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Car Loan

Kotak Mahindra Bank : Overview

Kotak Mahindra Bank Limited, previously known as Kotak Mahindra Finance Limited, is an Indian private bank and financial services company founded in 1985 and headquartered at Mumbai, Maharashtra. Kotak Mahindra Bank offers highly acclaimed personal finance solutions of all types like savings account, credit cards, loans, insurance and many more. Kotak Mahindra Finance Limited was initially a non-banking financial firm, which converted into a Bank in February 2003 with a license by the Reserve Bank of India (RBI), becoming the first company in the Indian banking history to transform to a financial institution or a bank. The bank offers transaction banking, manages IPOs, provides working capital loans and operates lending verticals.

Kotak Mahindra Prime Limited (KMPL) is the sister concern of Kotak Mahindra Bank, that finances all forms of passenger vehicles including cars, pre-owned cars and multi utility vehicles. KMPL is one of India's most prominent car finance companies, funding and supporting automotive dealers, retail customers and manufacturers. KMPL has, over the years associated with various car manufacturers in India such as Honda, General Motors, Hyundai, Toyota, Maruti, Volkswagen, Skoda, Ford, Audi, Nissan, Renault etc., helping loan borrowers with buying their cars as well.

New Car Loan Plans by Kotak Bank

You can now easily get that dream car you always wanted to own with new car loans by Kotak Mahindra of amounts up to 90% of the ex-showroom price with low rates of interest and flexible tenors of repayment as per your convenience. Following schemes are offered by Kotak Mahindra under the new car finance plans:

  • Margin Money Scheme

Under this scheme, the bank provides finance for buying a new car of up to 90% of the invoice value for certain car models. The customer can pay the margin money (invoice value minus the finance amount) either to the dealer directly or to KMPL upon which the bank would release the entire invoice value to the Dealer. The financed amount can be repaid to the bank as per your convenience within a period ranging from 12 to 60 months in form of EMIs.


  • Step Up Scheme

This scheme involves increasing the car loan EMI on a yearly, half- yearly or a quarterly basis, depending upon needs of the customer. This scheme works best for those expecting a growing income to buy a luxury car experience. So basically, it starts with low EMIs in the early period of repayment and increases as it nears tenure completion.


  • Low EMI, Balloon Scheme

This scheme involves paying 10%-25% of the cost of the car as last EMI. This kind of scheme is best for customers who are looking at affordable EMIs during the tenure and have a plan to dispose of their vehicle at the end of the tenure.


  • Advance EMI Scheme

Make the monthly car loan payments of a few installments upfront under this scheme by Kotak Mahindra bank. The balance remains payable through EMIs, than enable you to pay off your loan much faster with the advance installments.

Key features of Kotak Mahindra Bank Car Loan:

  • Widest range of new and pre-owned car loans through various schemes based on flexible EMI’s and tenure for a car loan, namely, Money scheme, Step Up scheme, Low EMI Balloon scheme, Advance EMI scheme and some Special schemes.
  • Avail a loan of up to 90% of the amount for certain car models, enabling customers to purchase the car of their dreams.
  • Attractive interest rates ranging from 11.50% to 13.50%, considered as some of the lowest interests in the market.
  • Flexible repayment tenure completely depending upon customer convenience, ranging from periods of 12 months to 60 months.
  • Adjustable car loan schemes that emphasize on efficient customer service not only before taking the loan but also afterwards.
  • Simple loan application procedure helping customers get the loan sanctioned quickly within 48 hours after documentation is complete.

Kotak Mahindra Bank Used Car Loan

With features like quick application processing and high funding, you can fulfil the dream of driving your own car with simple and hassle-free Used Car Loans by Kotak Mahindra. KMPL offer up to 90% funding of the car value and it also provides an option of availing finance against your existing car.

  • Pre-approved car loan

These are low ticket size loans, offering loan for used cars of amount up to Rs. 1.5 Lacs. These loans involve minimum documentation.


