Kotak Mahindra Bank Car Loan

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

ParametersSalaried ProfessionalSelf-employed
Age21-58 years21-65 years
Minimum Income Minimum Salary of Rs 2.4 lacs per annumAs applicable by the bank
Employment/Business Continuity At least 1 year of work experienceBeen in the business for at least 1 year

Documentation for Kotak Car Loan

ProofsSalaried ProfessionalSelf-employed
Application Form with Photograph YesYes
Age ProofPassport/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 16ITR 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 CardRation 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 YearsInterest RateEMITotal InterestTotal Amount (Principal+Interest)
Rs 3,00,000117%-20% Rs 27,361-27,790 Rs 28,337-33,484Rs 3,28,337-3,33,484
Rs 3,00,000217%-20% Rs 14,833-15,269Rs 55,984-66,450Rs 3,55,984-3,66,450
Rs 3,00,000317%-20% Rs 10,696-11,149Rs 85,049-1,01,367Rs 3,85,049-4,01,367
Rs 3,00,000417%-20% Rs 8,657-9,129Rs 1,15,513-1,38,197Rs 4,15,5-13-4,38,197
Rs 3,00,000517%-20% Rs 7,456-7,948 Rs 1,47,346-1,76,890Rs 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.

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