A SUMMER TRANING PROJECT

REPORT
ON
RETAIL BANKING
IN PARTIAL FULFILMENT FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
from
Dr APJ Abdul kalam Technical university
( 2015-2017)

Under the guidance:- Submitted By:

Mr sachin Tripathi Richa chaudhary
MBA 3rd(sem)
ROLL NO. 1575670047

INSTITUTE OF MANAGEMENT RESEARCH AND

TECHNOLOGY
GOMTINAGAR , LUCKNOW

1
CERTIFICATE FROM THE COMPANY

2
 DECLARATION

I hereby declare that the following project report titled RETAIL

BANKING KOTAK MAHENDRA BANK (OPERATIONAL
MANAGEMENT) is an authentic work done by me. This is to declare
that all the work indulged in the completion of this work such as
research, data collection, analysis is a profound and honest work of
mine.

Richa chaudhary
MBA 3rd(sem)
ROLL NO. 1575670047

3
 ACKNOWLEDGEMENT

I take this opportunity to place on record my grateful thanks and

gratitude to all those who gave me valuable advice and inputs for my
study. My study could not have been completed if I had not been able to
get the reference materials from the company.

I express my sincere regards to my guide for support and guidance.

Last but not least, I would also like to express my thanks to my family
members who inspired me to put in my best efforts for the research /
project report.

Richa chaudhary
MBA 3rd(sem)
ROLL NO. 1575670047

4
 PREFACE

As a part of the syllabus MBA I was assigned some practical and

theortical project work. In partial filfillament of the MBA course. I have
prepared a comprehensive project report on RETAIL BANKING study
of management will be immaterial if it not coupled will pratical learning
aspect of the business.It gives the student on opportunity to learn the
connection between comparison and execution to text and verify
application of theories and help the comparison of management theories
and practice

5
 TABLE OF CONTENT

SR. TOPIC PAGE

NO. NO.
1. CERTIFICATE FROM THE DEPARTMENT 2
OF THE INSTITUTE
2. CERTIFICATE FROM THE COMPANY 3
3. DECLARATION 4
4. ACKNOWLEDGEMENT 5
5. INTRODUCTION 7
6. COMPANY BACKGROUND 11
7. HISTORY OF ING 25
8. PERFORMANCE MANAGEMENT 39
9. ORGANISATION CHART- ING VYSYA 45
BANK DEPARTMENTS
10. RESERVE BANK OF INDIA’S 47
RECCOMANDATION
11. RESEARCH METHODOLOGY 55
12. ANALYSIS AND FINDING 57
13. CONCLUSION 96
14. RECOMMENDATION 97
15. ANNEXTURE 98
16. BIBLIOGRAPHY 101
INTRODUCTION

INDUSTRY:-
RETAIL BANKING SYSTEM:-

6
It is high outlay business with low margins which news the need for
efficiency with fast and economical delivery channels. As the consumer
behavior has under gone a drastic change in the recent past to change
their time of business.

As result of that most of the banks are coming with various product and
services for their consumers, which are called, retail banking system. It
involves financing for personal purchasing from buying a household
item, vehicle, shop to buying a house.
All these financing are given in the form either credit card or loan.

The other important contents of retail banking are:-

1. Card management
2. Branch Automation
3. Bill Payment
4. Basic offerings
5. Value added service
6. Credit management
REATIL BANKING IN NDIA AND ITS PROSPECTIVE

Retail banking (sales) is in a booming scenario at the moment. to understand

the reasons for this booming we have to negotiate the following reasons.

Changing government policies

7
The governments in the last decade have taken some extraordinary steps
regarding the economy, these are -

(a) Indian economy has opened - Indian economy has got globalize in
1992 and till then
it has been getting the taste of international market. the things happening
in the international scenario is reflecting in Indian market also.
(b) Reducing import duties- it means import duties go less and varieties
got increased.
(c) Earning of the people increased- the PCI of Indian people increased
significantly in the Last decade and so the earning in comparison to
things.
(d) Flow of reputed international brands to India- various MLCS are
coming to India to do business and that is boosting the availability of the
choices.
(e) Strong competition among FIs - lots of financial institutes and FIs
have been grooming in India and there is a very strong competition
going on to earn more profit.
(f) Free presence of foreign investors - government allowed foreign
institutional investors to invest unto 100% in various sectors.
(g) Decreasing interest rate - in international scenario, the interest rates
of banks is lesser than Indian bank. As India became globalize economy
it became necessary for RBI to decrease the Interest rate so that Indian

8
banks can compete internationally.
(h) Overall due to these revolutionary steps economy became more
strong and stable

Changing consumer behavior -

It is one of the basic reason because without change in attitude banks
cannot develop alone.
(1) It was an old phase "I don’t need" .Now Indian people or customer’s
wants to have the authenticity whichever comes in their way?
(2) Using various high tech communication system - TV has become a
necessary item and in this advertisement became necessary. So this
flashy and attractive advertisement
solely attracting all kinds of house holds.
(3) Changing the vision of life - now a day people live in the present not
in the future. Because they feel more secured about the future .moreover
the western culture affecting the mind of the Indian people.

BENEFITS TO THE CUSTOMER:

(1) Consumer can realize the dreams easily without accumulating money
(2) Easy to get the financing
(3) Very easy payback system (low EMI)
(4) Low interest rate
(5) Can invest accumulated money in productive things.

9
BENEFITS TO THE FINANCER

(1) The ideal money of the financial institutes is going to start earning
(2) Risk of financer is going less because it is not a single client borrowing large
amount
(3) Earning for long period (say 7 yrs)

RISK AND REMEDIES:

For customer -
(1) Returning capability may get reduced - For this customer has to
ensure his loan
(2) Inability to take up further obligations.-for this there should be a
proper planning
before taking a loan
(3) consumer is not traceable -for this it is necessary to take a calculated
Risk For financer -
(1) Death of customer
For this financer can take following steps
- Bank takes guarantee of other people
- Can give insurance package with loan.

(2) Customer may not ready to pay

10
-For bank can take over the property of customer

RETAIL BANKING A GAINING PROCESS FOR ALL

Retail banking now a days booming only because it is a win -win

process for all where nobody looses neither Neither the customer nor the
financer For customer it is a great opportunity to up grade his standard
of living. Right now instead Of waiting for years to accumulate the
amount For manufacturers its stimulates demand and lowers inventory

11
-For middleman it is a sales boosting factor or device And For players of
retail banking it is a means of profit generation Moreover the buy-now-
pay later culture is still infant in India and is evolving thought various
Forms like consumer landing, consumer credit, consumers loan, family
borrowings, and daily payments Schemes etc.

COMPANY PROFILE

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KOTAK MAHINDRA BANK.

Kotak Mahindra bank is an private sector banking headquartered in

Mumbai .In February,2003 reserve bank of india (RBI) gave the license
to kotak Mahindra finance ltd.
As 30 september 2014, Kotak Mahindra bank has a network of 641
branches and over 1,159 ATM spread across 363 locations in the
country. The bank which has garnered positive reviews from its
customer and client before its merger with ING Vysya, had around
29000 employee.In 2014 it was fourth largest private bank in india.
Type - Public company
Industry – Banking, Financial services
Founded – 1985
Headquarter – Mumbai,india
Product- Deposit accounts, Loan, Investment services
Websit – www.kotak.com

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Kotak Mahindra group,established in 1985 by uday kotak, is an Indian
financial service conglomerate.In feburary2003,kotak Mahindra finance
ltd (KMBL), the group flagship company recived a banking lincense
from(RBI). With this (KMFL) became the first non –banking finance
company in india to be converted into a bank ,kotak Mahindra
bank(KMBL).

