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Last Updated : Aug 13, 2019 02:52 PM IST | Source: Moneycontrol.com

Kotak Mahindra car loan: Eligibility, documentation, features and benefits

Kotak Mahindra Bank's car loans are available for both salaried & self-employed individuals with attractive interest rates. Click here to get Kotak bank car loan for new car & used car.

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One of India's leading private sector banks, Kotak Mahindra Bank, which is also known as Kotak Bank, offers financial solutions, which include car loans.

In case you're looking to buy a car, and need a loan for the same, you may want to consider Kotak Bank's car loans, as the bank offers you options for both new and used cars. In addition, Kotak Bank offers you top-up options for your car loan, as well as car lease, and dealer finance.

 

Why choose a car loan from Kotak Bank

Kotak Bank's car loans are available for both salaried and self-employed individuals. Furthermore, Kotak Bank offers attractive rates of interest for its customers availing a loan. To avail the car loan, you are required to be working for at least one year and drawing a salary of Rs 1.8 lakh per annum.

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In addition, Kotak Bank gives you up to 90 per cent of the car's ex-showroom price. You can also take a refinancing against your current vehicle, as long as you have paid off all your dues.

Furthermore, Kotak Bank’s EMIs ensure that you don’t have to shell out too much every month, thereby not burning a hole in your pocket.

Finally, Kotak Bank has simple and transparent documentation. You are required to provide basic documents such as income proof, photographs, income tax returns, etc. Once you submit these documents, a bank representative will come and cross-check your details at your workplace and registered address. During this period, you can also check the status of your loan online.

Features of a Kotak Bank Car Loan

Some of the key features of Kotak Bank's car loan are as follows:

-Attractive rates of interest, depending on whether you are purchasing a new or a used car -Finance options for different vehicles -Schemes that are tailormade to suit your need, depending on your requirements

-Kotak Bank has a dedicated website for its car loan product

Benefits of Kotak Bank Car Loan

-Seamless paperwork -Affordable EMIs that ensure you don’t get affected during the month

-Comparative interest rates

Loan for new car

Kotak Bank has several loan schemes so that your dream car can be a reality. These are the following product

-Margin Money Scheme -Step Up Scheme -Low EMI, Balloon Scheme

-Advance EMI Scheme

Margin Money Scheme

Margin Money Schemes offer the following

- Financial acquisition of up to 90 per cent of the ex-showroom price for certain car models

- The amount can be repaid between 12 months and 60 months

The Step Up Scheme offers the following

- You can increase your EMI after every year, six months or quarter (depending on your requirement)

- It's ideal for you in case you're looking to buy a luxury car

- Ideally, you can increase your EMI every year, as your income grows

In the case of Low EMI, Balloon Scheme, you can do the following

- Pay a reduced EMI for the entire tenure

- Pay anything between 10 per cent and 25 per cent of the car's cost as the last EMI

In the case of Advance EMI Scheme

- You can make the payment of the first few months upfront

- The balance payment is done through EMIs

- This way, you can pay your loan faster

Eligibility

In case of a salaried individual, you need to be

- At least 21 years old

- Not older than 60 years old at the time of loan maturity

- You should be earning not less than Rs 15,000 per month

In case of self-employed individuals

- The minimum age should be 21 years

- Maximum age at the time of loan maturity should be 65 years

- You should be at least a year in business

Documentation

For Salaried individuals

- Kotak Mahindra Bank Loan Application form

- Latest salary slips

- Form 16/IT returns

- Proof of residence: utility bills, passport, Aadhaar, Voter ID, Driver's licence (any one of the following)

- Proof of identity: Passport, Aadhaar, Voter id, Driver's licence (Any one of the following)

- Signed photographs

For self-employed individuals

- Kotak Mahindra Bank Loan Application form

- balance sheets of the last two years signed by Chartered Accountant

- I-T returns of the past two years

- Proof of residence: utility bills, passport, Aadhaar, Voter ID, Driver's licence (any one of the following)

- Proof of identity: Passport, Aadhaar, Voter id, Driver's licence (Any one of the following)

- Signed photographs

Kotak Bank loan for used car

When it comes to a used car, Kotak Mahindra Bank offers up to 90 per cent of the car value. These are the ways in which you can avail a loan for your used car from Kotak Mahindra Bank

Pre-approved loan

These are low-ticket loans up to Rs 1.5 lakh and require minimum documentation

Preferred segment loans

- You can avail a loan up to Rs 15 lakh, with the bank funding up to 90 per cent of the car's value

