Kotak Mahindra Bank Personal Loan Foreclosure Charges (2026)
Kotak's published MITC lists foreclosure charge slabs based on loan amount, paid tenure, and source of funds. It allows a limited part-payment facility after 12 months for eligible loans, with a per-instance fee. These terms can vary by agreement and customer onboarding date; get a current quote before paying.
Kotak Bank personal loan foreclosure charges at a glance
| Foreclosure charge | 4% + taxes up to 3 years; 2% + taxes after 3 years, subject to own-funds terms |
|---|---|
| Part-prepayment | For loans disbursed after 1 February 2020, the linked MITC allows one part-payment a year after 12 months, up to 20% of principal outstanding; ₹500 + taxes per request. Loans disbursed on or before that date are listed as ineligible for part-payment. |
| Lock-in / when allowed | The linked MITC says there is no lock-in after the first EMI; its part-payment facility has a 12-month seasoning requirement. |
| Official fee schedule | Kotak Personal Loan — Most Important Terms & Conditions (PDF) · verified 2026-10-06 |
Charge breakdown
- Published MITC: 4% + taxes on principal outstanding up to 3 years; 2% + taxes after 3 years.
- For loan amount above ₹10 lakh, the MITC lists ₹999 + taxes when closed from own funds after 12 months.
- Terms can vary by agreement and customer onboarding/disbursement date; obtain a current quote.
Check the current RBI rule for your lender[RBI Master Directions index]
RBI prepayment-charge instructions are set out in lender-category-specific Master Directions. For covered floating-rate loans to individuals for non-business purposes, charge eligibility depends on the applicable direction, loan dates, and rate type on the prepayment date. Check the direction for your lender and your loan documents.
The standalone RBI prepayment notification issued in 2025 has been withdrawn. Prepayment-charge instructions are set out in lender-category-specific Master Directions. Find the direction for your lender and check its scope against the sanction or renewal date, borrower type, loan purpose, rate type, and loan documents.
How to foreclose a Kotak Bank personal loan
Raise a closure request via Kotak app/net banking or branch, pay outstanding + charge, obtain NOC.
How to compare a foreclosure quote
Request the lender's dated closure quote and compare it with the future payments under your current schedule. A simple estimate is (scheduled EMI × remaining payments) − current principal, but it assumes the EMI and rate stay unchanged and excludes other fees or insurance. Include all quoted charges and taxes, and consider the value of keeping the cash available. This arithmetic is a screening estimate, not a substitute for the lender's settlement figure.
Worked example
Suppose 12 scheduled EMIs of ₹45,000 remain. Those payments total ₹5,40,000. If the lender's dated closure quote, including applicable charges and taxes, is ₹5,10,000, the nominal cash outflow difference is ₹30,000.
This is only a screening comparison: it does not account for the time value of cash, insurance refunds, or other costs that are not included in the quote.
Related tools & guides
Sources & References
Legal basis: RBI (Pre-payment Charges on Loans) Directions, 2025 (issued 2 July 2025, applicable to loans sanctioned or renewed on or after 1 January 2026); individual bank fee schedules as published.
Official sources
Last verified against official sources: July 2026. Figures are researched from the government sources above and checked before publishing. See our Editorial & Verification Policy.
This page is for informational and educational purposes only. Charges are researched from the lender's published fee schedule and can change at the lender's discretion — always confirm against your sanction letter and the bank's current schedule before acting. This is not financial advice.
Frequently Asked Questions
What is the Kotak personal loan foreclosure charge in 2026?
The linked MITC lists 4% plus taxes on outstanding principal up to 3 years and 2% plus taxes after 3 years. For loan amount above ₹10 lakh, it lists ₹999 plus taxes when closed from own funds after 12 months. Terms are subject to the loan agreement; obtain a current quote.
What does Kotak charge for part-prepayment?
The linked MITC allows one part-payment a year after 12 months for loans disbursed after 1 February 2020, up to 20% of principal outstanding, with ₹500 plus taxes per request. It lists loans disbursed on or before that date as ineligible for part-payment.
When can I foreclose a Kotak personal loan?
The linked MITC says there is no foreclosure lock-in after the first EMI. The part-payment facility has a 12-month seasoning requirement. Confirm your own agreement and use Kotak's current loan-servicing instructions.
Is Kotak personal loan foreclosure free under RBI rules?
For covered lenders, the RBI Directions prohibit charges on floating-rate loans to individuals for non-business purposes sanctioned or renewed on or after 1 January 2026. For dual or special-rate loans, the rate type on the prepayment date matters. Check your loan documents.