[funda2max]

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

[udaydesai]

Hi
Preclosure is 5% of principle outstanding amount. This is mention in the loan agrement. Do check your loan agrement.

[funda2max]

Originally Posted by udaydesai

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?

[sammyboy]

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.

[udaydesai]

Originally Posted by funda2max

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.

Originally Posted by sammyboy

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.

[benbsb29]

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.

[sammyboy]

Originally Posted by udaydesai

I totall agree with you. Kotak is the worst bank. Even I am in the process of closing my car loan with them.

Originally Posted by benbsb29

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.

[msdivy]

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.

[udaydesai]

Originally Posted by sammyboy

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 ?

[greenh0rn]

Originally Posted by msdivy

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.

[funda2max]

Originally Posted by greenh0rn

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

[mobike008]

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.

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

[BinFord]

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]

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.

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

[gurupalani]

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?