What is Kotak Bank Personal Loan Foreclosure Charges?

Wondering about Kotak personal loan foreclosure charges? Kotak Mahindra Bank offers personal loans with various terms and conditions, including provisions for foreclosure, which is the repayment of the entire loan amount before the completion of the loan tenure. Understanding the foreclosure charges is crucial for borrowers who plan to repay their loans early.

What are Kotak Loan Foreclosure Charges?

The foreclosure charges for Kotak Bank personal loans generally range from 4% to 5% of the outstanding principal amount, plus applicable taxes such as GST. These charges are calculated based on the principal amount outstanding at the time of foreclosure.

Kotak Mahindra Bank typically allows borrowers to foreclose their personal loans after a minimum lock-in period of 12 months from the date of loan disbursement. This period ensures that the bank recovers a portion of the interest that would have been earned over the loan tenure.

As per recent policies, the standard foreclosure charge is around 5% of the outstanding principal amount. However, these rates can vary, so borrowers should confirm the exact percentage with Kotak Mahindra Bank.

To initiate the foreclosure process, borrowers need to submit a formal request to Kotak Mahindra Bank. It is advisable to consult with the bank to understand the exact amount payable and any other terms associated with the foreclosure.

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If a borrower has an outstanding principal amount of ₹3,00,000 and wishes to foreclose the loan, and the foreclosure charge is 5%, the fee would be: Foreclosure Charge=5/100×3,00,000=₹15,000

Including applicable taxes, the total foreclosure cost might increase, so borrowers should be prepared for this additional expense.

It is advisable to verify the exact foreclosure charges and terms with Kotak Mahindra Bank to ensure accurate and up-to-date information. This is all about Kotak Bank personal loan foreclosure charges.

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Hi there. I availed a personal loan around five months back. During that time, I had to pay the foreclosure fee, which is a non-refundable amount that one needs to pay alongside the loan application. Let me share the Kotak personal loan foreclosure charges to resolve your query. 

What are the Kotak Bank Personal Loan Foreclosure Charges?

1. Up to 3 years - 4% + GST on outstanding principal

2. After 3 years - 2% + GST on outstanding principal

3. For loans over 10L rupees: Rs. 999 plus applicable taxes after the completion of the lock-in period (only if closing through own funds). Applicable only for Sanction Letter issued on or before 21st June 2023. Here are the terms and conditions:

• Foreclosure fee of Rs. 999 along with applicable taxes for foreclosing from own source of funds. The cheque will be accepted only from your personal bank account. Moreover, your name should be present on the cheque as well as the bank statement with a sufficient balance to gain the service.

• You need to submit a copy of this sanctioned email or letter during the time of foreclosing the loan.

• If you avail of the FC 999, plus applicable taxes, the bank will not accept net banking transfers (RTGS/NEFT/IMPS, etc).

• The most recent three-month salary account statement is to be submitted, and you should not have taken another loan in these three months to gain benefit from this offer (FC 999/-). The decision taken by the bank will be final and binding in all regards.

I hope this helps!