  • Preferred segment loan

Preferred segment loans offer funding up to 85% with Loan amount ranging between Rs. 1.5 – Rs. 15 Lacs and maximum tenure of 60 months


  • Approve you own loan

KMPL offers this facility for salaried employees who can make monthly installments Up to 40% of net salary. Loan amount equals up to 2 times of your annual salary.


  • Cash against your car

You can avail this loan by pledging your existing car which is free from any hypothecation or loan.

Features of Kotak Mahindra Bank Used Car Loan:

While the Kotak Mahindra car loan details are available in the policy document, the major features of KMBL car loans are -

  • Kotak Mahindra offers High Quantum of Loan, which is up to 90% funding of the car value.
  • For loan amount up to Rs.1.5 Lakhs, the loans come pre-approved with minimal documentation requirements at Kotak Mahindra Bank.
  • With Kotak Mahindra’s preferred loan segment for used cars, borrowers can choose flexible tenure options ranging from up to 60 months and a loan amount between Rs.1.5 lakhs to Rs.15 lakhs.
  • Used Car Loans by Kotak Mahindra require minimum documentation, therefore, are simple to avail. Plus, with Kotak Mahindra car loan online application facility and unmatchable efficient customer service, you are guaranteed of a hassle-free loan process.
  • Kotak Mahindra Bank also offers attractive interest rates, highly competitive, for Used Car Loans depending on the loan tenure and vehicle’s age prior to car loan disbursals.

Interest Rate on Kotak Mahindra Bank Car Loan

Kotak Mahindra car loan interest rates for used cars vary depending on the eligibility of the applicant and the depreciation rate. Further, depending on the tie-ups and discounts offered by the car dealers, the lending rates also keep varying from time to time. Generally, interest rates for used cars are higher than that of new car loans because of the depreciation involved.  The interest rates must be inquired directly at the Bank at the time of loan consideration.

However, the base interest rate applicable on a Kotak Mahindra car loan is 9.50%.

Additional Charges on Kotak Mahindra Car Loan:


Charge Applicable

Per cheque charges for dishonour

Rs. 500

Prepayment charges

5.21% of amount prepaid + applicable service tax

Security Deposit Receipt duplicate issue charges/receipt

Rs. 250

Issue of:

  • Agreement copy (duplicate)
  • NOC (duplicate)
  • Registration Certificate (duplicate)

Rs. 750

Cancellation of Contract (other than foreclosure and prepayment interest) at specific request of the Borrower and agree by the Lender

Rs. 2000

  • Delayed Payment
  • Late Payment Charges
  • Compensation
  • Additional Finance Charges (Monthly)


Copy of Repayment Schedule

Account Outstanding

Break-up statement

Rs. 250

Collection Charges for non PDC cases (per cheque) for non-payment on due date

Rs. 500

Post-dated cheques swap charges

Rs. 500 per swap


Rs. 2000

Statement of Account

Rs. 500

Interstate Transfer NOC

Rs. 1000

Commercial to personal use conversion NOC

Rs. 2000

Private to commercial conversion NOC

Rs. 5000 (subject to approval)

Calculating EMI for Kotak Mahindra Bank Car Loan

An Car Loan EMI Calculator is a helpful tool which lets you plan the finances ahead of time. It also saves a lot of manual calculation and hours of your precious time. The Paisa Bazaar’s car loan EMI calculator requires you to enter details such as the borrowed loan amount, repayment tenure chosen and rate of interest offered by the bank. Once you enter the required information, the calculator will automatically calculate and present the EMI value to be paid monthly. You can calculate EMI for your Kotak Mahindra car loan using this tool by PaisaBazaar.

Calculating the EMI before applying for the car loan will ensure that you make informed decisions and also plan a budget for the future. This will help you check if the EMI calculated fits your monthly budget. To find out the tenure and amount that best suits you, you can vary the loan amount and tenure and keep re-entering the values till you arrive at a comfortable scheme.

