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Having a significant hold in retail, private and wholesale banking ING Vysya Bank Ltd is a premier bank under private sector which serves more than two million customers. With leveraging ING’s global financial expertise for more than 80 years in India, it offers a wide range innovative products and services at 547 branches across the country.
One can get a trouble-free home loan from this bank in all the cases, may it be a new construction or purchasing a built house or flat, refinancing existing loans is also an option. Along with attractive interest rates bank offers a bundle of benefits which ensures the realization of your cherished dream of owning a house.
ING Vysya Bank is now Kotak Mahindra Bank
After acquiring ING Vysya Bank Ltd, Kotak Mahindra Bank has succeeded in establishing itself as the fourth largest private sector banks in India with having the new entity to be named Kotak Mahindra Bank. Hence, all the banking products have hitherto been offered by the ING Vysya Bank Ltd will now be taken as offerings from the Kotak Mahindra Bank. The applicants who are looking for ING Vysya Bank Ltd Home Loan need to apply for Kotak Mahindra Home Loan.
Kotak Mahindra Bank Home Loan is available in many variants
1. Kotak Flexi Home Loan: It is a unique product offered by Kotak Mahindra Bank which is designed by the bank especially for the protection of the customers from the volatile interest rates. Unlike loans with fixed rate of interest, the loans with floating rate of interest are generally very volatile owing to frequent unpredictable changes in the market rate.
This loan protects the customers from any uncertain rise in interest rates, which means the customers need not pay more if there is any sudden change in the rate of interest in the market. Under this scheme, the interest rate remains fixed for first three years of advance and after the completion of this period, it is re-fixed for the next three years based upon the existing index rate. The process of fixation of interest rates is continued until the end of the loan period.
The effect of any alterations in index rate (Kotak Mahindra 1 year Retail Deposit Rate or Kotak Mahindra Bank home finance RPLR) on the Kotak Mahindra Flexi Home Loan will be effective only after completion of the period of three years. In nutshell, along with the option of flexible/ floating interest rate, this loan provides a certainty of fixed interest rate even if the interest rates changes.
2. Kotak Fixed Deposit Linked Home Loans: This is an innovative loan offered by Kotak Mahindra Bank in which the interest rate is charged taking into consideration the Kotak Mahindra’s one-year retail deposit rate and not RPLR (Retail Prime Lending Rate). The rate of interest on the loan will change only if there is any change in bank’s retail deposit rate of one year. As per the name of the product, the customers need not maintain any fixed deposit with the bank.
3. Kotak Home Improvement Loans: With addition to conventional home loans, the Kotak Mahindra Bank provides home loans for other purposes also, like renovation of house, extension of premises/ decoration, furnishing, construction and other activities, which are meant for the improvement of the house, owned by the customers and may include tiling, waterproofing, etc.
4. Kotak Mahindra Bank Home Loan Balance Transfer: By this facility the bank enables the customers to get them their account transferred to Kotak Mahindra Bank from any other financial institution or bank.
5. Kotak Mahindra Bank Home Loan for NRI (Non-Indian Resident) applicants: The Kotak Mahindra Bank lends house loans to the NRIs also for the purchase of house or renovation of existing property owned by them but with adherence to certain eligibility and conditions of the bank.
Kotak Mahindra Bank Home Loan Interest Calculations (May 2017)
- Interest rate: 8.6% to 8.95%
- Borrow up to 60% of property’s market value
- Lowest EMI: Rs 874 per lakh
- Tenure Range: 1 to 20 years
- Nil charges for prepayment of floating rate loans
- Age Limit: Min 21 years and maximum 60 years for salaried and 65 years for self-employed.
Kotak Bank Floating Rate Home Loans
- Upto Rs. 2,50,000: 8.60%-8.95%
- 2,50,001 to 10,000,000: 8.60%-8.95%
- 10,000,001 to 30,000,000: 8.60%-8.95%
- Above Rs. 30,000,000: 8.60%-8.95% linked to 1 Year MCLR.
How do you close ING Vysya/Kotak Mahindra Bank home loan through Creditseva?
Closure of home loan does not only relieve the borrower from the debt but also gives him/her the complete title of the property for which the loan has been obtained. Hence, this matter needs to be dealt with utmost care and diligence. With respect to the steps which need to be followed for the closure of loan, a strict adherence to guidelines is must if ING Vysya/ Kotak Mahindra Bank home loan is to be closed. For this purpose, Creditseva provides you dedicated assistance for the closure of your home loan with ING Vysya/ Kotak Mahindra Bank.
