Kotak Mahindra Prime Limited (KMPL), a part of Kotal Mahindra Bank Limited, is primarily engaged in providing finance and loan services for all type of passenger vehicles such as passenger cars, multi-utility vehicles and pre-owned cars. It is counted among the leading car finance companies in India and is dedicated to provide financing services and solutions to automobile manufacturers, dealers and their customers.
The company is also engaged in providing inventory and infrastructure funding to car dealers and acts as the preferred financier for numerous car manufacturers such as the following:
- General Motors
KMPL boasts of a wide network of retail distribution with 69 branches across 15 states in India, as on August 1, 2011. In order to support the distribution network and expand the reach of the company, it further has a network of Direct Marketing Associates, brokers and agencies.
Kotak Mahindra Prime Limited was earlier known as Kotak Mahindra Primus Limited which was established on February 28, 1996 as a joint venture between Kotak Mahindra Finance Limited with 60 percent share and Ford Credit International Inc, USA with the rest. Later on, Kotak Mahindra Finance Limited became Kotak Mahindra Bank Limited.
The joint venture came to be realigned on October 4, 2005 and the remaining 40 percent of the shares, previously owned by Ford Credit International Inc., were taken over by the Kotak Group. Further, the name of the company was changed to the present Kotak Mahindra Prime Limited by the Registrar of Companies, Mumbai which came into effect from December 2005.
The company has rated by ICRA with AA+ rating, effective from August 2, 2011, which stands for Stability for “Long Term Debt Programme and Line Of Credit from Banks”. It has also earned both A1+ and AA+ rating from CRISIL. A1+ refers to “Short Term Debt Programme and Short Term Bank Facilities”, while AA+ stands for stability for “Long Term Debt Programme and Bank Loan Facilities” and is effective from July 26, 2011. These ratings reflect the company’s strong and consistent performance with respect to its growing market share. It also depicts its firm control on asset quality and its conservative balance sheet profile. The company’s backing by the Kotak Group has been a major contributor in its ratings, enabling stable and effective management and access to resources.
The Kotak car finance company is led by a strong team of professionals who are seasoned in the fields of banking and finance. These professionals have enabled the company to achieve a strong and stable position in the finance sector and become one of the leading financiers in India. With their vast experience, the management team has been able to face challenges and streamline the processes of the company to attain optimum effectiveness and operational efficiency.
- Mr. Vyomesh Kapasi – CEO & Manager
- Mr. Uday Kotak – Chairman
- Mr. Dipak Gupta – Director
- Mr. C. Jayaram – Director
- Mr. Arvind Kathpalia – Director
- Mr. Jaimin Bhatt – Director
- Ms. Shanti Ekambaram – Director
- Mr. Mohan Shenoi – Director
- Mr. K V S Manian – Director
- Mr. Narayan S A – Director
- Mr. Sumit Bali – Director
Kotak Car Finance
Kotak Mahindra Prime Limited provides finance options and schemes for all kind of passenger vehicles and offers car loans with suitable and convenient payment terms according to the customer’s preference. Finance schemes are available for new cars as well as pre-owned cars. Further, car lease finance options are also offered with customized solutions. The financing schemes are designed to provide comfortable payment options and credit relief to the customers and to enable them in meeting their requirements.
The financing schemes are characteristic of flexibility and attractive interest rates which ensure that the customer doesn’t have to carry the burden of heavy loan EMIs or live in the fear of confiscation of assets. Moreover, the loan process is quick and simple with only the necessary amount of documentation.
There are three kinds of finance schemes for financing private cars.
- New car finance
- Used car finance
- Car Lease for Corporate customers
KMPL has been awarded the Voice of Customer award for “Best Passenger Vehicle Finance Company in India 2006” by Frost & Sullivan (F&S) on 16th Feb’07. The study was conducted by Frost & Sullivan with 5100 customers across 15 cities. The customers were asked to rate the financiers on 9 parameters based on their satisfaction levels. 6 out of 9 parameters were topped by KMPL, while it was rated 2nd on two parameters among the leading financiers in India. Moreover, it was for the first time that an award was given in the Auto Finance domain, which makes it remarkable for the company to have won it.
Registered Office address:
36/38 A, Nariman Bhavan, 227,
Mumbai – 400 021
Corporate Office address:
Kotak Infiniti, 4th Floor, Bldg no 21,
Infinity Park, Off Western Express Highway,
General A K Vaidya Marg, Malad (E),
Mumbai – 400097
The new car finance scheme enables the customers to buy the car of their dreams through quick processing of loans and easy payment options. Up to 90 percent of the value of the car can be sanctioned as loan, which relieves the customer from bearing the complete burden alone. There are many schemes one can avail under the new car finance according to the suitability of the car buyer. The minimum loan that can be availed is Rs. 75,000.
If the applicants wish to pay the entire loan amount before the end of the loan tenure, there is an option of pre-paying the amount at any time after a period of 6 months of availing the loan. A small amount is charged as prepayment fee on the outstanding loan. The loan can optionally be also refinanced on the same vehicle after a predetermined time period.
The offered schemes are describes below:
Margin Money Scheme
Under the margin money scheme, loan can be availed for 90 percent of the car value depending on the make and model of the car. The margin money is to be paid directly to the car dealer by the customer. Margin money refers to the amount arrived at by subtracting the finance amount from the invoice value. Optionally, the customer may also pay the margin money to Kotak Mahindra which will release the entire invoice amount payable to the dealer. As chosen by the customer and agreed upon at the time of loan sanction, the loan amount can be repaid between a period of 12 to 60 months through fixed EMIs.
Step Up Scheme
Customer may also avail the Step Up Scheme which is so called because of the increase in the EMI after every passing year, every six months or quarterly according to the suitability of the customer and his financial management. This scheme is suitable for people with growing income who will be able to pay more as per their growing income. Thus, in the beginning of the loan period, the EMI amounts are low and increase after each year, half year or quarter as agreed upon at the time of sanctioning of the loan.
This scheme allows the customers to plan their finances according to their wishes and to enjoy the comforts of a car without feeling the burden of large payments and liabilities at the outset of their carriers. Under this scheme, the customers enjoy low EMIs for the entire tenure of the loan. However, the last EMI balloons up to almost 10-25 percent of the cost of the car. Thus, this scheme is suitable for people who wish to use the car up to the end of the loan period and then sell it off, so that the money can be quickly realized and the loan can be paid off on time without any financial burden.
Advance EMI Scheme
The advance EMI scheme allows the customer to make advance payments for a certain number of monthly installments and pay the balance through EMIs. This enables the customers to pay off their loans faster and get rid of the financial liabilities. The amount to be paid in advance and the amount of the fixed EMIs is agreed upon at time of sanctioning the loan as per the convenience of the customers
Special Schemes offered by KMPL
From time to time, Kotak brings new and special schemes for its customers as per the tie-ups with car manufacturers. These schemes are subject to the benefits offered by the car manufacturers as part of their promotional campaigns.
The primary criteria of eligibility for availing the financing schemes from Kotak Can Finance are the age of the person and the mode of income. The loan applicants are required to submit documents as proof of their age and income. A further profiling is executed by the company and the documents are checked and validated for authenticity.
For salaried individuals, the age criterion requires them to be in the age bracket of 21 to 58 years and should not exceed the same at the end of the loan period. Self employed individuals must lie in the age group of 21 to 65 years, not exceeding the age limit at the end of the loan period.
In terms of mode of income, the salaried individuals are required to have a minimum net annual income of Rs. 1,00,000 and minimum 6 months of employment. Self employed applicants are required to have minimum 2 years in business.
If the age or income of the applicants does not meet the requirements, a guarantee is required to stand surety for the loan.
Documents required by salaried employees:
- Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving license (Laminated, Recent, Legible)
- Income Proof: - Latest salary slip with Form 16.
