SUMMER TRAINING PROJECT EPORT

ON
“RETAIL BANKING AT KOTAK MAHENDRA
BANK ”

Under the guidance of

Mr. Anajli Mishra
(Operational Analyst)

INSTITUTE OF CO-OPERATIVE & CORPORATE MANAGEMENT,

RESEARCH AND TRAINING

Submitted in partial fulfillment for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

from Dr. A PJ Abdul Kalam Technical University, Lucknow

BY
Reetika Sahani
(2101240700086)

INSTITUTE OF CO-OPERATIVE & CORPORATE MANAGEMENT,

RESEARCH AND TRAINING

21/467, RING ROAD, INDIRA NAGAR, LUCKNOW-226016

 Phone: 2716431, 2716092
Fax: (0522) 2716092
E-mail:
[email protected]
Website:
www.iccmrt.ac.in

Institute of Co-operative & Corporate Management,

Research and Training
467, Sector-21, Ring Road, Indira Nagar, Lucknow-226016

CERTIFICATE
This is to certify that Reetika Sahani a student of Master of Business Administration
(MBA) Program (Batch 2021-23) at this Institute has undergone a Summer Training
in the Institute of Co-operative & Corporate Management, Research and
Training and carried out a study titled “SUMMER TRAINING REPORT ON
RETAIL BANKING AT KOTAK MAHENDRA BANK ”.
He has prepared a report on the study carried out by him in the
organization. The student has also made a presentation before a panel of
experts at the Institute.
(Mrs. Bhoomika Trehan)

Assistant Professor

Certified

(Dr. K. Anbumani)

Principal, ICCMRT
CERTIFICATE BY ORGANISATION
 DECLARATION

I hereby declare that the project work entitled “RETAIL BANKING AT KOTAK

MAHENDRA BANK ” Submitted to the INSTITUTE OF CO-OPERATIVE &

CORPORATE MANAGEMENT, RESEARCH AND TRAINING is a record of

an original work done by me under the guidance of Institute of Co-operative &

Corporate Management, Research and Training and Kirti Verma, Assistant

Professor and this project work has not performed the basis for the award of any

degree or diploma and similar project if any.

Reetika Sahani
(2101240700086)
 ACKNOWLEDGEMENT

I acknowledge the sincere assistance provided to me from several rather

unexpected quarters during the course of execution of this study. It would be a

mammoth task to place on record my gratitude to each and every one of them but a

whole hearted attempt would be made nevertheless, least I be branded ungrateful.

I would like to thanks Mr. Mrs. Bhoomika Trehan (Assistant Professor) for support

and guidance to complete this project.

Reetika Sahani
MBA 3rd Sem.
Roll No. 2101240700086

1
 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 AT KOTAK MAHENDRA BANK 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

2
 TABLE OF CONTENT

SR. TOPIC .
NO.
1. INTRODUCTION

2. COMPANY BACKGROUND

3. HISTORY OF ING

4. PERFORMANCE MANAGEMENT

5. ORGANISATION CHART- ING VYSYA

BANK DEPARTMENTS
6. RESERVE BANK OF INDIA’S
RECCOMANDATION
7. RESEARCH METHODOLOGY

8. ANALYSIS AND FINDING

9. CONCLUSION

10. RECOMMENDATION

11. ANNEXTURE

12. BIBLIOGRAPHY

3
 INTRODUCTION

INDUSTRY:-
RETAIL BANKING AT KOTAK MAHENDRA BANK SYSTEM:-

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 at KOTAK MAHENDRA
BANK 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 at KOTAK MAHENDRA

BANK 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 at KOTAK MAHENDRA BANK (sales) is in a booming

scenario at the moment. to understand

4
the reasons for this booming we have to negotiate the following reasons.

Changing government policies

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

5
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.

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)

6
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

-For bank can take over the property of customer

7
RETAIL BANKING AT KOTAK MAHENDRA BANK A GAINING
PROCESS FOR ALL

RETAIL BANKING at KOTAK MAHENDRA BANK 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 -For
middleman it is a sales boosting factor or device And For players of RETAIL
BANKING at KOTAK MAHENDRA BANK 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.

8
 COMPANY PROFILE

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

9
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.
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.

10
3-Best private bank in india by finance asia country award 2015 for the 7 th 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.

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.

11
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.

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 at KOTAK MAHENDRA BANK

Holds RETAIL BANKING at KOTAK MAHENDRA BANK activities in the

Netherlands, Belgium, Poland, Romania and India. RETAIL BANKING at
KOTAK MAHENDRA BANK 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 at KOTAK MAHENDRA BANK

12
 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

 Personnel Loan

 HR

 ITPL
 Corporate Services Department
 Corporate Sales
 Locker
 Credit cards

13
RESERVE BANK OF INDIA’S ON RETAIL BANKING AT KOTAK
MAHENDRA BANK :-

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 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.

