Commercial Vehicle Finance

1800 209 5600

(9.30AM to 6.30PM IST)

Kotak Mahindra Bank is one of the leaders in the Commercial Vehicle financing segment for more than a decade. Backed with extensive experience and a deep understanding of the Transport and Passenger segment business, we are able to serve our large base of customers and offer them customized solutions. The Bank offers a complete range of financial services required by the sector. We have tied up with leading Commercial Vehicle Manufacturers and their dealer networks to offer a wide array of product offerings, like New Vehicle Finance, Finance on Used vehicles, top-up on existing loans, Working Capital Finance, Cash Advance to Transporters and Loan against Property. We also cater to Educational Institutions and other Captive customers for their Commercial Vehicle loan requirements.

  1. Reaches you through more than 900 locations that are spread across the country and are catered through our direct sales force network
  2. Simple documentation
  3. Quicker turnaround time
  4. Flexible repayment options
  5. Loan tenure can range from 12 months to 60 months
  6. Customised finance solutions which are tailor-made to meet individual requirements
  7. No hidden costs
  8. Wide range of products to choose from
  9. We offer loans for the complete range of Commercial Vehicles – Trucks, Buses, Tippers, Light Commercial Vehicles and Small Commercial Vehicles
  10. Finance for new vehicles, used vehicles, top-up on existing loans and takeover of existing loans
  11. Preferred financier status with all leading manufacturers and dealers across the locations, this ensures you avail the benefits of special schemes and discounts
  12. Nurture your business and manage seasonal cash flows with an array of Fund based and Non-Fund based facilities: Overdraft facility / Cash Credit, Business loans, Working capital finance solutions, Invoice Financing / Bill Discounting, Buyer’s Credit, Bank Guarantees, Letter of Credit, Letter of Credit backed Bill Discounting (LCBD) facility, Securitization of Receivables like Rental Discounting

Disclaimer

Conditions apply. Credit at the sole discretion of the Bank and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.
 
  • Any individual / partnership firm / company with more than two years of business experience
  • Existing owner of at least one commercial vehicle
  • Captive customers, educational institution and transporters
  • The applicant should be a local resident for at least 2 years in the approved location
  • Individuals with minimum 12 months experience in the field
  • First time owners can be funded at the discretion of the Bank
  • Captive customers, educational institution and transporters
  • 2 years audited financial statements, copies of Income Tax Returns filed and latest Provisional financial statement
  • Last 6 months Bank statement
  • Business stability proof
  • List of existing vehicles
  • Photo ID proof, address proof and signature verification of the applicant and the guarantor
  • Electricity bill/maintenance receipt
  • Transportation contract copies / Billing copies / LOI
  • Partnership Deed / Memorandum and Articles of Association / Trust Deed
  • Details of existing loans and repayment track records
  • Such other documents as required by the Bank

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What are the eligibility criteria for availing Commercial Vehicle Loan?

  • Any individual / partnership firm / company with more than two years of business experience
  • Existing owner of at least one commercial vehicle
  • Captive customers, educational institutions and transporters
  • The applicant should be a local resident for at least 2 years in the approved location
  • Individuals with minimum 12 months experience in the field
  • First time owners can be funded at the discretion of the Bank

What are the minimum & maximum loan amounts?

The loan depends on the applicant's requirement. We offer finance up to 100% of the chassis value; body funding can only be extended on special requirement. Additional finance can be offered depending on the requirement and the repayment track records.

What are the loan tenure options?

Loan tenure can range from a period of 12 to 60 months, depending on the loan requirement.

How is the interest charged/calculated?

Interest is charged at monthly rests on diminishing balance basis.

Do I have to pay any additional charges?

Additional charges include service charges and documentation charges.

What are the documents I need to submit to avail a Commercial Vehicle Loan?

To avail a Commercial Vehicle Loan, you will have to submit the following documents:

  • 2 years Audited financial statements, copies of Income Tax Returns filed and latest Provisional financial statement
  • Last 6 months Bank statement
  • Business stability proof
  • List of existing vehicles
  • Photo ID proof, address proof and signature verification of the applicant and the guarantor
  • Electricity bill/maintenance receipt
  • Transportation contract copies / Billing copies / LOI
  • Partnership Deed / Memorandum and Articles of Association / Trust Deed
  • Details of existing loans and repayment track records
  • Such other documents as required by the Bank

How do I approach Kotak Bank for a Commercial Vehicle Loan?

