-in period for issuance of foreclosure letters. You can then pre-close the loan by going to the nearest Kotak’s Retail Assets branch. Alternatively, you can call the bank’s customer centre on 18602662666 between 9:00 AM and 7:00 PM from Monday to Saturday. 

What are the Charges for Pre-closure of Personal Loan at Kotak Bank?

-Here are the charges for pre-closing your personal loan at Kotak.

This is all from my side. I hope this helps you learn how to close personal loan in Kotak Mahindra Bank.

Three years ago, I availed of a personal loan because I believed COVID was not going to end soon and I might face financial difficulties but thankfully, things became normal from 2023 onwards. I wanted to repay the loan as soon as I could. I visited the bank to ask the officials how to close Kotak Personal Loan and learned that it can only be done offline. There is no online provision for it. So I might not be able to share how to close Kotak Personal Loan online, but I can share the entire offline process here.

How to Pre Close Kotak Personal Loan?

To pre close your Kotak Personal Loan, here are some instructions you need to follow:

• 3 days foreclosure notification period is compulsory in this case

• You need to inform the bank at their helpline number: 1860 266 2666, about it. Note that this number is available from 9:00 AM to 6:00 PM from Monday to Saturday (excluding holidays)

• Once this notice period is complete, the foreclosure statement of the loan will be issued by the bank

• You will need to submit the entire loan amount via NEFT/RTGS or submit cheque by visiting the bank at least a week of your next loan installment

• Once you complete these steps, your loan closure will be visible in the bank records

• You will get the No Due Certificate (NDC) in your registered email ID within 2-3days of the termination of your loan account

• You will need to pay 4% plus applicable taxes as pre-closure charges

But do visit the bank to learn about the process again.

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