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Kotak Mahindra Bank has become one of the most reliable names in the banking world. This private sector bank is considered to be among the top five banks in the country and offers a huge range of products for retail and corporate customers.

The loan products of the bank like personal loans, education loans, vehicle loans, home loans, etc. are designed specifically for the target customers and thereby are considered to be among the most competitive and lucrative options as compared to others in the market.

The used car finance scheme of the bank has microloan options as well for buyers that do not require a huge loan amount and also require prompt loans.

Eligibility for Kotak Mahindra Bank Used Car Loan

Kotak Mahindra Bank Used Car Loan

The used car loan of the bank can be applied by any resident individual of the country whether salaried or self-employed.

The bank has laid down explicit conditions for each category of applicants with regards to the age requirements and income/employment requirement. The details of such conditions are tabled here.

ParticularsSalaried individualsSelf-Employed

Minimum age 

21 years

21 years

Maximum age

60 years

65 years

Minimum income per month

Rs. 15,000


Minimum employment


1 year in business

These eligibility criteria of the bank are very wide in nature and very inclusive. This helps the bank to cater to a huge customer base thereby aiding maximum persons with their financing needs for purchasing used cars.

Besides the above eligible persons, the bank also provides used car loans to non-individual entities like,

  • Proprietary concerns
  • Partnership Firms
  • Private Limited Companies 
  • Public Limited Companies

Documents required for Kotak Mahindra Bank Used Car Loans

Kotak Mahindra Bank has a very comprehensive and extensive list of documents that are required from each category of applicants.

These documents include certain KYC documents as per the usual banking norms as well as applicant category-specific documents and vehicle-related documents that are applicable for all.

General KYC Documents – 

  • Duly filled application form
  • Identity proof (Verification from the banker/ Voter’s ID/ Driving License/ Passport)
  • Address proof (electricity bill/ telephone bill/ water bill)
  • Signature verification (Verification from the banker/ Voter’s ID/ Driving License/ Passport/ PAN Card/ IT Return)
  • Recent Photographs (one to be signed by the customer)

Applicant Specific documents

Salaries Applicants – 

  • Latest salary slips
  • Form 16/ IT Returns

Self – Employed Firms and Proprietary Concerns - 

  • P & L accounts and Balance Sheets for last 2 years certified by a CA
  • ITR Copies for last 2 years

Partnership Firms – 

  • P & L accounts and Balance Sheets for last 2 years certified by a CA
  • ITR Copies for last 2 years
  • Partnership Deed/ Trust Deed
  • Letter of Authority

Companies – 

  • P & L accounts and Balance Sheets for last 2 years certified by a CA
  • ITR Copies for last 2 years
  • Memorandum of Association and Board resolution authorizing one directors to execute the agreement

Vehicle Specific Documents required from all categories of applicants – 

  • RC Copy
  • Insurance copy
  • Valuation form from the bank’s authorized valuation agency

All of the above given list of documents have to be duly submitted to complete the application process.

The bank will review the documents submitted and will process the application based on its satisfaction.

Features of Kotak Mahindra Bank Used car Loans

Kotak Mahindra Bank has many unique features as well as higher financing limit as compared to other lenders in the market that make it an attractive option for borrowers. The details of the bank’s used car loans are highlighted below.

Amount to be sanctioned as a loan – 

The bank offers many loan options for used car applicants.

Pre-Approved Loans – 

Kotak Mahindra Bank provides the facility of micro-financing in the form of a Pre-approved loan to the extent of Rs. 1,50,000. Such loans are sanctioned with minimum documentation and for lesser tenure (maximum tenure is 60 months or 5 years).

Preferred Segment Loan – 

Loans under this category are sanctioned to the preferred customer base according to the bank with hassle-free processing of the loan. Used Car loans in this category range from Rs. 1,50,000 to Rs. 15,00,000. The maximum loan that can be sanctioned under this segment is 90% of the value of the car subject to a maximum of Rs. 15,00,000.

