I would like to put this not as a normal review but as the communication log after initial summary of experience. Will keep updating in a way that at the end information is available.
**Kotak Mahindra Car Finance:
Interest rate: **14% PM(FIXED)
Pre-Payment charges 5.75% of remaining balance**
Loan Purchase: June, 2011. With the help of:Dealer, Cargo Ford, Ahmadabad. They were jointly closing this by asking to prefer this as they are new and faster than existing banks and difference was only .5% at that point of time. There was a conspiracy and some of the cargo ford managers might be making some money out of huge commissions to help them hunt.
Time taken: 3 to 4 days for loan process however got verbal confirmation very soon. Rest of the time was for paper formalities.
Service level: Good for first level of formalities as they were hunting me. Hiding gray area was an approach. Overselling and false commitment of future service.
**1. Experience encountered:**
Problem: Change of ECS bank.
Service level: No one comes to you, we need to go to bank. Rigid on acceptance of a new account. They insisted me to bring last 6 months statement from my then salary account ICICI. I mentioned that I am under notice period and new company has a different Bank. They convinced me to open it with ICICI instead of SBI(my choice) stable account which I maintained for years for my home exp. That was a blunder on my side to save some time and not argue with them. If I dont accept, they wont change ECS and keep charging me interest. Clear BLACK MAILING. No support for getting statement or ecs done with my bank. Couple of visit to ICICI to get the things done. I dont know for what service, they charged me 1500(yes FIFTEEN HUNDRED) for this.
Below is the communication log I started here and will keep posting replies.
**2. ECS bounce and penalty**
Due to above bank ecs, I need to take care of maintaining balance of ICICI. The same day, their ECS hit an hour before approval of my earlier day transaction. They called me for cheque and 550 as bounce charge. Executive came and he was asking 855 extra. He was in this business and doesn’t know how this 855 came. I gave him cash and took receipt
But now, I seriously want to close this, no matter what happens and starting this thread. will keep it posted here or in comments section about the updates.
Mail date:15-04-2013
To: service.carfinance@kotak.com
Dear sir,
With rRajeev_Vermact to this loan, following is the query.
I am planning an upgrade of a vehicle and hence may plan to sell this car Ford Figo to replace it with newer SUV Eco sports. This Loan conditions demand 5.75% prepayment charges. Would like to know that due to any amendments in RBI guidelines or your internal board resolution to serve your customer better, are these charges waived or reduced to a reasonable fair affordable rates so that with a single transaction, customer just dont start to hate your bank?
Also keen to know that one of your credit card selling agent asked me that my loan is actually at 12.5% rate instead of 14% which I was told initially. This kind of reductions are unheard from a private bank like you who doesn’t leave a single opportunity to charge your customer. Can it be pleasantly true or as the your car selling agent oversold me the car loan, your credit card selling agent was also following the best practices laid by you?
Regards,
Varix Patel