AWARDS & ACHIEVMENT

FY2015-16
~Kotak Mahindra bank (KMBL):-
1- Uday kotak wins entreprenure of the year award at forbes india
leadership award 2015.
2- Uday kotak received the AIMA-JRD Tatacorporate leadership award
2015 at AIMA- s 2nd National leadership conclave.
3- Jaimin Bhatt,president & group CFO, recognised with ICAI award
2015 under the CA CFO Banking sector category.

14
4- Finnoviti award 2016 for bharat banking app by banking frontier’s
magazine.
5- Best debit card port folio growth award for Indian & south asia at
visa future of digital payment forum 2015.
~ Kotak wealth management (KWM):-
1-Best private banking service overall india
2-Best bank in india by euromomey award for Excellence asia 2015.
3-Best private bank in india by finance asia country award 2015 for the
7th time in a row.
~Kotak institutional Equities (KIE):-
1-Ranked # 1across domestic & foreign brokerages.
2-Samar sarda- Ranked # 1 real Estate.
3-Rohit chordia- Ranked # 2 in telecommunication.
4-Harish bhihani- Ranked # 2 in capital goods.

15
Insurance Europe

Operates the insurance activities in the Netherlands, Belgium, Spain,

Greece and Central Europe and asset-management activities in Europe.
In these countries we offer life insurance with special attention for
pensions. In the Netherlands and Belgium we also offer non-life
insurance.

Insurance Americas

Holds insurance operations and asset-management activities in the

Americas. It is well established in the US with retirement services,
annuities and life insurances and has leading positions in non-life
insurance in Canada and Mexico. Furthermore, we are active in Chile,
Brazil and Peru.

Insurance Asia/Pacific

Holds the life insurance operations and asset/wealth management

activities in Asia/Pacific. It has well established positions in Australia,
Hong Kong, Japan, Korea, Malaysia and Taiwan. The activities in
China, India, and Thailand are future growth engines for ING.

16
Wholesale Banking

Takes care of the global wholesale-banking operations. It has five

divisions: Clients, Network, Products, Corporate Finance and Equity
Markets, and Financial Markets. Wholesale banking offers a full range
of products to corporates and institutions in the home markets in the
Benelux countries and elsewhere it operates a more selective and
focused client and product approach.

Retail Banking

Holds retail banking activities in the Netherlands, Belgium, Poland,

Romania and India. Retail Banking also offers private banking in
selected markets; for instance in the Netherlands, Belgium, Switzerland,
Luxembourg and several countries in Asia.

Operates direct retail-banking activities for individual clients in

Australia, Canada, France, Germany, Austria, Italy, Spain, United
Kingdom and the United States. Main products offered are savings and
mortgages. A separate activity is Card, which manages a credit-card
portfolio within the Benelux.

ORGANISATION CHART- KOTOK BANK

DEPARTMENTS
DIFFERENT DEPARTMENTS
Retail Banking

17
Wealth Management

Business Banking Division

Agriculture & Social Banking

NRI Banking Services

Corporate & Investment Banking

Emerging Corporates

Private Banking

Whole Sale banking

Financial Market

Mutual Funds

Life Insurance

Payments

Cash Management Services

Customer service

Trade Finance Services

Home Loan

18
Personnel Loan

HR

ITPL

Corporate Services Department

Corporate Sales

Locker

Credit cards

19
RESERVE BANK OF

INDIA’S

RECCOMANDATION

20
 RESERVE BANK OF INDIA’S ON RETAIL BANKING:-

On the basis of the recommendations of the Working Group on Lenders'

Liability Laws constituted by the Government of India, RBI had
examined, in consultation with Government, select banks and financial
institutions, the feasibility of introducing the Fair Practices Code for
Lenders. The guidelines have since been finalized and banks/ all India
Financial Institutions have been advised by to adopt the broad guidelines
and frame the Fair Practices Code duly approved by their Board of
Directors. The broad guidelines of RBI address the following issues:

Applications for loans and their processing.

Loan appraisal and terms/conditions.

Disbursement of loans including changes in terms and conditions.

Post disbursement supervision.

Other general matters.

Grievance redressal mechanism.

II. Fair Practices Code:

Based on the above guidelines, the fair practices code proposed to be

followed by our Bank is discussed in the following paragraphs. The fair

21
 practices code, proposed for our Bank, is broadly in line with the
guidelines issued by RBI vide its letter no.
DBOD.Leg.No.BC.104/09.07.007/2002-03 dated May 05, 2003.

i) Applications for loans and their processing:

 
The code on applications and their processing will be applicable
for all priority sector loan applications up to Rs.2 lacs. The
following code is proposed to be followed:

a) A comprehensive loan application has been drawn up. The loan

application shall be obtained from all the applicants. The format
has been drawn so as to include information about fees/charges
payable for processing at the time of issuing the sanction letter and
pre-payment options to enable the applicant to make comparison
with other banks

b) The application forms for schematic loans have been/will be

similarly drawn up according to specific features of the scheme.

c) The branch where the application is received shall give an

acknowledgement for receipt of the loan application, indicating
the time frame within which the loan application will be disposed
of.

d) The branch shall verify the loan application and if additional

22
 details/documents are required, it shall be intimated to the
applicant within five working days of receipt of the application.

e) The branch shall process the application without delay.

Wherever possible, branch shall convey reasons for rejection.
 
ii) Loan Appraisal and Terms and Conditions:
 
The guidelines on loan appraisal and stipulation of terms and
conditions are applicable to all the loan applications irrespective
of quantum of advance.

a) The sanctioning authority shall ensure proper assessment of the

credit application as per the extant instructions and credit policies
of the Bank. The availability of adequate margin and/or security
shall not substitute the due diligence on credit worthiness of the
customer.

b) All terms and conditions and other covenants of the sanction

shall be duly communicated in writing to the customer by an
authorized official of the Bank. In case the customer is an illiterate
or expresses inability to understand the terms and conditions, the
customer shall be orally explained the terms and conditions
relating to the sanction. The name and designation of the official
who has explained the terms and conditions of the sanction shall

23
be recorded on the sanction letter.

c) The acceptance of the customer shall be obtained on duplicate

copy of the sanction letter with the customer's signature and date.

d) A copy of the loan agreement along with all enclosures quoted

in the loan agreement shall be furnished to the customer at the
time of execution of documents.

e) The loan agreement shall clearly state that the credit facilities
are extended solely at the discretion of the Bank and that drawings
will be solely at the discretion of the Bank. These may include:

 i) Drawings beyond the drawing power/sanctioned limits.

ii) Honouring of cheques issued for purposes other than
specifically stipulated in the sanction.
 
iii) Drawings in an account once it is classified as NPA.
iv) Drawings in case of non-compliance of terms and
conditions by the borrower.
f) The sanction letter/ loan agreement shall clearly state that the
Bank does not have any obligation to meet additional
requirements if any, on account of growth in business, etc.