Kotak Bank Car Loan Repayment Methods

The monthly installments on your car loan can be paid off to the bank in a number of ways as facilitated by the bank. The ways of repayment may include the following:

1. Standing Instructions (SI)

This mode is available to existing Kotak Mahindra bank account holders, be it individuals having a salary account, current account or a savings account with the lender Bank. The account holder can give fixed instructions to the bank to automatically debit the EMI amount every month from their respective accounts.

2. Electronic Clearing System (ECS)

This mode is for customers who do not have an account with the lender bank and order their respective banks to deduct the EMIs form their accounts and transfer the same to the lender against loan repayment.

3. Post-Dated Cheques

This too is a mode beneficial for individuals not having an account with the lender bank. They need to submit a set of Post-dated Cheques from their respective accounts. These cheques will automatically be released by the bank itself as and when they fall due.

Eligibility Criteria for Kotak Mahindra Bank Car Loan

Kotak Mahindra bank offers tailor made schemes for salaried individuals, self-employed people, HUFs, trusts, proprietorship & partnership firms and Public & Private Ltd. companies. Anyone who meets the basic required annual income and other criteria can be eligible for a Kotak Mahindra Car Loan.

For Salaried Individuals

  • Applicant must be at least 21 years old at the time of loan application
  • Applicant must be not more than 58 years at the time of loan maturity
  • Minimum annual income must be Rs. 1,00,000
  • Minimum employment tenure must be of 6 months

For Self Employed

  • Applicant must be at least 21 years old at the time of loan application
  • Applicant must be not more than 65 years at the time of loan maturity
  • Minimum employment tenure must be of 2 years in same business

Eligibility for Kotak Mahindra car loan can be checked in a hassle-free manner by just clicking on Check Your Car Loan Eligibility at PaisaBazaar’s portal.

Documentation Required for Kotak Mahindra Bank Car Loan

For a smooth and hassle-free car loan application process, it is vital to get in all the necessary documents together in one place. The required documents for a car loan application vary depending on the nature of the applicant’s employment and income source. Following is a list of the important documents that will be asked for during loan application for a car loan from Kotak Mahindra Bank:

For Salaried Individuals

  • Completely filled and duly signed application
  • Identity, Address and Income Proof
  • Salary account bank statement
  • Self-attested photograph

For Self-employed Individuals

  • Filled and signed application form
  • Identity, address and identity proof documents  
  • Business account statement or IT returns
  • Photograph, self-attested by the customer

For Proprietary Firms

  • Completely filled application form
  • Proof of address
  • Accepted verification document
  • Previous 2 years’ ITR certified by a CA
  • CA certified Profit & Loss Account and balance sheet for the last 2 years

For Partnerships firms & Companies

  • Completely filled application form
  • Proof of business address
  • Accepted bankers’ verification
  • Sum of income of last 2 years as certified by a CA
  • CA certified P&L statement and balance sheet of previous 2 years
  • Income Tax Returns of last 2 years
  • Partnership Deed or Trust Deed and Letter of Authority required for Partnerships
  • MoA and Board Resolution providing authorization to director for execution of agreement

Documentation Required for Kotak Mahindra Bank Used Car Loan:

  • Duly filled and signed application form
  • The RC copy, insurance copy of the vehicle and valuation copy
  • Proof of residence
  • ID proof documents
  • Salaried applicants should submit a copy of Form 16, latest salary slip showing all statutory deductions and Income Tax returns statement.
  • Other class of applicants should submit the last two year’s income tax computation, partnership deed or the P&L statement.
  • Other documents for Kotak Mahindra car loan like letter of authority and MOA might be asked for by the bank if required.

Kotak Mahindra Bank Car Lease for Corporate Customers

Lease is a financial transaction that permits conveying of the asset by a lessee (Corporate or a Corporate Employer) for a specified time in return of a periodic payment charged by Lessor (the Bank). Kotak Mahindra offers lease tenures ranging from 3 years to 5 years. In addition, KMPL will help in selecting variant and model of the car for desired price band which suits the need of end-user.