- Address Proof: - Ration card/Driving license/Voters card/passport copy/telephone bill/ electricity bill/Life insurance policy PAN Card
- Salary Bank Statement
Documents required by self employment:
- Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving license (Laminated, Recent, Legible)
- Income Proof:- Latest ITR
- Address Proof:- Ration card/Driving license/Voters card/passport copy/telephone bill/ electricity bill/Life insurance policy PAN Card
- Business Bank Statement
The process of the application for loan is a 7-step one which is provided by the company, for the convenience of the customers, on the company website. Moreover, the information regarding application for loan can be asked for by e-mailing on email@example.com or visit the company’s nearest branch. The loan can also be applied for through the company’s online portal. The SMS facility may also be used to apply receive information about loans by messaging CF <Name of the city> to 5675788. The finance scheme is proposed in accordance with the requirements of the clients to suit their financial constraints.
The application for finance is required to be submitted along with supporting documents which will be further verified by a field investigation officer for authenticity. The KMPL credit officer will study the proposal and will sanction the loan on the basis of the documents and the FI report. After the approval of the loan, the agreement is signed upon and post dated cheques are collected for the payment of the remaining loan in fixed EMIs. A cheque or pay order is also given to the company for the margin money. With the fulfillment of all the requirements, the loan is disbursed.
The loan agreement copy and the repayment schedule are sent to the customer within 15 days of the disbursement of the loan.
At the time of delivery of the new car, the customer must collect the invoice from the dealer as the registration of the car takes almost 10 days. Moreover, the vehicle should be covered under comprehensive insurance throughout the loan period.
Kotak’s Used Car Finance offers easy and simple solutions for buying used cars with a number of schemes to suit the requirements of the customers. Up to 90 percent of the car’s value can be financed through these schemes. Another option is to avail the finance against an existing car. The loan amount can be processed within 72 hours of completing the documentation.
The schemes offered are as follows:
Also known as low ticket size loans, the Pre-approved loans refer to a loan amount of up to Rs. 1,50,000. Thus, the customer can avail these loans with the minimum paperwork and documentation.
Preferred segment loan
The Preferred segment loan enable the customer to avail finance for amounts between Rs. 1,50,000 to Rs. 15,00,000 to fund up to 85 percent of the vehicle’s value. The maximum tenure allowed for the loan repayment is 60 months which is decided at the time of loan agreement and sanction. The application and sanction process is assured of being hassle-free.
Approve you own loan
Approve you own loan is a financing scheme that is suitable for salaried employees with the option to fix the monthly installments towards repayment of the loan at up to 40 percent of their net salaries. The amount of loan availed can be up to twice the annual salary of the employee.
Cash against your car
The customers have the option of availing finance by pledging their existing car. The conditions require the existing car being pledged to be free from any loans or liability.
Takeover of your existing car loan and generate cash
If there is a loan pending on an existing car of the customer, the loan can be taken over for generating finance for the current car. In case, the foreclosure amount is less than the amount being funded on the asset, cash can be generated and availed for 100 percent finance. The existing car must be in the name of the loan applicant. Moreover, the new loan terms take into consideration the past repayment track record.
The loan application for financing a pre-owned car is the same as for the new car. The only difference is the valuation of the car. In case of a new car, the car dealer provides the value as per the list price and the other charges of registration and insurance. In case of a pre-owned car however, the valuation is conducted by an authorized insurance evaluator who evaluates the condition of the car which has been proposed for financing and submits a report about the market value of the car. This also assists the customer to avoid buying accidental cars which may already be damaged.
Car Lease for Corporate customers
The car lease financing option is available for the corporate customers of Kotak Car Finance. It refers to a financial transaction enabling the lessee, a corporate, to use the vehicle on payment of a rental charge to the lessor or the car dealer. The lease tenure may vary from 3 years to 5 years. Further, Kotak also provides assistance in selecting the variant and model of the vehicle in accordance to the price bracket desired by the customer and suit their requirements as well.
The following features are offered with the car lease financing scheme:
- Transparent pricing mechanism and competitive rates
- Hassle free Processing
- Presence in all metros and key states
- Single Point Contact for all queries and issue resolution
- Car Lease take-over facility from other financiers
- Tie up with all major car dealers and manufacturers
- Tie up with dedicated insurance company for car insurance.
We also offer leasing option for computers, plant and machinery, equipment, etc.