24
iii) Disbursement of Loans Including Changes in Terms and
Conditions:

a) The disbursement will be done only after compliance of all the

terms and conditions of the sanction by the borrower, to the
satisfaction/approval of the Bank.

b) Any change in terms and conditions of the sanction such as

interest and charges will be notified to the borrower before
  effecting the changes. Any changes which are generally applicable
to a category of borrower shall be notified by display on the
Branch Notice Board.

c) Any change in interest rate and charges will be effected only

prospectively.
iv) Post Disbursement Supervision:
  a) Branches will have to ensure that post disbursement
supervision, particularly in respect of loans up to Rs.2 lacs, is
constructive with a view to taking care of any 'lender related'
genuine difficulties that the borrower may face.

b) The post disbursement supervision such as submission of

periodical reports and periodic inspection will be stipulated at the
time of sanction of the loan. The sanction letter also would

25
 mention whether the Bank/borrower will bear the cost of
inspection.

c) The Bank will issue notices to the borrower in advance in case

the Bank decides to recall the advance/accelerate the
payment/accelerate the performance under the loan agreement or
seeking additional securities.

d) The Bank will release all the securities on receiving full

payment of the loan subject to any legitimate right or lien for any
other claim Bank may have against borrowers. In case the Bank
decides to exercise right of set off/lien, the borrower will be
notified about the same with full particulars about the remaining
claims and the documents under which the Bank is entitled to
retain the security till relevant claim is paid/settled.
   
v) Others:
 
a) The bank will not interfere in the affairs of the borrower except
for those provided for in the terms and condition and loan
documents, such as periodic inspection, scrutiny of books of
accounts, verification of stocks and book debts and scrutiny of
QIS statements.

b) In case any new information not disclosed earlier by the

26
 borrower, has come to the notice of the Bank, the Bank will have
the right to elicit the necessary information from the borrower and
Bank shall have full right to review the continuation or otherwise
of its sanctioned credit facility to the borrower in the background
of such information.

c) While, the Bank may participate in credit-linked schemes

framed for weaker sections of the society, the Bank shall not
discriminate on grounds of sex, caste and religion in the matter of
lending.

d) In the matter of recovery of loans, apart from normal

communication and discussions with the borrowers, the Bank shall
resort to lawful means for making recovery of its dues.

e) In case of request for transfer of borrow account either from

borrower or from other banks/FIs which proposes to take over the
loan, the Bank's consent or objection, if any, shall be conveyed
within 21 days from the date of receipt of the request.
 
vi) Grievance Redresses:

  Though the sanction of the loans will be at the sole discretion of

the Bank, borrowers will have an opportunity to appeal against the
decision of the Bank's functionaries. Any such grievance received

27
 from a borrower will be heard and disposed of by next higher
authority. For this purpose the following decision review structure
is proposed to be put in place:

Grievance against decision of reviewing authority

Branch Head
 EVP & Chief Credit Officer/ EVP (Retail) as the case may be
 VP/AVP (Credit) at Corporate Office EVP & Chief Credit Officer
 VP/AVP (Retail) at Corporate Office EVP (Retail)
 EVP & Chief Credit Officer/ Executive Director Managing Director

The Bank will review at periodical intervals, compliance of the fair

practices code and effectiveness of the grievance redressal mechanism.

GROWTH OF RETAIL BANKING SALES OVER THE YEARS:-

28
(Rs Bn) 2003-04 2004-05 2005-06 2006-07 CSGR(%)

CAR FINANCE M 121.80 142.40 170.90 212.40 20.20

MERKET
HOUSSING 130.00 160.00 210.00 360.00 40.00
FINANCE
PERSONAL 15.00 20.00 28.00 39.20 37.30
LOAN
CREDIT CARD 5.00 11.20 24.80 34.20 89.00

TWO WHILLER 30.40 36.80 50.80 68.60 30.80

CREDIT
COMMERCIAL 61.60 62.10 76.70 92.00 14.20
VEHICLE
CONSUMER 15.20 17.90 21.00 25.20 18.20
DURABLE
TOTAL ANNUAL 378.90 450.50 582.20 831.70 29.60
RETAIL MERKET

RESEARCH METHODOLOGY:-

The research is carried on qualitative and quantitative platform. In

qualitative platform, personal interviews are conducted with managers of

29
KOTAK BANK . The personal interviews gave us the insight in
making the questionnaire. The questions were based upon the interaction
between us and managers.

On quantitative platform, we make the questionnaire to gather the

information for the research work. The questions in questionnaire were
both clo0sed and open ended.
The purpose is to gather information and opinion of the people.

The sources of data

(1) Primary.
(2) Secondary
Secondary data was gathered from the following source:

1. Bank’s Brochures.
2. News papers
3. Internet.
4. Business Magazines
5. D. S. A.
The primary data were gathered mainly through questionnaire and
observation methods. The questions were made to gather information in

30
the form of quantitative and qualitative. The questions were grade
keeping the objective as the base.
The information represented by questionnaire is meant to support the
research process of comparison.

The research is carried on qualitative and quantitative platform. In

qualitative platform, personal interviews were conducted with managers
of KOTAK BANK . The questions were based upon the interaction
between us and the managers.

We made the questionnaire to gather information for the research work.

The question in there was both closed and open ended. The purpose is to
gather standardized information and opinion of the people.

ANALYSIS AND FINDING

31
(1) Which bank you are banking with?
i. KOTAK BANK (b)PNB (c) HDFC (d) OTHERS

20%

35%

ING
HDFC
PNB
OTHER

25%

20%

(2) Are you satisfied with your bank?

(a)Yes (b) No (c) Cant says

ARE YOU SATISFIED WITH YOUR BANK

NO
26%
YES
NO
YES
74%

(3) What is your occupation?

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 (a)Gov employee (b) Private sector employee
(c)Businessman (d) Other

WHAT IS YOUR OCCUPATION

6%

GOV EMPLOYEE
26% 40%
PRIVATE EMPLOYEE
BUSINESSMAN
OTER

28%

(4) What kind of account you have?

( a) saving ( b) current(c) fixed deposit

WHAT KIND OF ACCOUNT YOU HAVE

16%

SAVING A/C
CURRENT A/C
22%
62% FIXED DEPOSITE

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(5) Is external person’s interference through bank to get recovery of
loan is correct or not?
(a) Yes (b) No (c) Cant say

IS EXTERNAL PERSON'S INTERFERANCE THROUGH BANK

TO RECOVERY OF LOAN IS CORRECT OR NOT

10%
20%

YES
NO
CAN'T SAY

70%

6 Have you taken loan from KOTAK BANK OR OTHERS BANKS?

(a) KOTAK BANK (b) OTHERS BANK

34
 HAVE YOU TAKEN LOAN FROM ICICI OR PNB

70 62
60
50 38
40 HAVE YOU TAKEN LOAN
30 FROM ICICI OR PNB
20
10
0
ICICI
ING PNB
OTHERS

7 Do you think government bank’s have more formalities in

comparison to private banks?
(a) Yes (b) No

DO YOU THINK GOVT BANK HAVE MORE FORMALITIES IN

COMPARISION TO PRIVATE BANK

34%
YES
NO
66%

35
(8) Why you chose KOTAK BANK OR Others banks?

80 75
70 65
60 60
60 54 TIMING
50 46 FAST SERVICE
40 40
40 35 FACILITY
30 25 PERSONAL ATTENTATION
20 ATM
10
0
ICICI PNB

WHY YOU CHOOSE ICICI OR PNB

KOTAK OTHERS
BANK

(9) Which bank you prefer to loan KOTAK BANK or PNB?

36
 120
100 CAR LOANS
100
COMMERCIAL LOAN
80 70
65 HOME LOAN
60 55 54 50
60 46 50 45 LOAN AGAINEST SECURITY
40
35 PERSONAL LOAN
40 30
LOANS AGAINST MORTAGE
20
0 EDUCATION LOAN
0
ICICI PNB

WHICH BANK YOU PREFER TO LOAN ICICI OR PNB

10 Which bank will you prefer to further transaction in future?

(a) KOTAK BANK (b) PNB

WHICH BANK YOU PREFER TO FURTHER

TRANSACTION

40
% PN
B
ICIC
60 I
%

Analysis of Hypothesis:-
Chi Square Test

37
The Chi-Square Test procedure tabulates a variable into categories and
computes a chi-square statistic. This goodness-of-fit test compares the
observed and expected frequencies in each category to test either that all
categories contain the same proportion of values or that each category
contains a user-specified proportion of values.
Let null hypothesis: People prefer the loan of KOTAK BANK.
Than alternative hypothesis: people don’t prefer loan KOTAK BANK.

38
Types of Obs. Exp. o- e (o-e)2 (o-e)2/e
loan given Frequency(o) Frequency(e
by ING )
Car loan 21 19 2 4 0.21

Commercia 28 24 4 16 0.67
l loan

Home loan 18 16 2 4 0.25

Loan 14 13 1 1 0.77
against
security
Personal 9 8 1 1 0.125
loan
Loan 10 20 - 10 100 5
against
Mortgage

Degrees of freedom = 6-1=5

At 5% level of significance, value of chi square for DF (5) = 11.07

Calculated value = 6.332

39
Since calculated value is lower then the tabulated value of chi square,

Therefore Null hypothesis is proved.

Hence, it is proved people prefer loan to KOTAK BANK because it

good service.

TYPE OF SALES (ORG STRUCTURE):-

KOTAK BANK

40
REGIONAL SALES MANAGER

PRODUCT MANAGER

BRANCH MANAGER

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41
 SPECIAL FEATURES OF KOTAK BANK

 The # 1 financier for car loans in the country.

 Preferred financier status with 12 leading car manufacturers.

 Largest network of branches and ATMs amongst private &

foreign banks.

 Largest network of more than over 800 Direct Sales Agencies

over 275 cities.

 Tie-ups with all leading dealers to ensure one stop solution.

 Flexible schemes & quick processing.

 Finance available for used cars.

LOAN AMOUNT

1) New car
KOTAK BANK finance up to 90% of the ex-showroom cost of the car.

The amount financed will depend on the Loan to Value (LTV) ratio. The
LTV ratios are applicable on the invoice value of the cars. Customer has
to bear registration and insurance charges.

The LTV also depends on the car model. Higher LTV ratios are
available under specific enhanced income eligibility criteria. Please
contact our representative for further details.

Minimum loan amount for new car Loan is Rs.1 lack.

2) Used car

For a used car, finance up to a maximum of 80% of the valuation

amount provided. You can also avail of a refinance against an existing
car. In this case, the funding will be 70% of the valuation amount.

Minimum loan amount for a used car loan is Rs. 75000/-

3) Loan Enhancement

To enhance your loan amount, the certified income of the co-applicant is

considered, if requested by the applicant. The co-borrower can be the
spouse or son/daughter living in the same city. Since the co-borrower is
the joint applicant for the loan, he/she has the obligation to repay the
loan along with the main applicant. Similarly, a guarantor can be any
relative or director (in case of a private limited company). The guarantor
provides the guarantee that the customer will repay the loan as per the
terms & conditions of the loan. However, in both cases, the asset has to
be registered in the name of a single owner, not joint ownership.

RATES AND FEES

KOTAK BANK bank offer most competitive rates in the industry.

Interest rates also depend on Car model, Loan Tenure, Customer
Location and Profile, etc.

For more information on KOTAK BANK car loans and interest rates
kindly contact Branch or 24 Hour Customer Care Center and they will
send representative at your place. You can also submit your request
online or contact nearest Car Dealers for the same.

 Interest is calculated on a monthly reducing balance and the rate

remains unchanged till the maturity of the loan.

 No processing fee for Loans on New Cars

 KOTAK BANK charge a processing fee of Rs.1000 for used car
loans on loan amounts up to Rs.1.10 lack

APPLICATION PROCESS
  You may contact the nearest KOTAK BANK Bank branch for the
best deal available on the car of your choice.

 You need not visit our office for documentation. The documents
may be handed over to our direct marketing associate/ dealer you
are dealing with. If you wish to cancel your loan application and
the loan has not yet been disbursed, no letter is required. But if the
loan has been disbursed, a letter is required requesting for
cancellation of the loan.

 You can apply for another loan and we shall sanction the loan
based on your repayment capacity.
 To verify your application status, contact the representative who is
processing your loan application.

DOCUMENTATION

Salaried Self-Employed Partnership Private / Public

Individual Individual Firm Ltd Co
  Application Application Application
     
Application form form form form
    Photograph Photograph of Guarantor's
 
Photograph signing partner photograph (for
 
private limited
company only)
Proof of bank One proof of Last two years' Last two years
account income (ITR for income proof audited
continuity the last two years (audited account financials
) or ITRs + CA
certified
financials)
One income One proof of Partnership deed Certified true
proof for the last residence copy of the
two years (ITR, (driving license / MOA & AOA
Form 16, salary voters' identity
slip) card / ration card
/ passport /
utility bills for
the last 3
months)
One proof of One proof of Partners Board resolution
identity (driving residence authority letter (format available
license / voters' (driving license / on request)
identity card / voters' identity
passport / PAN card / ration card
card / photo / passport /
credit card / utility bills for
photo ration the last 3
card) months)
One proof of One proof of    
residence office address
(laminated (utility bill /
driving license / lease deed /
voters' identity excise or sales
card / photo tax receipt /
ration card / Shops and
passport /utility Establishment
bills for the last 3 Act Registration)
months /
company ID -
limited company
or government /
PAN    card)

HOW TO REPAY
 Repayment tenure ranges from 1 year to 7 years for New Car
Loans. 6 Year and 7 year loans are available for specific models.

 Maximum loan tenure for used car would depend on the age of the
car. The car should not be more than 8 years old at the time of
maturity of the loan.

 You may change the tenure of the loan before the loan is
disbursed. The interest rate & EMI would change accordingly.

 The repayment due dates are 1st and 7th of every month and would
depend on the date of disbursement. Payment due dates cannot be
changed.

 You can make the Payments through post-dated cheques (PDCs) or

direct debit mandates (for KOTAK BANK account holders) only.
Payments through cash or credit cards are not accepted.

 You may change the PDC's only in case your Bank Account is
changed. However, we would require verification of signatures by
new banker. A nominal fee of Rs. 500/- (Swap Charges) would be
charged for exchange of cheques.

 A full pre-payment of the loan is accepted. Part pre-payment is not

allowed.
  We charge pre-payment fee of 4% on the outstanding principal
amount if pre-payment is requested within 6 months from date of
Loan Agreement. Pre-payment after 6 months from the date of
agreement attracts Pre-payment fee of 3% of Outstanding Principal
Amount.
 We charge Rs.500 per bounced cheque.

