Kotak Mahindra Bank Car Loan
Last Updated : May 20, 2017, 3:15 p.m.
You will always be wanting to buy the new car as it remains the dream for most of us. But, things don’t normally go as per your wish. It may happen that you won’t get fit into the eligibility criteria for new car loan. Either, your salary could turn out to be inadequate, or the experience in the job or the business may not be long enough to satisfy the bank to extend you the loan to buy the new car. So, the better idea is to take the second hand car on loan as the used model can be available at a much lesser price due to the sharp depreciation that causes a drop in the value of the car. In fact, used car market has gradually developed to become much bigger than the one for new car. Around 3 million used cars are sold compared to 2.2 million new cars in India. And as lenders are coming forward to offer loan for second hand cars, around two out of three car loan applications are for used models. There are many lenders you can approach for used car loan, including State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank, Kotak Bank, Bank of India, as well as other banks and non-banking finance companies (NBFCs). In this article, we will focus on the used car loan of Kotak Mahindra Bank, a private sector lender of India.
Features, fees & charges for Kotak Bank CL
- Minimum loan amount- Rs 1.5 lacs
- Maximum loan amount- Rs 15 lacs
- Upto 85% finance on the value proposed by the valuation officer
- Loan amount- upto 2 times of the annual salary
- Maximum loan tenure-5 years
- For salaried employee, monthly installments come to be 40% of net salary
- Interest rate-17%-20%
- Minimum processing fee- Rs 3,300
- Maximum processing fee- Rs 4,750
- Prepayment interest outstanding-5.21% plus service tax, if applicable
- Cheque dishonour charges- Rs 500
- Issue of Duplicate copy of Agreement / Duplicate NOC / NOC for Duplicate Registration Certificate- Rs 750
- Issue of Duplicate Security Deposit Receipt- Rs 250
- Cancellation of Contract (other than foreclosure and prepayment interest) at specific request- Rs 2,000
- Late payment charges- 3% per month
- Collection Charges for non PDC cases (per cheque) for non-payment on due date- Rs 500
- PDC swap Charges- Rs 500
- Repayment Schedule / Account Outstanding Break up statement- Rs 250
- LPG/CNG NOC- Rs 2,000
- Account statement charges- Rs 500
- NOC for interstate transfer- Rs 1,000
- NOC for commercial to personal use- Rs 2,000
- NOC to convert from private to commercial- Rs 5,000
After glancing at the features and charges, now check the eligibility criteria and documentation that you need to have to get used car loan from Kotak Mahindra Bank.
Eligibility Criteria for Kotak Mahindra Bank car loan
| Parameters | Salaried Professional | Self-employed |
|---|---|---|
| Age | 21-58 years | 21-65 years |
| Minimum Income | Minimum Salary of Rs 2.4 lacs per annum | As applicable by the bank |
| Employment/Business Continuity | At least 1 year of work experience | Been in the business for at least 1 year |
Documentation for Kotak Car Loan
| Proofs | Salaried Professional | Self-employed |
|---|---|---|
| Application Form with Photograph | Yes | Yes |
| Age Proof | Passport/PAN Card/ Voter ID card, Photo Driving License with birth date/Photo ration card with DOB/Employer certificate/ID/School/College Leaving Certificate | Passport/PAN Card/ Voter ID card, Photo Driving License with birth date/Photo ration card with DOB/Employer certificate/ID/School/College Leaving Certificate |
| Identity Proof | PAN Card/ Voter ID/Passport/Driving License, photograph | PAN Card/ Voter ID/Passport/Driving License, photograph |
| Income Proof | Latest Salary Slip with Form 16 | ITR for last two years, computation of profit & loss account and balance sheet for last two years |
| Address Proof | Ration card/Driving licence/Voter Card/Passport /Telephone Bill/ Electricity Bill/Life Insurance Policy/PAN Card | Ration card/Driving licence/Voter Card/Passport /Telephone Bill/ Electricity Bill/Life Insurance Policy/PAN Card |
| Sign Verification Proof | Driving License/Passport copy/PAN Card | Driving License/Passport copy/PAN Card |
Table showing interests and EMIs on used car loan of Rs 3,00,000 for different periods at Kotak Bank
| Loan Amount | Tenure in Years | Interest Rate | EMI | Total Interest | Total Amount (Principal+Interest) |
|---|---|---|---|---|---|
| Rs 3,00,000 | 1 | 17%-20% | Rs 27,361-27,790 | Rs 28,337-33,484 | Rs 3,28,337-3,33,484 |
| Rs 3,00,000 | 2 | 17%-20% | Rs 14,833-15,269 | Rs 55,984-66,450 | Rs 3,55,984-3,66,450 |
| Rs 3,00,000 | 3 | 17%-20% | Rs 10,696-11,149 | Rs 85,049-1,01,367 | Rs 3,85,049-4,01,367 |
| Rs 3,00,000 | 4 | 17%-20% | Rs 8,657-9,129 | Rs 1,15,513-1,38,197 | Rs 4,15,5-13-4,38,197 |
| Rs 3,00,000 | 5 | 17%-20% | Rs 7,456-7,948 | Rs 1,47,346-1,76,890 | Rs 4,47,346-4,76,890 |
Even though Kotak Bank offers flexible repayment options, but the higher interest rate of 17%-20% just becomes unaffordable for a large section of the budget consumers. So, choose the option wisely after taking cue from the table showing the payout of EMIs and interest on loan for used car at Kotak Bank.