Also, the tenure, in this case, is 60 months (5 years).

Approve your Own loan – 

This category targets salaried persons specifically. The maximum amount of loan that can be disbursed in this category is calculated to be a maximum of 2 times of the person’s annual salary, provided that the monthly installments towards the repayment of the loan taken (EMI) is not more than 40% of the net salary of the individual.

The tenure in this case is also a maximum of 60 months or 5 years.

The bank also has other financing options like,

  • Taking over the person’s existing car loan and generating cash. This is done when the bank takes over the loan from a bank where the foreclosure charges are lower than what Kotak Mahindra Bank actually funds on the asset. This will help the borrower to generate cash and get more than 100% finance.
  • The bank also allows refinancing options which is essentially cash against the existing car of the applicant. The applicant can pledge his/her existing vehicle that is free from any loan or hypothecation charge and avail a loan under the refinancing option.

Rate of Interest – 

The rate of interest for Kotak Mahindra Used Car loans is around 17% approximately. The rate of interest is calculated based on many factors like,

  • A credit score of the applicant
  • Amount of loan
  • Tenure of the loan
  • Relationship of the applicant with the bank, etc.

Margin – 

The bank requires the applicants to pay a margin of minimum 10% subject to cases to case basis.

Security/ Collateral – 

The bank requires the hypothecation charge on the vehicle to be registered with the RTO. This is considered as primary security against the loan. Collateral/guarantee may be required in case the applicant does not meet the basic income criterion or if the credit score of the applicant does not match with the guidelines set by the bank.

Other charges – 

Kotak Mahindra Bank charges a prepayment charge on its customers to the extent of 5.21% of the outstanding principal. Prepayment of loans is, however, not allowed before completion of 6 months of the loan.

The bank has a host of other charges on its used car loans, the detailed list of which is available at the bank’s website under the following link.

Home  Charges and Fees

Kotak Mahindra Bank Emi Calculator

Kotak Mahindra Bank provides its customers the benefit of estimating the proposed EMI on the loan to be taken from the bank. Customers can calculate the correct EMI to be paid by them by using the bank’s Emi calculator and thereby avoid any unnecessary or unexpected burden of expenses on themselves.

The bank also facilitates the customers to check if they are eligible for getting a loan from the bank under their ‘Car loan Eligibility Calculator’.

The bank will require the details of the vehicle to be purchased as well as the applicant’s personal and professional details to check his/her eligibility for getting a loan from the bank.

Applicants can find the link for calculating the proposed EMI for a used car loan as well as checking their eligibility to get the loan under the following link.

Home  EMI and Eligibility Calculator

Kotak Mahindra Bank Customer Care

The bank has many ways for the customers to contact them in case of any assistance needed or for any information required by them for used car loans. The customers can contact the bank through the following channels.

Postal Address – 8-9, Ground Floor, 

    Raghunath Nagar,

    M.G. Road,

    Shriram Hospital,

    Agra – 281002

Phone – 0562-4022411

  • Phone – 1800 209 5732 (available from Monday to Friday between 9.30 am to 6.30 pm)
  • Email Id – service[dot]carfinance[at]kotak[dot]com

FAQs – Kotak Mahindra Bank Used Car Loans

1. Does the bank have any condition for the maximum age of the vehicle to be purchased using a used car loan?

No. The bank has not set any condition regarding the age of the vehicle in order to apply for the used car loan.

2. What is the tenure of the used car loan of the bank?

The tenure of the bank’s used car loans is 5 years or 60 months.

3. Can a person prepay the used car loan?

The bank allows a person to prepay the loan after completion of 6 months from taking the loan.

4. What is the maximum amount of loan that can be given under the preferred loan segment?

The bank can sanction a loan up to 90% of the value of the pre-owned vehicle subject to a maximum of Rs. 15,00,000.

5. Does the bank require a third party guarantee?

The bank will require a third party guarantee in case the credit score of the applicant is lower than the acceptable range or if the applicant does not meet the minimum income criterion of the bank.

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