Approve your own loan

This scheme is available only for salaried individuals, with monthly instalments going up to 40 per cent of the net salary

- The loan amount is usually twice the value of your annual salary

Eligibility

In case of a salaried individual, you need to be

- A resident of India

- At least 21 years old

- Not older than 60 years old at the time of loan maturity

- You should be earning not less than Rs 15,000 per month

In case of self-employed individuals

- The minimum age should be 21 years

- Maximum age at the time of loan maturity should be 65 years

- You should be at least a year in business

Documentation

For Salaried individuals

- Kotak Mahindra Bank Loan Application form

- Latest salary slips

- Form 16/IT returns

- Proof of residence: utility bills, passport, Aadhaar, Voter ID, Driver's licence (any one of the following)

- Proof of identity: Passport, Aadhaar, Voter id, Driver's licence (Any one of the following)

- Signed photographs

- Copy of the car’s RC

- Copy of the vehicle’s insurance documents

- Valuation from a Kotak Bank-approved valuation agency

For self-employed individuals

- Kotak Mahindra Bank Loan Application form

- balance sheets of the last two years signed by Chartered Accountant

- I-T returns of the past two years

- Proof of residence: utility bills, passport, Aadhaar, Voter ID, Driver's licence (any one of the following)

- Proof of identity: Passport, Aadhaar, Voter id, Driver's licence (Any one of the following)

- Signed photographs

- Copy of the car’s RC

- Copy of the vehicle’s insurance documents

- Valuation from a Kotak Bank-approved valuation agency

Top-Up loans

Some customers can top-up their existing car loan, depending on important factors such as their repayment history and current credit score

Eligibility

We offer KPTR loan to all existing customers who are

- In the age group of 21 to 60 years (at the end of the tenure)

- Partnership Firms

- Public & Private Ltd. Companies, HUFs and Trusts

- Individuals who have successfully run a car loan with us for 12 months*.

 Checking your loan application

In case you want to track your application online, visit Kotak Mahindra Bank’s Car Loan website here.

At the top of the screen is a link to tracking your car loan application. Click on that and enter your number. You will then be directed to a new page where you will find out about your car loan application.

In case you want to conduct the process offline, call up Kotak Mahindra Bank’s car loan customer care number. You can also locate your nearest Kotak Bank branch here

Fees and charges
Cheque Dishonour Charges per Cheque750
Prepayment interest on Principal outstanding5.21% + taxes
Issue of Duplicate copy of Agreement / Duplicate NOC / NOC for Duplicate Registration Certificate750
Issue of Duplicate Security Deposite Receipt per Receipt250
Cancellation of Contract (other than foreclosure and prepayment interest) at specific request of the Borrower and agree by the Lender2000
Delayed Payment / Late Payment Charges / Compensation / Additional Finance Charges (Monthly)0.03
Collection Charges for non PDC cases (per cheque) for non-payment on due date500
PDC swap Charges500 per swap
Repayment Schedule / Account Outstanding Break up statement250
LPG / CNG NOC2000
Statement of Account500
NOC for Interstate Transfer1000
NOC for Commercial to personal use2000
Dishonour charges per instance750
NOC to convert from private to commercial5000 (Subject to approval)

FAQs

What happens if I default on my EMI?

If you default on your loan or miss an EMI, the bank will charge a penalty to you every month. Kotak Bank charges overdue charge per month if your miss your payments or don’t make your payments on time.

Is it important to have a good credit score while applying for a car loan?

Yes, you must have a good credit score to be eligible to apply for a car loan. The credit score of an applicant is a measure for the bank to decide how well-deserving the candidate is for a loan. If you have a habit of maintaining your financials and meeting your financial commitments timely, you are less likely to default on a loan. Therefore you are a good candidate for a loan. A credit score above 750 is considered good enough for a car loan.

Does a car loan have any tax benefit for the borrower?

No. Tax benefits are available to borrowers on education loan and housing loan alone. There are no tax benefits on car loans.

What are the features that decide the interest rate for a car loan?

Axis Bank decides what interest rate you have to pay based on your credit score, your income, your customer relationship with the bank and the car’s age and condition. If you have a credit score of 750 above, you will get a favourable interest rate. If your income is high, you are highly eligible for a car loan.

The interest rate will also depend on your income. If you have a good track record with your bank in terms of other loans or other products, you are likely to get a discount on the interest rate. Because the car being purchased acts as s collateral against the loan, the make, age and condition of the car are very important in determining the interest rates. If you default on your loan, the bank may seize your car.

Who can avail new car loans?