Other offerings by the bank:

  • competitive rates and transparent pricing
  • Presence in all metros and key states
  • Hassle free Processing
  • Single Point Contact for all queries and issue resolution
  • Tie up with dedicated insurance company for car insurance.
  • Tie up with all major car dealers and manufacturers
  • Car Lease take-over facility from other financiers
  • We also offer leasing option for computers, equipment, plant and machinery etc.

Why Kotak Mahindra Bank Car Loan?

KMPL has a robust retail distribution network consisting of 79 branches in 18 states throughout the country. Kotak Mahindra Bank has over 1,200 branches and 1,900 ATM’s across India. It was ranked one among the top 5 companies for corporate governance in IR global ranking and is the fourth largest private sector bank in India. The Bank’s relations with car manufacturers are helpful in providing you the benefit of the most attractive deals on your vehicle in the market. In fact, Kotak Mahindra plans have special schemes from time to time, under the various manufacturer tie-ups. Kotak Mahindra Bank provides adaptable loan solutions and affordable car finance plans with attractive features and quick processing. The Bank offers loan for new, used and leased cars. You can choose from the different car loan schemes offered by the Bank based upon your personal requirements.

Kotak Mahindra Bank Car Loan on Paisa Bazaar

Anybody can apply for a Kotak Mahindra car loan through Paisa Bazaar. We are associated with all the major banks and financial institutions and provide accurate and reliable information on probable car loan options for our customers. Customer can compare the car loan interest rates, pros and cons and different schemes available from Kotak Mahindra and other similar banks on Paisa Bazaar. Our user friendly interface saves a lot of time for the customers as they are able to get the required information well organized in the same place. Prospective car loan customers can easily check their eligibility for Kotak Mahindra Car Loan as well as monthly EMI to be paid, easily through our loan Eligibility and car loan EMI calculators, respectively.

Other reasons for applying for a Kotak Mahindra Bank Car Loan through us are:

  • We are one stop for a diversity of Products, offering multiple choices of car loans for every requirement specified.
  • PaisaBazaar keeps you updated with the lowest available interest rates and attractive deals on car loans and other products offered by the best banks in the market.
  • By letting you fill up an online form about the kind of loan you desired, PaisaBazaar evaluates the perfect loan options for you.
  • In order to decide the best for you, you can compare loans from different Banks against each other for parameters like rate of interest offered, EMI options available, processing fees charged, customer feedback, etc.
  • Personal information is treated with high regard and kept very confidential at Paisa Bazaar. The information you provide is only shared with your chosen lender, and never shared with a third party for any reason whatsoever.

How to apply on Paisa Bazaar:

Applying for a Kotak Mahindra bank car loan on Paisa Bazaar is quick and a simple process. To apply for a Kotak Mahindra car loan with us, you may follow the following step by step procedure:

  • Visit www.paisabazaar.com
  • On the homepage, select ‘Car Loan’ from the various loan options spread on the screen. It will land you to a car loan eligibility calculator. Fill in all the fields and at the end of it, Paisa Bazaar will sort down the best Car loans available matching your requirements, for you to choose from.  
  • Once you have made up your mind to avail Kotak Mahindra Bank car loan, select the car loan option and quote offered by the bank by clicking on it.
  • After you submit the online application, you will receive an instant e-approval from Paisa Bazaar.
  • This application along with the information you provide is then transferred to your chosen bank from wherein a customer support executive from the same will get in touch with you and take the process forward.


  • You can go to the ‘Learn’ dropdown menu from the tool bar on the top of the home page and select ‘Banks and Financial Institutions’.
  • Here you will be presented with a list of all the associated banks, from which you can choose Kotak Mahindra or any bank you wish to buy the loan from.
  • Once you select the bank, every requisite piece of information will be available to you about the bank and its products, as you scroll through.
  • Choosing Kotak Mahindra Bank directly from this menu will allow you to properly check the features and benefits associated with the Bank. The ‘Apply Online’ option takes this step further.