14
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

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

15
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 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.

16
 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.

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.

17
 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 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 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

18
 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 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

19
 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 AT KOTAK MAHENDRA BANK SALES

OVER THE YEARS:-

(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

20
 RESEARCH METHODOLOGY:-

The research is carried on qualitative and quantitative platform. In qualitative

platform, personal interviews are conducted with managers of 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 the form of

21
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.

22
 ANALYSIS AND FINDING

(1) Which bank you are banking with?

i. KOTAK BANK (b)PNB (c) HDFC (d) OTHERS

20%

35%
ING
HDFC
PNB

25% OTHER

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%

23
(3) What is your occupation?
(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

24
(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%

25
6 Have you taken loan from KOTAK BANK OR OTHERS BANKS?
(a) KOTAK BANK (b) OTHERS BANK

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

26
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%

27
(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
KOTAK PNB
OTHERS
BANKWHY YOU CHOOSE ICICI OR PNB

28
(9) Which bank you prefer to loan KOTAK BANK or PNB?

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

29
10 Which bank will you prefer to further transaction in future?

(a) KOTAK BANK (b) PNB

WHICH BANK YOU PREFER TO FURTHER TRANSACTION

40%
PNB
ICICI
60%

30
 Analysis of Hypothesis:-
Chi Square Test
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.

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

Commercial 28 24 4 16 0.67
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

31
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

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.

32
 TYPE OF SALES (ORG STRUCTURE):-

KOTAK BANK
REGIONAL SALES MANAGER
PRODUCT MANAGER

BRANCH MANAGER

BRUNCH SALES
MANAGER

CUSTOMER
OPPARATION
ACQUISITIONS TRAINEES
SUPPORT
TEAMTEAM

DATA COLLEECTION
AND INFORMATION
DISSEMINATION

33
 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.

34
 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

35
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.

36
 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

37
 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 Private / Public

Partnership Firm
Individual Individual Ltd Co

Application form
Application form Application form
Application 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 continuity income (ITR for income proof audited financials
the last two years ) (audited account or

38
 ITRs + CA
certified financials)

One income proof One proof of Partnership deed Certified true copy
for the last two residence (driving of the MOA &
years (ITR, Form license / voters' AOA
16, salary slip) identity card /
ration card /
passport / utility
bills for the last 3
months)

One proof of One proof of Partners authority Board resolution

identity (driving residence (driving letter (format available
license / voters' license / voters' on request)
identity card / identity card /
passport / PAN ration card /
card / photo credit passport / utility
card / photo ration bills for the last 3
card) months)

One proof of One proof of office

residence address (utility bill
(laminated driving / lease deed / excise
license / voters' or sales tax receipt
identity card / / Shops and
photo ration card / Establishment Act
passport /utility Registration)

39
bills for the last 3
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

40
 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

41
 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.

42
 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.

43
 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.

44
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?

45
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

46
  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.

47
 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.

48
 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.

49
  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.

50
 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.

51
 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?

ns - Maximum loan tenure of 15 years.

- Maximum loan tenure of 15 years.
- Maximum loan tenure of 30 years.

How is the loan repaid?

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

52
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 1st 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 7th 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

53
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.

54
 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:

55
 -dated cheques

Some documents are specific to each state. For further information, please contact
the nearest office.

56
 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

57
 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.

58
 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

59
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

60
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.

61
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 available
deduction
Upto Rs.1,50,000 20%
More than Rs.1,50,000 but not
15%
exceeding Rs. 5 lakh
More than Rs.5 lakh None

62
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.

63
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.

64
  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.

65
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.

66
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.

67
  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.

68
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?

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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.

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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.

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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.

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

DOCUMENTATION

Self
Documents ( Pre Sanction) Salaried
Employed
Latest 3 months Bank Statement (where salary/income is
Yes Yes
credited)

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

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 CONCLUSION:

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

BANKING at KOTAK MAHENDRA BANK 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.

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 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 force Within the break Take outside also for
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

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 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

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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

(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?
SERVICES ING VYSYA OTHERS
BANK, BANKS
LUCKNOW
TIMING 60 40
FAST 75 25
SERVICE
FACILITY 60 40
54 46
PERSONAL
ATTENTION
ATM 35 65

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

PRODUCT KOTAK OTHERS BANKS

BANK
CAR LOAN 60 40

COMMERCIAL 46 54
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

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 BIBLIOGRAPHY

 KOTAK BANK BRANCH OFFICE)

WEBSITES:

 www.ingvysyabank.com

 News papers

 Magazines: Business India, Business today etc.

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