DISBURSMENT

 The loan will be disbursed within one day of submitting all the
post sanction documents as listed below.

 If the vehicle is readily available with the dealer, you can get your
as soon as the disbursal is made to the dealer. However KOTAK
BANK is in no way responsible for car deliveries as they are
regulated by the car manufacturer's delivery schedules.
 You can retain the original Registration Certificate, Invoice and the
Insurance Policy. We simply require a photocopy of these
documents.

SPECIAL SCHEAMES
 Credit Card Scheme: Submit the last 4 billing statements of a
premium credit card that you hold and you can be free from any
income documentation.

 Repayment Scheme: If you have availed of a car loan/ home loan

from a leading financier, bank, or finance company, all you need to
do is provide us the repayment record. You need not provide your
income proof under this scheme.

 No Income Proof Scheme: If you are a self-employed individual

who has been in business for at least 3 years and own a house or
office, this special scheme is designed for you. No need to provide
your income details under this scheme.

 For more information on our car loans offers kindly contact our
Branch or 24 Hour Customer Care Center and we will send our
representative at your place. You can also submit your request
online.
 CAR LOAN – TOOLS THAT CAN BE USED

PATROL OR DESAL CAR

This tool should help you arrive at the decision of which car to opt for.
However, subjective factors like noise and vibration are not considered
here.

NEW OR OLD CAR

This tool will help give you an indication on whether or not you should
go in for a new car or a used one.
 FREQUENTLY ASKED QUESTION

What are the loan tenure options?

The tenure of the loan could range from one to seven years for new cars
and from one to five years for used cars.  

What are the lending rates?

The lending rates vary on the basis of discounts, which are offered by
manufacturers and dealers. KOTAK BANK has a tie-up with most of the
manufacturers and authorized dealers and our sales team will help you
negotiate the best deal on your car loan.

How is the interest charged/calculated?

Interest is calculated on a monthly reducing balance basis.

Do I have to pay any additional charges?

We charge a processing fee of Rs.1000 for used car loans on loan

amounts up to Rs.1.10 lac.

 How do I approach KOTAK BANK for a Car Loan?

You can approach us in any of the following ways

 Apply online
 Write to us at customer.care@ KOTAK BANK bank.com
  Call us at our 24 hour Customer Care Center
 You can just walk into any of our branches
 Contact any of our direct sales agents.

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

The loans are generally approved within 24 hours of submission of
complete documentation.

Who can be the co-applicants for the loan?

Your spouse or any blood relative staying in the same residence can be a
co-applicant.

 Is a personal guarantor a must?

No, a personal guarantor is not a must.

What security/collateral do I have to provide?

No additional security/collateral needs to be provided, apart from the car

against which the loan is granted, being hypothecated to KOTAK
BANK.

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

Yes, it is possible for you to avail of a loan even if you do not meet all
the criteria, at the discretion of KOTAK BANK.
How do I repay the loan?

The loan can repaid through post dated cheques drawn on KOTAK
BANK Bank Ltd. Alternately, if you have a Bank account with KOTAK
BANK, you can issue a direct debit mandate to your existing KOTAK
BANK account for the repayment.

Can you prepay your loan?

Yes, you can fully prepay your loan by paying the principal outstanding.
A nominal charge of 4% of the outstanding principal if the pre-payment
is within 6 months from date of agreement. Pre-payment after 6 months
from the date of agreement will attract a charge of 3% of the outstanding
principal. A part pre-payment is not allowed.

What is a Monthly Reducing Balance?

In the case of monthly reducing balance method, the principal gets

reduced at the end of every month and the interest is calculated on the
outstanding principal at the end of the month.

What is an Annual Reducing Balance?

In the case of annual reducing balance method, the principal gets

reduced at the end of the year and the interest is calculated on the
outstanding principal at the end of the year.
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 host of other value added services, which are
complementary to the loan, however opening an account with us is not
mandatory.

What are the stages involved in availing a loan?

The stages involved are:

 Application
 Processing
 Documentation
 Sanctioning of the loan
 Disbursement

Does kotak bank have a loan for the car I want?

KOTAK BANK car loans are available for almost all passenger cars -
new as well as used.
  If I am not able to furnish my income documents is there a
special scheme for persons like me?

 Yes, KOTAK BANK has tailor made schemes for persons like
you.
We offer:

 Credit Card Scheme : You can submit the last 4 billing statements
of a premium credit card that you hold and you can be free of
income documentation

 Repayment Scheme : If you have availed of a car loan/ home loan

from a leading financier/ bank / finance company, all you need to
do is provide us the repayment record.

 No Income Proof Scheme : If you are a self-employed individual

who has been in business for at least 3 years and own a house or
office, this special scheme is designed for you. No need to provide
your income details under this scheme.

Can I avail of a loan on my existing car?

Yes, we do offer loans on existing cars, provided the cars are not
hypothecated to any financier.

SPECIAL FEATURES OF KOTAK BANKCOMERCIAL

 VEHICLE LOAN

 Reaches you through more than 180 locations across the country.

 Range of products under one umbrella.

 Funding of various products like HCVs, MCVs, Laves,

 3 wheelers , used vehicle funding , construction equipments &

farming equipment.

 Range of services like funding of new vehicles , refinance on used

vehicles , balance transfer

 on high cost loans , working capital loans & other banking

products.

 Preferred financier status with most of the leading manufacturers.

 Simple documentation.
 Quick turn around time.

 Flexible financing solutions to meet the individual requirement

ELIGIBILITY

 Any individual / company with 3- 5 years business experience.

 Ownership of a vehicle is not mandatory.
 Funding is extended to both transporters & captive consumers.
 LOAN AMOUNT

 Loan amount can vary from a few thousands to crores depending

upon the specific requirement.

 Funding can be uptos the extent of 100 % of the chassis; body

funding can be extended on special requirement & on the past
experience.=

 Tie up with the leading manufacturers enables us to give the best

deals to our customers.
 APPLICATION PROCESS

 Please click here if you wish to apply online for Commercial

Vehicle Loans and we will send our representative to visit you.

OR

 Please contact our representative near your residence / office and

he will help you fill in the application form.

 There is no need for you to visit our office. All formalities will be
completed at your doorstep itself.

 Once all the details are in our possession, the loan can be
sanctioned within 4 hours.

 As a policy we do not disclose the reasons for rejection.

 The asset will be hypothecated to KOTAK BANK Ltd. Till the

loan is repaid, KOTAK BANK retains the right to repossess the
asset in case a customer does not repay the loan. However, you are
still the owner of it and the invoice will be in your name. All the
original papers will be kept in your possession and photocopies
with KOTAK BANK Ltd.
  When the truck is invoiced before September 30th depreciation is
50%. From then onwards till March it is 25%. This is as per the
recent budget and is subject to changes as per government policies.

SANCTIONING

Loans are sanctioned for all fast-moving assets at locations where the
KOTAK BANK infrastructure is available – be it direct or indirect or
Direct Marketing Associates and authorized distributors.

While we generally undertake hypothecation funding, we also do HP

transactions. We also look into cases of taking over an old high-interest
loan.

Once all the details are in our possession, the loan can be sanctioned
within 4 hours.

When the truck is invoiced before September 30th, depreciation is 50%.

From then onwards till March it is 25%. This is as per the recent budget
and is subject to changes as per government policies.
 RATE AND FEES

 Our rates are one of the most competitive in the market.

