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Personal Loan · Bank review

Kotak Mahindra Personal Loan

Kotak Mahindra Bank offers personal loans through a largely digital journey, with pre-approved offers for existing customers. Its starting rate is a little above the cheapest banks we track, and its published fee and prepayment charges are on the higher side, so Kotak is worth choosing mainly when your own quote beats the alternatives. Below are Kotak's published terms, a worked example and what the charges mean in rupees.

By FinancePaisa Editorial Team · Research & editorialUpdated · 4 min read

Rates checked against the lenders' official pages on 28 September 2026. Your actual rate depends on your profile; confirm with the lender before you apply.

Official rate pages: Kotak Mahindra

Interest rate
10.99% p.a.

How it compares: a starting rate of 10.99% is 0.99 percentage points above the median of 10.00% across the 6 lenders we track for this product. Starting rates go to the strongest applicants; compare the rate you are actually quoted.

On this page (9 sections)

Key terms

  • Interest rate

    Kotak Mahindra Bank
    From 10.99% p.a.

  • Processing fee

    Kotak Mahindra Bank
    Up to 5% of the loan + taxes, deducted at disbursal

  • Prepayment (full or part)

    Kotak Mahindra Bank
    4% + taxes on the outstanding principal up to 3 years; 2% + taxes after 3 years

  • Lock-in

    Kotak Mahindra Bank
    None after the first EMI

  • EMI bounce

    Kotak Mahindra Bank
    ₹750 per instance, including taxes

  • Penal charge on overdue

    Kotak Mahindra Bank
    8% a year plus taxes on the overdue amount

Worked example: why the fee matters

Take ₹5 lakh over 60 months at the starting rate of 10.99%. The EMI is ₹10,869 and the interest ₹1,52,123. The fee changes the picture. At 2%, ₹11,800 including GST is deducted and the effective annual cost is about 12.04%. At the 5% maximum, ₹29,500 is deducted, you receive only ₹4,70,500, and the effective cost rises to about 13.68%, well above the headline rate. Ask for the fee in writing and compare the APR in Kotak's Key Facts Statement with other offers.

What prepaying costs

Kotak has no lock-in after the first EMI, but charges for prepayment. Closing the loan above after 24 EMIs, with about ₹3,32,032 outstanding, costs about ₹15,672 at 4% plus GST and saves ₹59,242 of future interest. After 3 years the charge drops to 2%: closing after 37 EMIs, with ₹2,24,485 outstanding, costs about ₹5,298 and saves ₹25,495. If you expect to prepay, lenders with a nil charge after a year, such as ICICI, may cost less overall.

How Kotak compares with other banks we track

Starting rates and fees from each bank's own website. Compare the APR in each Key Facts Statement for your actual offer.

  • HDFC Bank

    Starting rate
    9.99%
    Processing fee
    Up to ₹6,500 + GST
    Rate checked
    11 Oct 2026

  • SBI (Xpress Credit)

    Starting rate
    10.00%
    Processing fee
    Up to 1.5% (₹1,000 to ₹15,000) + GST
    Rate checked
    28 Sept 2026

  • ICICI Bank

    Starting rate
    9.99%
    Processing fee
    —
    Rate checked
    28 Sept 2026

  • Axis Bank

    Starting rate
    9.99%
    Processing fee
    1.5% to 2% + GST
    Rate checked
    28 Sept 2026

  • Kotak Mahindra

    Starting rate
    10.99%
    Processing fee
    —
    Rate checked
    28 Sept 2026

  • IndusInd Bank

    Starting rate
    10.49%
    Processing fee
    3.5% (1.5% to 2% during offers)
    Rate checked
    28 Sept 2026

Who a Kotak personal loan suits

  • Existing Kotak customers with a pre-approved offer at a competitive rate and a low fee.
  • Borrowers who plan to keep the loan to term, so the prepayment charge never applies.
  • Applicants who want a fully digital process with video KYC.

Watch out for

  • The processing fee can be up to 5%; on a large loan that is a significant amount taken off the money you receive.
  • Prepayment is charged for the whole tenure: 4% in the first 3 years, 2% after.
  • Bounce and penal charges are higher than at some banks; keep the EMI account funded.

How to apply

Existing customers can check pre-approved offers in the Kotak app or net banking. New customers apply on Kotak's website with PAN, Aadhaar and income proof and complete video KYC. Read the Key Facts Statement for the fee, rate, insurance and prepayment terms before you e-sign.

Frequently asked questions

Are Kotak's prepayment charges higher than other banks?

They are on the higher side: 4% of the outstanding in the first 3 years and 2% after, plus taxes. ICICI, by comparison, charges nothing for foreclosure after 12 EMIs.

Is there a lock-in period?

No lock-in after the first EMI. You can prepay any time after that, subject to the prepayment charge.

Can I get a Kotak personal loan without a Kotak account?

Yes. New-to-bank applicants can apply online. Existing customers usually get faster approval and may see pre-approved offers.

Is Kotak as safe as HDFC or ICICI?

All three are RBI-regulated scheduled commercial banks. Choose on rate, fees and prepayment terms rather than perceived safety.

Sources & references

Rates, fees, eligibility, and product terms cited on this page reflect the sources above at the time of publication and may have changed since. Always verify directly with the lender or regulator.

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