Go Back   Team-BHP > BHP India > Team-BHP Reviews > Indian Car Loans & Insurance


Reply
 
Thread Tools Search this Thread
Old 1st September 2009, 09:29   #1
BHPian
 
Join Date: Sep 2008
Location: Bangalore
Posts: 345
Thanked: 3 Times
Default Kotak Mahindra Preclosure charges

Hi All,

I have decided to pre-close car loan taken with Kotak mahindra for my Fiesta. Can you anyone please let me know the pre-closure charges they levy on customers? I called their call center and they informed it is 5.5% of outstanding amount. Is it true??? 5.5% is too much
funda2max is offline   Reply With Quote
Old 1st September 2009, 12:27   #2
BHPian
 
Join Date: Dec 2007
Location: mumbai
Posts: 285
Thanked: 16 Times
Default

Hi
Preclosure is 5% of principle outstanding amount. This is mention in the loan agrement. Do check your loan agrement.
udaydesai is offline   Reply With Quote
Old 1st September 2009, 13:58   #3
BHPian
 
Join Date: Sep 2008
Location: Bangalore
Posts: 345
Thanked: 3 Times
Default

Quote:
Originally Posted by udaydesai View Post
Hi
Preclosure is 5% of principle outstanding amount. This is mention in the loan agrement. Do check your loan agrement.
I don't have the loan agreement handy, its at my home town. I remember it was 3-3.5% of outstanding principle. Is it not the case?
funda2max is offline   Reply With Quote
Old 1st September 2009, 14:01   #4
Senior - BHPian
 
sammyboy's Avatar
 
Join Date: Jul 2006
Location: Gurgaon/Doon
Posts: 1,738
Thanked: 338 Times
Default

Well the only thing would be to check the agreement bro. Kotak is one of the worst banks you can ever deal with. I am having issues with my loan as well as my savings bank account so you never know what they might try to charge you.
sammyboy is offline   Reply With Quote
Old 1st September 2009, 14:07   #5
BHPian
 
Join Date: Dec 2007
Location: mumbai
Posts: 285
Thanked: 16 Times
Default

Quote:
Originally Posted by funda2max View Post
I don't have the loan agreement handy, its at my home town. I remember it was 3-3.5% of outstanding principle. Is it not the case?
Then you need to call their call center , mention your agrement no. and ask them. If you have clear record then they might reduce it, it all depends on your relation with the bank.


Quote:
Originally Posted by sammyboy View Post
Well the only thing would be to check the agreement bro. Kotak is one of the worst banks you can ever deal with. I am having issues with my loan as well as my savings bank account so you never know what they might try to charge you.

I totall agree with you. Kotak is the worst bank. Even I am in the process of closing my car loan with them.
udaydesai is offline   Reply With Quote
Old 1st September 2009, 14:17   #6
Team-BHP Support
 
benbsb29's Avatar
 
Join Date: Nov 2006
Location: Brisbane
Posts: 8,025
Thanked: 3,483 Times
Default

Its owing to the preclosure chanrges applicable that i decided to continue with my car loan although i had money to close it out earlier.

When i was car hunting, i was a novice at these things, and opted for the loan arrangement from the dealer. I suppose i have wisened up now.
benbsb29 is offline   Reply With Quote
Old 1st September 2009, 14:23   #7
Senior - BHPian
 
sammyboy's Avatar
 
Join Date: Jul 2006
Location: Gurgaon/Doon
Posts: 1,738
Thanked: 338 Times
Default

Quote:
Originally Posted by udaydesai View Post
I totall agree with you. Kotak is the worst bank. Even I am in the process of closing my car loan with them.

Quote:
Originally Posted by benbsb29 View Post
Its owing to the preclosure chanrges applicable that i decided to continue with my car loan although i had money to close it out earlier.

When i was car hunting, i was a novice at these things, and opted for the loan arrangement from the dealer. I suppose i have wisened up now.
Exactly man, I would have closed my loan atleast 2 years ago but thanks to the wonderfully helpful guys at Kotak I am still paying it.
Only silver lining is I have just 8 months to go.
sammyboy is offline   Reply With Quote
Old 1st September 2009, 14:36   #8
Senior - BHPian
 
msdivy's Avatar
 
Join Date: Aug 2006
Location: Bangalore
Posts: 1,445
Thanked: 838 Times
Default

I had car-loan with Kotak & pre-closed it. Pre-closure charges for car-loan is high for most banks. But I knew this when I was availing the loan. SBI must have less charges.

Calculate the interest you will be paying for remainder period. If its more than pre-closure charges, then its better to close the loan.

PS: Kotak sent the NOC to my home by courier. The courier didn't reach me and I had to collect from their branch.
msdivy is offline   Reply With Quote
Old 1st September 2009, 14:40   #9
BHPian
 
Join Date: Dec 2007
Location: mumbai
Posts: 285
Thanked: 16 Times
Default

Quote:
Originally Posted by sammyboy View Post
Exactly man, I would have closed my loan atleast 2 years ago but thanks to the wonderfully helpful guys at Kotak I am still paying it.
Only silver lining is I have just 8 months to go.
Yes very much true. kotak guys made me sign every where, on the agrement. every small details where with held from me. Even when I got the agrement I could not understand the same. Now after three years when I have become wise and made a sincere affort to go through the agrement, I have paid for insurance against the loan amount. this info was not reveled to me

Guys just one question. Is it wise to close the loan amount or keep on paying the EMI ?
udaydesai is offline   Reply With Quote
Old 1st September 2009, 14:46   #10
BHPian
 