 The interest rates are fixed for the tenure of the contract and are
calculated on a reducing basis.

 There is no processing or documentation fee.

REPAYMENT

 In general repayment period is of 3 -4 years, however depending

on the nature of the deal the tenure can vary from 6 - 60 months.
 In general the repayment is done via PDCs.
 Cheque bouncing charges would be as applicable.

 The PDCs must be issued from one account.

 The repayment schedule & the amortization schedule would be

sent on disbursement of the loan.
  Foreclosure of the loan is allowed at a charge of 2 % on the
principal outstanding.

 In the event of an accident, our local representative needs to be

informed of the same.

COMMERCIAL VAHICLE LOANS -TOOLS THAT CAN

BE USED

Presently, no tools are available for the Commercial Vehicle Loans

section. However, if there are any queries that you may have, please
contact your nearest dealer or send us a mail at info@ KOTAK BANK

REPAYMENT

 The interest rate is calculated on a monthly reducing basis.

 Loans against commercial property shall be offered only to

doctors.

 No fees on part prepayment.

  KOTAK BANK Home- Floating Reference Rate
THE KOTAK BANK

 Floating Reference Rate is currently 9.25 % p.a.

 What is the repayment tenure?

 Home Equity Loans - Maximum loan tenure of 15 years.

 Office premise loan - Maximum loan tenure of 15 years.
 Home loan - Maximum loan tenure of 30 years.

 How is the loan repaid?

All loan repayments are done via equated monthly installments (EMI).

 What is an EMI?

An EMI refers to an equated monthly instilment. It is a fixed amount

which you pay every month towards your loan. It comprises of both,
principal repayment and interest payment.
When does the repayment start?

EMI payments start from the month following the month in which the
full disbursement has been made.

How is the EMI paid?

The EMI is to be paid every month through post-dated cheques (PDCs)

or direct deductions from your salary. If you are opting for PDCs, then
you will have to provide 36 upfront. The PDCs are to be dated on the 1 st
of every month. However, if you receive your salary a few days later, no
problem. We provide the flexibility of dating the cheques for the 7 th of
the month.

What if a PDC bounces?

In the case of a bounced cheque or delayed payment, charges and

outstanding dues will be charged as per the prevailing company policy.
You can replace old PDCs with new ones within 5 - 7 working days

 What is pre-EMI interest?

In the case of part disbursement of the loan, monthly interest is payable

only on the disbursed amount. This interest is called pre-EMI interest
(PEMI) and is payable monthly till the final disbursement is made, after
which the EMIs would commence.
 When do I pay PEMIs?
The first PEMI is payable by cheque by the end of the month in which
the disbursement is made and each subsequent PEMI at the end of every
month till the commencement of EMI.

DISBURSMENT

Your loan will be disbursed after you identify and select the property or
home that you are purchasing and on your submission of the requisite
legal documents.

While you may be under the impression that the list of documents asked
for is rather extensive, please note that it is for your own good. Each and
every single document asked for will be verified and checked to ensure
your safety.

This may take some time but we want to ensure a clear title and will
complete all the legal and technical verifications to ensure that you have
full rights to your home.
The 230 A Clearance of the seller and / or 37I clearance from the
appropriate income tax authorities (if applicable) is also needed.

On satisfactory completion of the above, on registration of the

conveyance deed and on the investment of your own contribution, the
loan amount (as warranted by the stage of construction) will be
disbursed by KOTAK BANK

The disbursement will be in favor of the builder/seller.

List of documents for disbursement

Standard documents:

 Loan Agreements

 Disbursement Requests

 Post-dated cheques

 Personal guarantor’s documents, as the case may be

Some documents are specific to each state. For further information,

please contact the nearest office.
 HOAM LOANS-TOOLS THAT CAN BE USED

Adjustable Rate Home Loan EMI calculator :

If you want to apply for an Adjustable Rate home loan, this tool will
enable you to calculate your Equated Monthly Installment (EMI ) if you
know the value of the property, the loan amount your require and the
term for which you want to take the loan. You can check the EMIs for
different loan tenures to decide which would be most suitable for you.
The tool will compute EMI and also provide the interest rate that is
applicable.

Fixed Rate Home Loan EMI calculator

You can use this tool to calculate your EMI in case you wish to opt for a
Fixed Rate home loan. The tool will allow you to see the EMI and
interest rate for any given loan amount

FREQUENTLY ASKED QUESTIONS

What are the minimum & maximum loan amounts?

You can get a home loan ranging from of a minimum of Rs. 1 lakh to a
maximum of Rs. 1 crore. The loan amount depends on your repayment
capability and is restricted to a maximum of 85% of the cost of the
property or the cost of construction as applicable.

Repayment capacity takes into consideration factors such as income,

age, qualifications, number of dependants, spouse's income, assets,
liabilities, stability, continuity of occupation and savings history.

How is the interest charged/calculated?

 KOTAK BANK Home Loans has two schemes, (a) Fixed Rate Home
Loans (b) Adjustable Rate Home Loans. If you opt for an Adjustable
Rate Home Loan, the interest rate would vary with the KOTAK BANK
Home Prime Lending Rate. Under the Fixed Rate Home Loans the rate
applicable on the date of disbursement remains fixed during the entire
duration of the loan.

 Do I have to pay any additional charges?

You don't have to pay any processing fee - this offer is valid for a
limited period only. However, Administration fee of 0.5% of the loan
amount would have to be paid.

How do I approach KOTAK BANK for a Home Loan?

You can approach us in any of the following ways

 Apply online
 Write to us at customer.care@ kotak bank
 Call us at our 24 hour Customer Care Centre
 You can just walk into any of our branches
 Contact any of our direct sales agents.

Who can be the co-applicants for the loan?

You could include your spouse as a co-applicant for the loan and we
shall include his/her income to enhance your loan amount. Further, in
case there are any other co-owners they also need to be co-applicants.

Is a personal guarantor a must?

No, there is no personal guarantor required in most cases.

What security/collateral do I have to provide?

Typically the security for the loan is a first mortgage of the property to
be financed, by way of deposit of title deeds and/or such other collateral
security as may be necessary. The title to the property should be clear,
marketable and free from any encumbrances.

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

Yes, it is possible for you to avail of a loan even if you do not meet all
the criteria, at the discretion of KOTAK BANK

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 host of other value added services, which are
complementary to the loan, however opening an account with us is not
mandatory.

What are the stages involved in taking a loan?

There are two main stages -

1. Sanction of the loan, whereby you get an approval for a specific loan
amount based on the value of your property and repayment capabilities.
2. Disbursement of the loan amount

What are the various types of loans that KOTAK BANK Home
Loans provides?

 Home Loans
 Land Loans
 Home Equity Loans
 Office Premises Loans

All of these are available on an adjustable rate or a fixed rate.

What is a Monthly Reducing balance?

An Equated Monthly Installment (EMI) has 2 components, interest and

principal. When the interest is calculated on monthly rests, the principal
on which the interest is charged goes down every month. This results in
a significant saving for the customer over the tenure of the loan.
What is an Annual Reducing balance?

An Equated Monthly Installment (EMI) has 2 components, interest and

principal. When the interest is calculated on annual rests, the principal
reduces only at the end of the year. Therefore, you continue to pay
interest on a portion of the principal that you have already actually paid
back to the lending company.

When can I apply for a loan?