Anyone between the age of 21 years and 60 years for salaried(at the time of loan maturity), and 65 years (at the time of loan maturity) for self-employed individuals.

Which cars can be financed?

Kotak Bank finances most passenger cars manufactured in India by leading automobile companies. Vehicles that are imported can also be given loans, as long as they meet certain terms and conditions

How long is the tenure?

You can pay the loan from anything between one year and seven years

How long does it take to process the loan?

Within 48 hours of completing documentation. However, it's entirely up to the bank to decide whether you are eligible for the loan. For the same, you need to ensure you have the right documentation, and a good credit score.

Can I pay the entire loan amount?

You can prepay the loan any time after six months of availing the loan. You will have to pay a small prepayment fee on the outstanding loan amount. You also have the option of refiancing the same vehicle after completing a tenure, but this depends on certain terms and conditions

Is a guarantor required?

Usually it is not. However, if your income / age does not meet our credit criteria, then you may be required to have a guarantor to stand surety for your loan.

Can I generate cash against my existing car?

In case you own a car and have paid all your dues, you can generate cash by taking over your existing used car loan. However, this also depends on your track record.

I want to convert my car to a CNG vehicle. How do I get an NOC?

You will need to carry a request letter to your nearest Kotak Bank branch. Along with this, you need to carry a self-attested copy of your identity proof i.e. passport, PAN card, Aadhaar, driver's licence, and/or Voter id. You can also email the bank on service.carfinance@kotak.com and scan all your documents. Once you pay the amount of Rs 2,248, then you will receive a confirmation of the same. Kotak will then process the NOC and the same will be sent to you on your registered address in three working days.

How do I update my address under my loan account?

You need to send a written request along with a self-certified copy of the new address proof document to our Kotak Mahindra Prime office in your location. (Check Locate us section to get the address of location nearest to you) for carrying out the change in correspondence address of your loan account. You need to enclose any one of the following documents - Photocopy of electricity bill / Telephone bill /postpaid mobile phone bill/ Piped Gas Bill / Voter Id card /Aadhar card /Agreement for sale or Rent agreement along with landlord bill. (If the current residence is rented) as a proof of your current address. (All Utility bills , should not be more than two months old.) You need to self-attest the said address proof. Also a self-attested copy of signature proof is required which could be PAN card copy / Passport Copy/Driving License Copy along with Original Documents. Post receipt of the above mentioned documents, the new address will be updated in our records within 3 working days.

How do I update my mobile number or e-mail ID registered under my loan account?

You can login to Kotak Bank’s customer portal and create a service request for the same. Select Subject as Contact Details and update your new contact details and email ID and submit the request. Alternatively visit the nearest bank branch with a valid signature proof - PAN card copy / Passport Copy/Driving License Copy along with Original documents and submit an application for same. The bank will usually take three working days to process it.

What is a foreclosure report and how can I obtain the same?

A foreclosure report gives you the total outstanding amount that you have to pay in case you prematurely close your loan. You will be required to visit the nearest bank branch to obtain a physical copy of the report. You will be required to carry the following documents:
  • A request letter
  • A self-attested copy of your PAN card/ passport/driver’s licence/Aadhaar/voter id
  • Original documents.
The Charge for the foreclosure statement is Rs. 250plus GST. In case a bearer submits the request on your behalf, s/he needs to bring an authorised letter signed by you. In addition, the bearer needs to provide the necessary documentation including proof of identity.

How can I Prepay my Car Loan?

To facilitate prepayment of your car loan, you are required to visit the nearest bank branch along with the below mentioned documents to complete the prepayment process:
  • Request letter signed by you
  • Copy of Self attested PAN Card of the customer (For cash payment above Rs.50, 000).
  • Vehicle Registration Certificate (R C Book Copy)
  • Mode of payment can be cash, cheque or demand draft payable at par favouring the bank. However, do note that mode of payment can be cash subject to regulatory limits.
  • Customer's Self attested sign proof - PAN card copy/ Aadhar Card copy/Passport Copy/Driving License Copy. Also carry the original set of documents for verification.In case a bearer submits the request on your behalf, a bearer authorisation along with KYC documents

How can I obtain my un-banked PDC or Security cheques?

The unutilized post-dated cheque(s)/any other additional cheque(s) will be retained at our end and shall be destroyed after 45days from date of termination of contract unless a contrary request of return of cancelled cheque(s) shall be received from your end within 45 days of termination date. In case the Current Address is different than on records with us, we request you to get a self-attested Address Proof for same.
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First Published on Aug 13, 2019 02:52 pm
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