You need to follow the below-mentioned steps:
- Sign in/ up to your Creditseva user account
- Follow the guidance provided by the experts
For successful closure of home loan with ING Vysya/ Kotak Mahindra Bank, borrowers should follow the guidelines of our esteemed advisors. Hassle-free closure of your ING Vysya/ Kotak Mahindra Bank home loan is assured by Creditseva.
The closure can be carried out in four ways:
1. Closure through prepayment of Loan
2. Closure through completion of loan tenure
3. Closure on account of bad loan
4. Closure through the settlement of the loan.
Home Loan Closure by Prepayment
It can be done by following certain steps, which are mentioned below:
Step 1- Personal Visit: Borrower needs to visit any of the ING Vysya/ Kotak Mahindra Bank branch according to work-hours of the home branch only. It is advisable to visit the branch on weekdays for faster process of home loan closure.
Step 2- Meet the Representative: You will be subjected to mandatory checks and few formalities. The procedure can be time-consuming. Make sure you discuss every detail with the representative.
Step 3- Disclosure form: You may be asked by the representative to fill up a disclosure form, which needs to be mentioned in the sources of income by which pre-closure is being done. Approximates can be applied rather than going for exact values.
Step 4- Cheque for pre-payment: After calculating the pre-payment amount, a cheque in the favor of Kotak Mahindra Bank needs to be drawn, this has to be handed over to the representative.
Step 5- Receipt of payment: A receipt for the payment made with a cheque is handed over to the borrower which essentially means that he has paid the loan amount in full.
Step 6- Amortization sheet: The borrower can ask for amortization sheet from the representative. This sheet provides details of the EMI paid. The same can be downloaded from the home loan portal of Kotak Mahindra bank’s official website. The borrower can also ask the representative for an email copy of the same.
Step 7- Collection of property deed: The property deed is sent to the Kotak Mahindra Bank by the registrar after 10 to 15 days which can be further collected from the concerned branch.
Home Loan Closure by Loan Tenure Completion
The borrowers can initiate closure of the home loan after they have paid the last EMI. In such a case, the borrower needs to send a letter/ application by post for the closure of home loan with ING Vysya/Kotak Mahindra Bank. The documents should be attached with the proof of payment of last home loan EMI.
Closure because of a Bad Home Loan
The repayment of a home loan tends to be doubtful if a borrower becomes bankrupt. Such loan in the books of ING Vysya/Kotak Mahindra Bank is taken to be of default until proceedings are made for writing the loan off. These loans are generally written off as bad loans. In such a case, you can post a written loan closure application to the concerned bank branch or visit the nearest ING Bank branch for further assistance.
- The home loan status of the borrower is changed from ‘default’ to ‘settled’.
- The statement of account, which reflects the deposits and withdrawals in the concerned account, will show the bad loan settlement as written off.
- In the event of bankruptcy, when the loan is closed because of a bad loan, then your CIBIL score will be negatively affected, becoming lower than what it was.
Home Loan Closure by Settlement of Loan
In case you are unable to pay the EMIs regularly, you can close the home loan by opting for loan settlement. Bank usually takes 3 months to assess the borrower’s repayment recoverability. In the event of the amount is irrecoverable, it is noted as NPA (Non-Performing Asset) in the books. Now, until the loan is settled, you will be considered as a defaulter.
The loan can be settled further by sending an application to Kotak Mahindra Bank branch or visiting the concerned bank branch. The process generally hampers your CIBIL score, but it is possible to repair your credit score with sound financial practices in the future.
- The statement of account will show restructuring of the loan, prepayment of the outstanding loan or reimbursement of the investment.
- The CIBIL of the borrower is affected negatively and the score falls in the official records. Now, if the previous EMIs were paid on time then the CIBIL score may rise.
Sample letter for closure of ING Vysya Bank Ltd (now Kotak Mahindra Bank)
The Bank Manager
Kotak Mahindra Bank
[Address of the branch with which the loan is held]
Subject: Home loan closure request
I ……….., had a home loan issued under my account number ………………… which has been repaid successfully by me. All dues have been cleared. I have attached the proof of last EMI payment against the loan; hence I request you to further initiate the closure of the loan held by me with you and deliver me a letter of acknowledgement authorizing the successful closure of the loan. The following documents shall be due for collection after closure acknowledgement:
- Original Property Documents
- Loan closure certificate or NOC/NDC
- CIBIL score update
(Your name …….).