You can apply for a home loan even before you have selected your
property. The loan amount would be sanctioned or approved for you,
based on your repayment capability

Can KOTAK BANK Home Loans assist me in selecting an

accommodation of my choice?

Yes, we have a special service - KOTAK BANK Home Search. This

service provides the customer assistance in identifying a property that
fulfills your requirements from a vast database of properties, arranges
for site visits to the properties short listed by you, and helps with legal
documentation. This service comes to you completely free of cost for
first sale properties. This facility is available in select cities.

Can I get a loan for commercial property, like offices etc.?

Yes, we give loans to self-employed professionals for commercial
property.

When will the loan be disbursed?

Your loan will be disbursed on:

 Your identification and selection of the property.

 Submission of the legal documents.
 Legal and technical clearance of the property
 Investment of your contribution towards the property

What is an amortization schedule?

An amortization schedule is a table giving the reduction of your loan

amount by monthly installments. The amortization schedule gives the
breakup of every EMI towards repayment interest and outstanding
principal of your loan.

What are the tax benefits of taking a home loan?

The tax benefits on a home loan, under the Income Tax Act, are two-
fold:
 A)Principal repaid : Rebate under section 88 (2) of the Income
tax Act is available to individuals on repayment of the
principal portion as given below

Gross total income before Rebate

deduction available
Upto Rs.1,50,000 20%
More than Rs.1,50,000 but
15%
not exceeding Rs. 5 lakh
More than Rs.5 lakh None

 Moreover, the rebate is allowed up to the maximum limit of Rs.20,000

per financial year on the repayment of the principal sums, which need
not be out of income chargeable to tax of the year in which such
repayment is made.

B) Interest repaid: Under section 24 of the Income Tax Act , in case of

self-occupied property, deduction is allowed up to Rs.1,50,000 per
annum for houses acquired or constructed with capital borrowed after
March 31, 1999 as long as the acquisition or construction is completed
within 3 years from the end of the year in which such loan is taken.

Can I get IT certificates in the name of both the Applicant and co-
Applicant separately?
As per the IT rules only one certificate can be issued for a home loan
and hence one certificate will be issued in the name of both applicant
and co applicant.

When is the IT certificate issued?

The IT certificate will be issued at the end of a financial year. You can
expect to receive your copy of the IT certificate in the month of April or
May.

How can I get the tax benefit during the year?

You can request for a provisional IT certificate that can be issued any
time during the course of the year.

ELIGIBILITY

Shares

 Only resident individuals are permitted to apply .

 Hindu Undivided Families (HUFs), Limited Companies,
Partnerships, Sole Proprietors & NRIs are excluded.

 Loans are granted only against the list of approved scrip’s as

determined by KOTAK BANK.
  The applicant should be in the age group of 18 to 75 years.
 The applicant should be a subscriber to telephone (landline) either
at residence or office.

RBI Bonds

 Resident Individuals, Hindu Undivided Families (HUFs), Limited

Companies and Partnerships are permitted to apply.
 Non Resident Indians (NRIs) are excluded.
 The applicant should be in the age group of 18 to 75 years.
 The applicant should be a subscriber to telephone (landline) either
at residence or office.

Mutual Funds

 Only resident individuals are permitted to apply.

 HUFs, Limited Companies, Partnerships, Sole Proprietors and
NRIs are excluded.

 The applicant should be in the age group of 18 to 75 years.

 The applicant should be a subscriber to telephone (landline) either

at residence or office.
India Millennium Deposits (IMDs)

 Only non-resident Indian individuals can apply. In case a resident

has to apply he should have a guarantee of bonds from the NRI for
doing so.
 The applicant should be in the age group of 18 to 75 years.
 The applicant should be a subscriber to telephone (landline) either
at residence or office.

KOTAK BANK Bonds

 Only resident individuals are permitted to apply.

 The applicant should be in the age group of 18 to 75 years.
 The applicant should be a subscriber to telephone (landline) either
at residence or office.

Life Insurance Policies (Single Premium)

 Only resident individuals are permitted to apply.

 The applicant should be in the age group of 18 to 75 years.
  The applicant should be a subscriber to telephone (landline) either
at residence or office.

For all the above

 The applicant should be in the age group of 18 to 75 years.

 The applicant should be a subscriber to telephone (landline) either

at residence or office

Loan Amount

Shares

 You are given a drawing power up to 50% of the value of the

shares.
 Since the market price of the scrip’s keep fluctuating, the scrip’s
are revalued weekly (every Friday), or more frequently if required,
and the drawing power will be revised accordingly. If the new
drawing power is less than the outstanding in the current account,
 the customer is required to put in the difference amount or pledge
more shares to regularize the account. Alternately, if the drawing
power rises, the limit available to the customer also automatically
increases.
 Minimum loan amount is Rs 1 lakh.
 Maximum loan amount is Rs 20 lakh.
 The loan is applicable for a year and renewable at the end of each
year.

Bonds

 The loan amount will depend upon the value of bonds and also the
period left for maturity
 Loan amount will be between 70% and 95% of the value of bonds.

Mutual Funds

 50% lending on the NAV.

 Minimum loan amount is Rs.1 lakh.
 Maximum loan amount is Rs. 20 lakh.

India Millennium Deposits (IMDs)

 90% of the face value in rupees.

  Minimum loan amount is Rs.1 lakh.

KOTAK BANK Bonds

 Minimum Loan amount is Rs.50000

 Maximum loan amount is Rs. 20 lakh

Life Insurance Policies (Single Premium)

 Minimum Loan amount is Rs.50000

 Maximum loan amount is Rs. 2 cr

SANCTIONING

 Your loan will be sanctioned on completion of all the documents.

 You shall be required to fill the loan agreement and complete the
account opening formalities

In any of the following cases no residence cum identity proof is

required:

 Account introduced by KOTAK BANK Staff.

 Introduction by an existing bank customer.(Existing customer to
have a satisfactorily conducted account for at least 6 months)
 Letter from existing banker obtained in standard format.
 Customer existing account holder of bank for more than 6 months.
You will be able to enjoy all the benefits of a current account such as a

 A personalized cheque book

 ATM card
 Phone banking facility
 Internet banking facility

RATES AND FEES

 Interest is charged only on the amount drawn and for the period
that it is utilized.
 The interest is debited to your current a/c on the last day of every
month.
 The stamp duty varies in accordance with the stamp duty rates of
the respective states. This will be debited at the time of opening the
account.

HOW TO CONTACT KOTAK BANK

You can email us at customer.care@ kotak bank ..com

Alternatively,

You may call us at any of our Customer Care Centers.

FREQUENTLY ASKED QUESTION

What are the loan tenure options?

The initial tenure is for one year. At the end of one year, it will
automatically be renewed for another one year unless we receive
intimation in writing from you not to do so.

What are the lending rates? How much shall I pay for this facility?

KOTAK BANK Loans Against Securities comes to you at attractive

interest rates and are based on trends prevailing in the market at the time
of the loan. You pay only when you use the money and for the number
of days the money is used. The rates vary according to the product
variant.

How is the interest on my account calculated?

In the Overdraft account, Interest will be charged only on the amount

you draw and for the period that you draw. Thus interest will be charged
on a daily basis, but will be debited to your account only once a month.

Do I have to pay any additional fee?

Yes, there is a nominal processing fee, which will be charged to you.

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

It takes four working days for the approval and the credit limit in your
account to be set.

Is a personal guarantor a must?