You can approach us in any of the following ways:

  • Call us at our Customer Care Centre (1800 209 5600)
  • You can walk into any of our branches
  • Through any of our Direct Sales Agents

How much time will it take for my loan to be approved?

The turnaround time for approval is between 24 to 48 working hours post submission of complete documents; however, the time taken may vary depending upon the nature of the loan, quantum of funding and location.

Who can be the co-applicants for the loan?

You can have the following as your co-applicants, depending upon your status:

  • Blood relatives in case of individuals
  • Partners in case of Partnership firms
  • Directors in case of Private Ltd companies
  • Any other individual who is legally competent to enter into a contract

Is a personal guarantor must?

A personal guarantor is required for Commercial Vehicle loans.  However, the nature and type of guarantor required may be reviewed depending upon the customer profile.

What security/collateral do I have to provide?

No additional collateral is required other than the vehicle on which the funding is extended.

If I do not meet all the criteria for the loan, can I still avail of a loan?

Yes, your application will be reviewed on the basis of your co-applicants credit worthiness. However, credit is at the sole discretion of Kotak Mahindra Bank Ltd.

How do I repay the Loan?

Repayment can be made through Post Dated Cheques (PDC) / Electronic Clearing System (ECS) / Standing instruction from your Kotak Bank Account.

Do I need to open an account with Kotak Bank for availing and/or servicing the loan?

We will encourage you to start a banking relationship with us, so that we will be able to offer a host of other value added services, which are complementary to the loan.

What are the stages involved in taking a loan?

The various stages involved are:

  • Application
  • Field Investigation and discussion on specific requirements
  • Evaluation and approval
  • Post sanction documentation
  • Disbursement

Do you have tie-ups with leading automobile manufacturers/dealers?

Yes, special schemes in tie-ups with various manufacturers and dealers will be running at various locations and at various points of time.

Can I change the dealer at any point of time?

Yes, this is subject to certain terms and conditions.

Is Comprehensive Insurance cover mandatory?

Yes, comprehensive coverage is required throughout the loan period.

Does Kotak have a tie-up for Insurance coverage?

Yes, we do offer Insurance through our bank assurance partners.

What is the procedure in case I wish to foreclose my account?

Yes, you may foreclose the contract.  Prepayment charges are applicable as per terms of the contract.

What should I do when my contract tenure gets over?

You have two options after your contract gets over:

  • You may avail of refinance, or
  • You may opt for termination

In case you avail of refinance, the endorsement in the RC book will continue. If you opt for termination, the termination papers including the RTO related papers will be released to you.

What are the papers I have to collect on termination?

The hire purchase termination letter, the no-objection letter addressed to the RTO and insurance endorsement cancellation letter

At what frequency do you send me periodical statement of account?

Statement of accounts will be sent to you annually at the end of each financial year.  If you require statements in between, you could contact our Customer Contact Centre (1800 209 5600) or walk in to your designated branch and lodge a request.

What should I do in the case of address change? Whom should I intimate?

You can intimate our Customer Contact Centre (1800 209 5600), or walk into your designated branch and lodge a written request with a new document of proof of address.

How do I get the basic details of contract for my records?

A welcome kit will be issued to you containing details of your contract and other important details from the servicing point of view. The copy of the agreement would also be dispatched to you subsequently.

Do you have a Customer Contact Centre? How do I get in touch with them?

We do have a Customer Contact Centre (1800 209 5600). This is open from 9.30 am to 5.30 pm every day from Monday to Saturday. You may address all your service requirements to the contact centre, apart from reporting any grievances. The contact centre would also help you with any further financing needs that you may require.

What is the grievance redressal mechanism available to me?

We have an elaborate grievance redressal mechanism available. Details are available in the link below:

http://www.kotak.com/bank/grievance/grievance_custcare_cb.htm

 

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