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Dealer Finance

Kotak Mahindra Prime Limited has vast experience in providing comprehensive solution to the wholesale funding requirement of automobile dealers across various manufacturers. KMPL offers superlative experience to automobile dealers by catering to their entire spectrum of financial requirement through 'single window' and tailor made products to suit the dealership business requirement. This results in better response time and funding solutions to our esteemed customers.

The various financial options available are:
  • Inventory Funding
  • Project financing - Term Loan for setting up, renovation, expansion of dealership.
  • Other Term loans against property for business expansion, working capital term loans.
  • Setting up of CC/BG/OD/LC limits through Kotak Mahindra Bank Limited
KMPL also offers value added services such as:
  • Dealer financial structuring and tailor made solutions.
  • Specific advisory services to dealers.
Inventory Funding Options

Inventory funding is available to automobile dealers to finance the working capital requirement for stocking and sale of vehicles.

  • Retail Linked Trade Advance: Dealer inventory funding facility is linked to retail business sourced through dealership counter. It is unsecured / semi-secured advance. Generally the exposure is capped at Rs.1 crore, based on the dealer's working capital requirement and credit assessment. Tranche based due date product.
  • Wholesale Finance facility under multiple banking: is a semi-secured advance available to automobile dealers based on their overall requirement and other credit facilities availed. The maximum exposure is based on the dealer's working capital requirement and credit assessment. Tranche based due date product.
  • Floor Finance / Single Payment Gateway Plan: Caters to the entire working capital requirements of the dealer as a sole financier. It is a unique product proposition with a longer tenure product for inventory funding with operational ease like a cash credit facility offered by banks . The credit exposure is based on the dealer's working capital requirement and credit assessment.
    Under this product KMPL is the exclusive financier for inventory funding needs of the dealership.
Term Loan Options
  • Term Loan is available to automobile dealers for setting up of new dealerships, expansion / renovation of showroom / workshop / supplementing working capital requirement.
  • Equipment Term Loan is available to automobile dealers for purchase of equipment for their service center.
  • Other term loans such as Working Capital term loan, and Term loan against property for business expansion

Eligibility

Eligibility Criteria: Manufacturer Authorised Passenger Car dealership

Document

Documents required for funding evaluation:
  • Application Form
  • Brief background of promoters and details on existing business entities
  • Last 3 years audited financial statements of dealership and group companies.
  • Provisional Financials as may be required.
  • Financial Projections for next 5 years as may be required.
  • Project Report , details ( in case of term loans)
  • C.A. certified Net worth statement and ITRs of promoters
  • Dealership infrastructure details
  • Current limits with banks / financiers with a copy of the sanction letter
  • Sales numbers (past 12-24 months model wise), copy of VAT returns etc.
  • KYC (Know Your customer) documents
  • Memorandum and Articles of association / Partnership deed
  • Any other information, declarations as may be required.

Please note that the above is an indicative list and not exhaustive.

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FAQ's Expand All

Do I have the option of pre-paying the entire loan?

One can pre-pay the loan any time after 6 months of availing of the loan at a prepayment charge of 5.21% plus taxes of principle outstanding

Which automobile dealers can avail of the dealer finance options?

Only passenger cars and MUV dealers can avail of KMPL's dealer finance options.

How much finance can I avail of?

Inventory funding - Finance amount eligibility depends on Current sales, Sales projection, Stocking level, Working Capital Cycle Term Loan - Finance amount eligibility depends on Project cost, Promoter's equity contribution, Present / Projected cash flows

For what purpose, can I avail Term loan?

Term loan can be availed for any of the following activities related to automobile retailing business -Acquisition of land / building for show room /work shop or 3S facility - expansion of existing facility - Renovation - Equipment

What are the tenure options?

Inventory funding - 30 days to 90 days Term loan - 1 year to 7 years

How long will it take to process the loan?

The term loan facility can be set up within 7 days of submission of the documents as required by KMPL to evaluate the proposal.

Who can avail of KMPL Dealer Finance options?

Any automobile dealer of established car manufacturer having office / operating in India. KMPL offers Inventory funding and Term loan facilities.

Margin Money Scheme
  • We provide finance for acquisition of new car up to 90% of the invoice value for certain models.
  • The customer should pay the margin money (invoice value minus the finance amount) to the dealer directly. He also has an option to pay the margin money to KMPL upon which we would release the entire invoice value to the Dealer.
  • The financed amount can be repaid as per your convenience (12 - 60 months EMIs).
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Step Up Scheme
  • Increase in EMI after every year, six months or quarter (depending upon your needs).
  • Best suited for people who want the luxury car experience.
  • Make payments in line with your growing income (starting with low EMIs in the early period of repayment).
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Low EMI, Balloon Scheme
  • 10%-25% of the cost of the car to be paid as last EMI.
  • Reduced EMI for the entire tenure.
  • Best for customers who want to dispose of their vehicle at the end of the tenure and are looking at affordable EMIs during the tenure.
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