Personal Loan on Credit Card Facility (PLCC Facility)
(i) PLCC Facility may be made available to Cardholders at the sole discretion of the Bank based on the profile, credit behavior and any such other criteria that the Bank may determine.
(ii) The loan amount shall be disbursed and transferred to the Cardholder's account with the Bank/any other Bank accounts via NEFT/IMPS.
(iii) The loan will be available for such period as the Bank may decide. The rate of interest on the loan, the amount of transaction fees and the tenure for the payment of the EMIs of the loan and
other payment particulars will be specific to a Cardholder as decided by the Bank from time to time in its sole discretion and intimated to the Cardholder prior to disbursal of the loan.
(iv) The loan amount will be offered either by blocking the Credit Card Limit or over and above the existing credit card limit as per Bank's discretion.
(v) The Cardholder acknowledges that the interest rate applicable on the loan shall be as per the particular loan offer under the PLCC Facility. The amount of the EMIs of the loan together with
other details of the loan (including rate of interest, fees, etc.) shall be communicated to the Cardholder by the Bank.
(vi) Cardholder agrees and undertakes that the loan amount shall not be used for speculative, capital market investments or money laundering and/or anti-social purpose.
(vii) The Installment Facility will be subject to processing fee as may be specified by the Bank from time to time. The processing fee shall be debited from the Credit Card Account of the Cardholder
and shall form part of the minimum amount due appearing in the monthly statement.
(viii) Service Tax, GST, any / all applicable taxes from time to time (including applicable cess and surcharge) at the applicable rate will be levied on the interest / finance charges component, on the
processing fee, on the pre-closure fee, if any, and on any other billed financial charges / fees as may be applicable from time to time. The same shall be part of the Minimum Amount Due (MAD)
(ix) No request will be entertained to change/modify the Installment facility, once opted for by the Cardholder.
(x) The Bank reserves the right to change the tenure and interest rate during the term of the Installment Facility with due intimation to the Cardholder.
(xi) Monthly installment is calculated as (Principal Amount + Interest charge if any)/Tenure. The Bank's calculation of the monthly installment amount, which is reflected in the monthly Card Account
Statement, is final. Under no circumstance can the computation of the monthly installment amount be challenged/questioned by the Cardholder.
(xii) On availing ‘within the line’ loan facility the Credit Limit on the Credit Card will be blocked for the amount of loan availed / which gets converted to EMI at the time the Cardholder's request is
processed. The Credit Limit will be released as and when the Installment amount is billed and paid for in subsequent months.
(xiii) On availing ‘above the line’ loan facility the Credit Limit on the Credit Card will not be blocked.
(xiv) 100% of the processing fees, EMI amount and applicable taxes under the Installment Facility will be included as part of the minimum amount due appearing on the Card Account Statement.
(xv) Nonpayment or under payment of minimum amount due would attract normal late payment fees and an applicable interest rate on the unpaid billed EMI under the Installment Facility. For
details of the applicable interest rates on the different variants of the Cards, please refer Schedule of Charges, available at www.kotak.com.
(xvi) The Installment Facility will be cancelled / terminated when the Credit Card becomes delinquent or blocked before all the installments have been charged. The outstanding principal amount
will be moved back to the Cardholder's retail balance and would call for interest rate to be charged on the unpaid billed principal & unpaid billed monthly installments.
(xvii) The amounts converted to avail the EMI Facility or the loan availed under the PLCC Facility will not earn any reward points.
(xviii) Further payment of the total loan amounts under the Installment Facility shall not lead to an automatic closure of the said Installment Facility. The Cardholder shall be liable to pay prepayment
charges @ 4 % on the outstanding principal. To foreclose a loan, Cardholder needs to call up Bank’s Customer Experience Center and place a request for foreclosure of loan outstanding. The Bank
reserves the right to revise the prepayment charges at its discretion
(xix) The Bank reserves the right at any time, without previous notice, to add, modify or amend any of these terms and conditions or to withdraw the Installment Facility altogether.
(xx) In the event the Credit Card is closed prior to all the installments being charged, the outstanding availed under the Installment Facility shall be debited to the Credit Card Account as one
consolidated amount.
(xxi) Delay in the payment of any installments on their respective due dates shall attract the usual Credit Card late payment charge and interest on the unpaid installment.
(xxii) Any payment made into the Card Account over and above the EMI under the Installment Facility shall not be deemed to be payment towards the Installment Facility and the excess amount
shall be apportioned as per Clause 15.2(v) of the Cardholder Agreement.
(xxiii) The interest component for the first EMI shall be for 30 days irrespective of the Loan booking date. For ex. If the Loan booking is done on 5th of Jan’22 for INR 10,000 at 14% for 6 month &
the billing date is 20th Jan’22, EMI to be charged on the loan booking date will be INR 1735.38 with interest component of INR 116.67 (interest for 30 days instead of 15 days).
Fees & Charges
A one-time transaction fee upto 3.5% of the loan amount shall be charged for sanction of every Loan. This amount shall be billed to the monthly card statement as a part of the minimum amount
due in the month of first initial interest amount billing.
The rate on interest on the loan amount availed, will range from 11% to 25% per annum on reducing balance. The exact interest applicable will be mentioned upfront to the Cardholder at the time
of availing the loan.
4% prepayment charges will be levied on the outstanding principal in case of foreclosure of the loan. On foreclosing the loan, all outstanding including principal, pre-closure charge and the interest
on the loan, for the actual number of days till closure shall be debited to the Credit Card Account as one consolidated amount.
Government taxes (including service tax, GST, any/all applicable taxes) would be charged on interest, fees and other charges levied on your Credit card at the rates determined by Government of
India from time to time.
Illustrative example for computation of Loan EMI amount
For a loan amount of Rs. 1,00,000 with loan disbursal date on 1
st
June at ROI of 14% against a tenure of 12 months.
EMI amount will be =Rs. 8,978.71
(The EMI includes 1
st
month Interest of = 1,00,000*14%/12 = 1,166.67 & 1
st
month principal of 7,812.05)
The EMI will be billed as a part of the Minimum Amount Due (MAD) in the upcoming statement.
