How to foreclose your Kotak Mahindra Bank personal loan? A step-by-step guide | Mint

Personal loans are a popular choice amongst people who are looking for instant funds for an upcoming event or for an emergency. These loans provide instant loan disbursement with a flexible repayment tenure and no collateral which makes it an ideal choice for many who do not own assets but require a loan.

If you have an ongoing Kotak Mahindra Bank personal loan and are considering foreclosing it, you can complete the process easily in simple steps. However, you must note that the bank will charge you foreclosure charges as applicable which you will be bound to pay.

Steps to foreclose Kotak Mahindra Bank personal loan

Step 1: Submit a foreclosure request

• Contact Kotak Mahindra Bank to start the foreclosure process for your loan.
• Use your verified email to submit your request for loan foreclosure.
• Complete 12 monthly EMIs before requesting a foreclosure because the bank allows foreclosures only after this minimum period.

Step 2: Serve the foreclosure intimation period

• After submitting your request, the bank requires you to serve a foreclosure intimation period of up to 30 days.
• During this time, the bank will issue a foreclosure statement, detailing the outstanding loan amount and any applicable charges.

Step 3: Submit pre-closure cheque

• Create and submit a pre-closure cheque payable to Kotak Mahindra Bank.
• Submit your clearance cheque at least seven days before your next instalment is due.

Step 4: Bank processes payment

• The bank marks foreclosure completed when it accepts the cleared payment.

Step 5: Receive closure documents

• Within 15 days of closing the loan, the bank will send you a No Objection Certificate and post dated EMI cheques (if any).

Step 6: Verify pre-closure details

• Verify that the bank’s foreclosure document matches your foreclosure payment details.
• Review the foreclosure statement to confirm the breakup of charges and ensure there are no discrepancies.

Foreclosure charges by Kotak Mahindra Bank

Note: The foreclosure charges may vary depending on the updated rules and regulations of the bank. Hence, for updated charges, visit the bank’s website.

In conclusion, repaying your personal loan can be a great way to avoid any long term financial burden. However, you must understand and evaluate the charges and fees involving your personal loan foreclosure. This way you can easily determine whether foreclosing the loan will be beneficial to you or not.

You must also ensure that you pay your EMIs on time and do not make a single default in repayment as this can adversely affect your credit score. This can reduce your chances of getting better deals in the future. Paying your EMIs on time can help you build a strong credit profile.

(Note: Raising a loan comes with its own risks. So, due caution is advised)