No, a personal guarantor is not a must.

What security/collateral do I have to provide?

No additional security/collateral needs to be provided, apart from the

securities against which the loan is granted.

How do I repay the loan?

You can repay the loan by cash, cheque or demand draft.

Can I prepay my loan?

Yes, the loan can be prepaid; there are no prepayment charges.

Do I need to open an account with KOTAK BANK for availing

and/or servicing the loan?

Yes, you need to open an KOTAK BANK Overdraft Current A/c in

which the credit limit for you will be set.

What are the stages involved in taking a loan?

The various stages involved are as follows:

  Signing of the loan agreement
 Pledging the securities in our favor.
 Opening the Current account

Once the Current account is opened, you can avail of the credit limit.

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

Yes, you can still avail of a loan based on your profile, credit strengths
etc. Please feel free to contact us and we can advise according to your
case.

Where will my account be opened?

At the designated Branch specified by you, however you can operate out
of any of our branches under the anywhere banking facility

How do I get to know my Credit Limits?

You can call our 24 hour Customer Care Centre to know the status of
your account, what are the Securities pledged, what is the amount
obtained against the different Securities, how much is the shortfall, etc.

Am I required to have a Demat Account with KOTAK BANK ?

No, you can pledge your Securities irrespective with whom you have
your Demat account.

Do you entertain pledge forms via fax?

Yes, on giving a Fax indemnity. You can fax us at 022-56661425.

How do I pledge more Securities? How long does it take?

You can submit your pledge forms with any of our branches across the
city. The limits will be reset within 48 - 72 hours of receipt of the forms.

How often are the shares revalued?

The shares are revalued every Friday or whenever there is a significant

change in the market.  

What about my Dividend and Bonus?

The Dividend and Bonus on your shares shall continue to accrue to you.
I have shares that are in the approved list but they are in the
Physical form, Can I get loan against them?

Yes, but you would have to first convert them into the dematerialized
form. All you have to do is to get your shares dematerialized through a
depository account with KOTAK BANK / any other Bank.  

Will more shares be included in the approved lists?

Yes, these lists are updated on a periodic basis.

I am an NRI can I avail of Loans Against Securities?

For NRI's we have a special product 'Loans against India Millennium

Deposits (IMDs)'. These loans are given by way of an overdraft facility
against the security of the Physical Deposit Receipts of IMDs.

SPECIAL FEATURES OF KOTAK BANK PERSONAL LOAN

Loans for salaried & self-employed individuals.

Loans are available from Rs. 20,000 to Rs. 10 Lakhs.
Repayment tenures from 12 - 60 months.
No Security, Collateral or Guarantors required.
Loans can be used for any purpose with no questions asked regarding
the end use of the loan.
A balance transfer facility available for those who want to retire any
higher debt.
 All loan repayments are done via equated monthly installments
(EMI).

ELIGIBILITY

Criteria Salaried Self - Employed

Age 25 yrs. - 58 yrs. 25 yrs. - 65 yrs.
Net Salary Net annual income - Net Profit after tax - Rs.
Rs. 96,000 p.a 60,000 p.a
Eligibilty Employees of Public Doctors, MBA's,
Ltd. cos. , Private Ltd. Architects, CA's,
cos. MNCs Or Engineers, Traders &
Government. Manufacturers
Years in current job /
1 Year 3 Years
profession
Years in current
1 Year 1 Year
residence

DOCUMENTATION

Self
Documents ( Pre Sanction) Salaried
Employed
Latest 3 months Bank Statement (where
Yes Yes
salary/income is credited)
Latest 2 salary slips Yes  
Last 2 years ITR with computation of income /
  Yes
Certified Financials
Proof of Turnover (Latest Sales / Service tax   Yes
returns)
Proof of Continuity current job (Form 16 /
Yes  
Company appointment letter )
Proof of Continuity current profession (IT Returns /
Certificate of business continuity issued by the   Yes
bank)
Proof of Identity (any one)Passport / Driving
Licence / Voters ID / PAN card / Photo Credit Card Yes Yes
/ Employee ID card
Proof of Residence (any one) Ration Card / Utility
Yes Yes
bill / LIC Policy Receipt
Proof of Office (any one) Lease deed / Utility bill /
  Yes
Municipal Tax receipt / title deed
Proof of Qualification Highest Degree (for
Yes Yes
Professionals / Govt employees

 
 CONCLUSION:

From the above given data, it becomes clear that the concept of retail

banking is very vast and it is also clear that both the banks i.e; KOTAK

BANK & PNB are best in their own spheres and hence, have no

competition from others. The only thing which these banks can do to

enhance their capability is to increase their area of coverage and try to

explore new products for emerging new markets.

 RECOMMENDATION:-

KOTAK BANK

OBSERVATION CONCLUSION RECOMMENDATION

Product offers Does not provide Should provide
education loan education loan
Quota setting No set type of quota Use particular type of
quota
Planning style for Top down Apply feed back from
budget bottom also
Communication with On line It can also be
D.S.A. interpersonal contact for
the knowledge in depth

PUNJAB NATIONAL BANK:

OBSERVATION CONCLUSION RECOMMENDATION

Quota setting Budget and activity Sales volume quota
quota
Territory allocation Geographically See market and product
also
Sources of sales Within the break Take outside also for
force recruit new ideas and concept
Services provided by NO D.S.A. Should appoint D.S.A. to
D.S.A. offer products for better
market coverage

ANNEXTURE:-
QUESTIONNAIRE:-
 NAME----------------------------------------
ADDRESS----------------------------------
AGE---------------------PH. NO.----------------------
MAIL ID----------------------------------------------

(1)Which Bank are you banking with?

a) KOTAK BANK
b) PNB
c) HDFC
d) OTHERS
(2)Are you satisfied with your Bank?
a) Yes
b) No
c) Can’t say

(3)What is your occupation?

a) Govt. employee
b) Private sector employee
c) Businessman
d) Others

(4)What kind of account do you have?

a) Saving
b) Current
c) Fixed

(5) Is external person’s interference through bank to get recovery of

loan is correct or not?
(a) Yes
(b) No
(c) Cant say

(6 )Have you taken loan from KOTAK BANK or OTHERS BANKS?

(a) KOTAK BANK
(b) OTHERS BANKS

(7)Do you think government bank’s have more formalities in

comparison to private banks?
(a) Yes
(b) No

(8)Why you chose KOTAK BANK or OTHERS BANKS?

ING VYSYA OTHERS

 SERVICES BANK, BANKS
LUCKNOW
TIMING 60 40
FAST 75 25
SERVICE
60 40
FACILITY
54 46
PERSONAL
ATTENTIO
N
ATM 35 65

(9) Which bank you prefer to loan KOTAK BANK or OTHERS

BANKS?
PRODUCT KOTAK OTHERS BANKS
BANK
CAR LOAN 60 40
COMMERCIA 46 54
L LOAN
HOME LOAN 50 50
LOAN 70 30
AGAINST
SECURITY
PERSONAL 55 45
LOAN
LOAN 35 66
AGGAINST
MORTAGE
EDUCATION 0 100
(10) Which bank will you prefer to further transaction in future?
(a) KOTAK BANK
(b) PNB
 BIBLIOGRAPHY

 KOTAK BANK BRANCH OFFICE)

WEBSITES:

 www.ingvysyabank.com

 News papers

 Magazines: Business India, Business today etc.