Availing services using Paisa Bazaar helps you save time, money and efforts, while assuring you the best loan options that are sorted exclusively for your requirements.

Kotak Mahindra Bank Car Loan FAQs

1. What are the tenure options available in case of a car loan?

The tenure for repayment is flexible and can be fixed as per your choice. The Bank offers repayment tenure of 12-60 months.

2. How can I apply for a car loan?

You can apply for a car loan online just by filling the online car loan application form and the Bank representative will guide you through the rest of the process.

3. How can I apply for a Used Car Loan by Kotak Mahindra Bank?

You can simply apply from the comfort of your home through SMS, net banking or Email.  Nevertheless, you can also visit the nearest Kotak Mahindra branches to submit your loan application.

4. What are charges for documentation levied by Kotak Bank for loans on new cars?

These charges vary from based on various factors and are provided to the customer at the time of signing up for the loan.

5. What all documents I need to attach with my car loan application?

Documents to be furnished for a car loan application include- Identity proof, Address proof, Income proof and also bank statement of your salary or business account.

6. What income documents must be submitted when applying for a KMBL car loan?

For salaried applicants, Form 16 and Recent Pay Slip are mandatory requirements, while self- employed applicants have to submit the latest IT returns statements.

7. What are the documents that are accepted as address proof by Kotak Mahindra Bank?

Kotak Mahindra Bank will accept copies of telephone bills and electricity bills as address proofs.

8. Is there an option for foreclosure of the car loan?

Yes, you can foreclose the car loan by paying a foreclosure charge of 5.75% of the outstanding principal.

9. Is having a guarantor mandatory for availing car loan?

No, a guarantor is not necessary for availing car loan. But, in case you do not satisfy the Bank’s income and age requirements, then a guarantor might be required.

10. What is Kotak Bank’s minimum car loan sanction amount?

The min. car loan principal that Kotak Bank approves is Rs. 75,000. The car loan amount eligibility is at the discretion of the bank.

11. What is Kotak Bank’s minimum car loan tenure?

As per the requirements of the customer, the min. car loan tenure provided by Kotak Bank is 12 months.

12. What is the maximum car loan amount that will be sanctioned by Kotak Mahindra Bank?

The maximum car loan amount that will be sanctioned by Kotak Mahindra Bank is up to 90% of the vehicle value.

13. How long is Kotak Bank’s maximum car loan tenure?

Kotak Mahindra Bank Car Loan’s maximum tenure is capped at 5 years i.e. 60 months.

14. Which cars do KMBL finance under the Used Car Loan scheme?

All kinds of passenger cars are financed by Kotak Mahindra under Used Car Loan scheme, like in case of new cars.

Kotak Mahindra Bank Car Loan
(4.7/5 ) 3 Reviews
Car LoanCar Loan

Buying car became easier

I am very pleased with my car loan scheme, this is literally making my dream come true of buying my own car before I turn 25. My Kotak car loan has very low interest rate of 10.75% p.a. only. The loan application process was simple and their relation..Read more...

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Posted on: Dec 29 , 2016
Car LoanCar Loan

Very quick with approvals

Within a week I am about to receive my car. With the help of my loan scheme from Kotak I could buy my favourite car model. I am very happy and eagerly waiting to receive my car. My loan got approved within a day without any hassle.. the interest rate..Read more...

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Posted on: Dec 28 , 2016
Car LoanCar Loan

Good bank with good loan schemes

The bank has the easiest processing for its loan schemes. I applied for my Kotak car loan to gift my wife a new car on our wedding anniversary. I could do it without any hassle within few days. My loan has minimal charges and interest rate at 9.50% p..Read more...

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Posted on: Dec 27 , 2016