Join Date: Feb 2005
Location: New Delhi
Posts: 393
Thanked: 39 Times
Default

Quote:
Originally Posted by msdivy View Post
I had car-loan with Kotak & pre-closed it. Pre-closure charges for car-loan is high for most banks. But I knew this when I was availing the loan. SBI must have less charges.
Many public sector banks have 1-2% pre-closure charges. Some of these banks have zero pre-closure charges provided only a few instalments are pending.
greenh0rn is offline   Reply With Quote
Old 1st September 2009, 15:19   #11
BHPian
 
Join Date: Sep 2008
Location: Bangalore
Posts: 345
Thanked: 3 Times
Default

Quote:
Originally Posted by greenh0rn View Post
Many public sector banks have 1-2% pre-closure charges. Some of these banks have zero pre-closure charges provided only a few instalments are pending.
SBI is the best i would say. They have 0% pre-closure charges. Kotak, you should be
funda2max is offline   Reply With Quote
Old 1st September 2009, 15:27   #12
Team-BHP Support
 
mobike008's Avatar
 
Join Date: Sep 2006
Location: Hyderabad
Posts: 10,746
Thanked: 7,964 Times
Default

Private banks are out to fleece you rememeber that and they charge anywhere between 4%-5% as preclosure charges. You wont get off any lesser for sure. Infact, with my ICICI car loan for 3 years, i missed only 1 EMI and they came promptly and collected the EMI amount next month and didnt charge any late payment fee. But, when i was preclosing they charged me Rs.500 as late payment fee for that particular missed payment. So you can imagine what extent they can go to fleece you.

Quote:
Originally Posted by funda2max;14609 20
SBI is the best i would say. They have 0% pre-closure charges. Kotak, you should be
I agree since my current car loan is SBI. However, you can preclose only after 6 months and they dont apply any preclosure charges
mobike008 is offline   Reply With Quote
Old 15th February 2013, 18:37   #13
BHPian
 
BinFord's Avatar
 
Join Date: Oct 2012
Location: Brisbane,AUS
Posts: 107
Thanked: 35 Times
Default Re: Kotak Mahindra Preclosure charges

Hi All

Would like to re-open this thread if it is closed.

I am planning to pre-close my car loan with Kotak Mahindra. What about the pre-closure charges ?Do they have pre-closure charges now. I heard some recent communication from Reserve bank about pre-closing of loans and waiving off the charges.

Also Can I sell my car with existing loan if I am continuing with the loan?
BinFord is offline   Reply With Quote
Old 20th February 2013, 18:38   #14
BHPian
 
BinFord's Avatar
 
Join Date: Oct 2012
Location: Brisbane,AUS
Posts: 107
Thanked: 35 Times
Default Re: Kotak Mahindra Preclosure charges

Hi All

I would like to update on the foreclosure process of Kotak Mahindra. Following is the e-mail I received after inquiry

Also attaching the "Foreclosure_Covering_letter" which need to submitted along with the Foreclosure cheque

---------------------------------------------------------------------------------------------------------

Dear Sir,

As requested, the Foreclosure amount as on XX/02/2013 comes to Rs. XXXXXX/-.Please note that this amount is valid only till XX/XX/XX13. Since per day interest gets calculated the amount keeps changing on a daily basis. Hence the day you wish to foreclose your loan account, kindly confirm the exact amount from us and then accordingly you can make the payment at our Trivandrum Branch.


Principal Outstanding as on xx/12/12 Rs. XXXXX
Prepayment Interest (5.21% on Principal Outstanding + Service Tax) Rs. XXX
Revenue for broken period Rs XXXX
Overdue Interest Receivable Rs XXXXX
Foreclosure Receivables /Payables Rs. XXXXXXXX

Per day increase of Rs. 24/-
We request you to foreclosure your account 12 days prior to your next EMI date i.e. 12 days prior to 1 st of every month.

Along with the foreclosure cheque, kindly find enclosed foreclosure covering letter,it has to be duly signed and submitted along with below mentioned documents at our following branch address.


A copy of your RC book.
A self attested copy of your Pan Card or Driving License.

All the above documents need to be submitted at our below mentioned nearest branch.

---------------------------------------------------------------------------------------------------------
Attached Files
File Type: pdf Foreclosure_Covering_letter.pdf (45.6 KB, 1634 views)
BinFord is offline   Reply With Quote
Old 18th September 2017, 17:47   #15
BHPian
 
Join Date: Dec 2013
Location: Bengaluru
Posts: 28
Thanked: 5 Times
Default Re: Kotak Mahindra Preclosure charges

Bumping up an old thread.
I'm in the process of hunting for a loan provider. Trident Hyundai says they can arrange a loan with Kotak Mahindra. The car loan rep who talked to me claims that after one year, there are no part payment penalties and no foreclosure penalties. No additional hidden charges also. This is if, I open a zero balance account with them.
Does it sound too good to be true? Can I trust them? What can I do to ensure that they keep their word?
gurupalani is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Rogue Agents from Kotak Mahindra Prime beejay Indian Car Loans & Insurance 18 30th March 2013 09:29
Harrassment by Kotak Mahindra-Help! sammyboy Indian Car Loans & Insurance 52 25th August 2009 17:13
Kotak Mahindra just refuses to give me my NOC! floyd Indian Car Loans & Insurance 9 27th July 2009 12:13
best auto finance from preclosure prespective vinodbijlani Indian Car Loans & Insurance 15 1st August 2007 13:14
Kotak Mahindra Bank - Acting Funny Prabh Indian Car Loans & Insurance 8 10th August 2006 09:01


All times are GMT +5.5. The time now is 01:14.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks