How Attractive Kotak Mahindra Bank Personal Loan Is Compared to Its Competing Products?
Kotak Mahindra Bank is growing fast into a competitive bank across the products and services. It has managed to carve a niche for itself in the personal loan segment with simple documentation and customized offers. It competes against the heavyweights SBI, ICICI, HDFC on one side and slogs against its other competitors - YES Bank, Axis Bank and IndusInd Bank - on the other side. So, how will you weigh Kotak Mahindra Bank Personal Loan compared to others? Well, you must weigh based on factors such as the loan amount, interest rate, Processing Fee, etc.
Factors to Consider While Comparing Kotak Mahindra Bank Personal Loan Interest Rates
Loan Amount - The quantum of loan is an important factor that can help you compare Kotak Mahindra Bank Personal Loan rates better. It can offer loans up to ₹15 lakh based on your overall eligibility. In comparison, SBI, ICICI, Axis, HDFC, YES Bank and IndusInd Bank offer loans up to ₹15 lakh, ₹20 lakh, ₹15 lakh, ₹40 lakh, ₹40 lakh and ₹15 lakh, respectively.
Interest Rate - The rate of interest would determine the cost of the loan. It’s a vital factor to consider while applying for a personal loan. Kotak Mahindra Bank Personal Loan interest rates can range from 10.99%-24% per annum. The country’s largest lender SBI offers the loan at 12%-15.40% p.a. Private biggies like ICICI Bank and HDFC Bank charge an interest rate of 11.25%-17.99% and 15.50%-21.50%, respectively. Axis Bank, YES Bank and IndusInd Bank offer the loan at 16%-24%, 10.75% onward and 11.25% onward, respectively.
Processing Fee - The processing fee is a portion that you need to pay upfront to the lender. It can either be a flat amount or come as a certain percentage of the loan amount. Above which, the GST would be levied at the applicable rate. The GST is a government levy and thus can’t be compensated on. Kotak levies a processing fee up to 2.50% of the loan amount + GST. SBI, ICICI and HDFC charge 1% of the loan amount + GST, up to 2.25% of the loan amount + GST and up to 2.50% of the loan amount + GST. However, the minimum and maximum fee at HDFC amount to ₹1,999 and ₹25,000. While YES and IndusInd charge a fee at up to 2.50% of the loan amount + GST, Axis charges up to 1.50%-2% of the loan amount + GST.
Has Kotak Stood Out in the Competition?
As far as interest rates are concerned, Kotak is competitive enough to stay in the mainstream. The rates shown above are range bound. In terms of minimum rate, Kotak wins as it offers the lowest on that count with 10.99% compared to its competitors. But the maximum rate is 24% at par with that of Axis. The maximum rate charged by others is at least 2%-3% lower than Kotak and Axis. On the loan amount also, Kotak combats the competition by offering up to 15 lakh that’s offered by most with an exception of one or two that offers beyond that. Even as the processing fee is heavily contested, Kotak with a fee up to 2.50% of the loan amount plus GST somewhat remains at par with its competitors on the said aspect.
So, whatever lender you choose for a personal loan, make sure you do a projected calculation of the installment and the extent of interest liability over the course of the debt. You can check the personal loan EMI calculator to do the calculation. The calculator would require entering the loan amount, tenure and interest rate at the prescribed space to figure out the same.
Factors to Consider While Comparing Kotak Mahindra Bank Personal Loan Interest Rates
Loan Amount - The quantum of loan is an important factor that can help you compare Kotak Mahindra Bank Personal Loan rates better. It can offer loans up to ₹15 lakh based on your overall eligibility. In comparison, SBI, ICICI, Axis, HDFC, YES Bank and IndusInd Bank offer loans up to ₹15 lakh, ₹20 lakh, ₹15 lakh, ₹40 lakh, ₹40 lakh and ₹15 lakh, respectively.
Interest Rate - The rate of interest would determine the cost of the loan. It’s a vital factor to consider while applying for a personal loan. Kotak Mahindra Bank Personal Loan interest rates can range from 10.99%-24% per annum. The country’s largest lender SBI offers the loan at 12%-15.40% p.a. Private biggies like ICICI Bank and HDFC Bank charge an interest rate of 11.25%-17.99% and 15.50%-21.50%, respectively. Axis Bank, YES Bank and IndusInd Bank offer the loan at 16%-24%, 10.75% onward and 11.25% onward, respectively.
Processing Fee - The processing fee is a portion that you need to pay upfront to the lender. It can either be a flat amount or come as a certain percentage of the loan amount. Above which, the GST would be levied at the applicable rate. The GST is a government levy and thus can’t be compensated on. Kotak levies a processing fee up to 2.50% of the loan amount + GST. SBI, ICICI and HDFC charge 1% of the loan amount + GST, up to 2.25% of the loan amount + GST and up to 2.50% of the loan amount + GST. However, the minimum and maximum fee at HDFC amount to ₹1,999 and ₹25,000. While YES and IndusInd charge a fee at up to 2.50% of the loan amount + GST, Axis charges up to 1.50%-2% of the loan amount + GST.
Has Kotak Stood Out in the Competition?
As far as interest rates are concerned, Kotak is competitive enough to stay in the mainstream. The rates shown above are range bound. In terms of minimum rate, Kotak wins as it offers the lowest on that count with 10.99% compared to its competitors. But the maximum rate is 24% at par with that of Axis. The maximum rate charged by others is at least 2%-3% lower than Kotak and Axis. On the loan amount also, Kotak combats the competition by offering up to 15 lakh that’s offered by most with an exception of one or two that offers beyond that. Even as the processing fee is heavily contested, Kotak with a fee up to 2.50% of the loan amount plus GST somewhat remains at par with its competitors on the said aspect.
So, whatever lender you choose for a personal loan, make sure you do a projected calculation of the installment and the extent of interest liability over the course of the debt. You can check the personal loan EMI calculator to do the calculation. The calculator would require entering the loan amount, tenure and interest rate at the prescribed space to figure out the same.
Comments
Post a Comment