Documents You Will Receive after Closure of Home Loan
After writing a letter or application to the bank for home loan closure, you will receive the below mentioned important documents:
1. Property Deed: It is an important document, which shows your title over the property/ home. It will contain documents like, sale deed in original, payment receipts, cancelled cheques, POA, possession letters, etc. It is an important document if you want to sell the property later or take a loan against property.
2. Loan Closure Certificate (LOC) or No Dues Certificate (NDC) No Objection Certificate (NOC): This document signifies that you have cleared the loan amount along with the interest paid and the bank will have no claim over your property anymore.
3. CIBIL Score: The CIBIL score is updated 28th of every month in which the details of the payments made by the borrower to the bank are shared and hence the closure of home loan may affect your CIBIL score. This may also lead to lowering of the CIBIL score for next 6 months. A favorable credit score is very important if you seek financial assistance by the bank /NBFCs in future.
Precautions to Take
After completion of the home loan closure with the bank, you must perform following functions:
1. Original documents: You will have to ensure collection of the following necessary original documents back:
- No Objection certificate or No Due Certificate
- Original title document and deed
- Original or certified copy of title deed of the previous owner
- Approved layout issued by the government authority
- Property tax receipt in original or copy
- Statement of account of loan which reflects the various details of loan including interest payments
2. Removal of Lien: A lien is a transaction registered with the registrar of properties which prevents the borrowers from selling the concerned property before clearance/ repayment of the home loan. As soon as the lien is removed, the owner is authorized to sell the property. Hence, you need to know if any lien stands against the property and get it removed as soon as possible from the bank.
3. Encumbrance Certificate (EC): An EC has all the financial transactions, which were performed under the name of the property. This certificate is issued by the registrar, which certifies property to be debt/ lien free.
4. Lawyer Clearance Certificate: This certificate is treated to be the second opinion for the property which again verifies the property to be debt free. It is very useful when the sale of the property is to be made.
ING Vysya Bank Home Loan Closure FAQs:
1. When should one visit the bank to initiate home loan closure?
Weekdays are best suited for a loan closure proceeding. You should try avoiding Mondays or any day after a public holiday as it witnesses more rush in the bank premises.
2. Does the prepayment of a home loan bring upon the borrower any charge or penalty?
Yes, loan prepayment is subject to applicable prepayment charges and prepayment penalties. These charges are generally not taken in case of floating rate of interest.
3. What are other important things to carefully study for a successful loan closure?
- Principal and interest statement (Amortization table)
- Home loan statement showing EMI payment
- Final home loan closing statement.
4. Can I prepay home loan by any other way with ING Vysya/Kotak Mahindra Bank?
Yes, loan repayment can be accelerated through Accelerated Repayment Scheme and other available ING VYSYA/KOTAK MAHINDRA BANK repayment options.
5. What are the charges on delayed payments of EMIs on a home loan?
Delayed repayment is charged with additional interest at up to 24% per annum.
6. How long does it take home loan closure to affect a consumer’s CIBIL score?
It generally takes a time of 3 months from the date of closure to affect your CIBIL score.
7. After how much time will ING Vysya/Kotak Mahindra Bank share CIBIL score update with the borrowers?
A month after the credit score has been updated.
8. When can you download the amortization sheet from the bank’s website?
The amortization sheet can be downloaded from the home loan closure portal of Kotak Mahindra Bank after the expiry of a month from the date of home loan closure.
9. Will the bank take responsibility for any loss or damage of home property deed file during courier?
No, the ING Vysya/Kotak Mahindra Bank shall take no responsibility. You should preferably always opt to pick it up from the bank instead of having the property deed couriered to self.
Home Loan Closure By Banks
- Home Loan Closure
- HDFC Bank Home Loan Closure
- ICICI Home Loan Closure
- SBI Home Loan Closure
- Andhra Bank Home Loan Closure
- Kotak Bank Home Loan Closure
- ING VYSYA Bank Home Loan Closure
- Jammu and Kashmir Bank Home Loan Closure
- Karnataka Bank Home Loan Closure
- Karur Vysya Bank Home Loan Closure
- Lakshmi Vilas Bank Home Loan Closure
- LIC Home Loan Closure
- Magma Fincorp Home Loan Closure
- Sundaram BNP Paribas Home Finance Loan Closure
- Cosmos Bank Home Loan Closure
- State Bank of Hyderabad Home Loan Closure