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Loans

At Kamal Autofinance Ltd., we offer a large bouquet of loans to choose from. The hallmark of our loans remains a simple and hassle free application process and our ability to understand and accommodate your needs. The core loan products are as follows

Two wheeler loans

Our three wheeler lending philosophy has always been to keep things simple and steady. Accordingly, we have a simple three wheeler loan product which focuses on keeping smaller monthly installments so that repayments are easy for the customer. We actively lend against both new and old three wheelers.

Personal loan / cash loan

We have an extensive portfolio of two-wheeler loans and have a variety of attractive products that offer a combination of low rates and easy terms of finance. Our basket of two wheeler loan products has a diverse range of loans that allow you to strike an ideal balance between the rate of interest, the amount of finance and the term of the loan. Currently, we are actively extending credit facilities for the purchase of Bajaj, Honda, Hero Honda, Suzuki and Yamaha motorcycles and scooters. Recently, we have also launched finance products for electric scooters.

Four wheeler loans – new and old vehicles

We actively finance the purchase of new four vehicles, whether for personal or commercial use and also extend re-finance against used / second hand vehicles. Once again, we are willing to design customized loan products for the customer, as we believe that the customer would be willing and able to repay on time only if the repayment terms suit his individual needs.

Working Capital Business loan

We extend working capital support to small businesses in urban centers (Jaipur, Jodhpur and Kota), which have been running for at least three consecutive years. The loan is totally non-asset backed and we do not require the customer to pledge his property or anything of the sort. The rate of interest is very competitive and calculated to allow the business concerned to use the money profitably.

Personal loan / cash loan

The personal loan is a totally clean unsecured loan given for any and every of your needs, without restrictions. Easy requirements of documentation and quick sanction and disbursal ensure that the personal loan remains one of our most popular products.

Loans against property

Loans are also available against mortgage of property. Once again, the loan may be customized as per the needs of the individual customer.

Educational loans

We provide credit facilities for pursuing studies in India. The loan requires proof of admission and the payment is made in the name of the educational institution concerned. A reasonable moratorium to allow the student to complete the education may be built into the loan.

Parameters for gradation of risk of a particular loan

(1) Whether the loan is asset backed or non-asset backed?
(2) What is the ratio of the loan amount to the value of the underlying asset, if any?
(3) What is the quality of the underlying asset in terms of its market value, etc.?
(4) What is the income level of the applicant?
(5) Whether the applicant has a regular, predictable and reliable source of income?
(6) What is the existing debt burden on the applicant?
(7) What is the disposable income of the applicant? What is the applicant's EMI repaying capacity?
(8) What is the age and marital status of the applicant?
(9) How many dependants are there on the applicant?
(10) Whether the applicant has a fixed place of residence?
(11) What is the prior track record of the applicant for loan repayments?
(12) Whether the applicant has defaulted and/or delayed on any payment obligations in the past? What is the CIBIL track record/score of the applicant?
(13) Whether the applicant has access to regular channels of banking? Whether the applicant faces difficulties in servicing the loan due to lack of access to regular channels of banking?
(14) What is the access of the company to the applicant? Whether the cost of managing the loan is higher for the company owing to inaccessibility of the applicant?
(15) Whether the applicant has a reliable guarantor?
(16) Any other factor that might affect the stability of the applicant or his/her loan repayment capacity.

Interest rate model

Host of factors contribute to the determination of the rate of interest to be charged by the company. In particular, the following factors are important:-
(1) The cost of funds of the company.
(2) The fixed expenses of the company.
(3) The risk premium / provisioning required.
(4) The profit margin required.
(5) Any other factor required to be included.

Further, rates of interest charged on individual loans might vary depending upon the following factors:-

(1) The credit worthiness of the borrower as assessed by the company.
(2) The quality of the underlying asset against which the loan is secured. For example, loans against new vehicles would be typically priced cheaper than loans against used vehicles.
(3) The amount of loan sought to be taken against the value of the underlying security. For example, a loan of only 50% of the asset value might be priced cheaper than a loan of 80% of the asset value.
(4) Any other factors which influence the risk for the company.

Current Interest rates

The interest rates vary from product to product and normally the minimum rates of interest being charged by the company are as follows:-

(1) Two Wheelers – 24%
(2) Used Auto Loans (private + commercial) – 19%
(3) New Auto Loans (private + commercial) – 15%
(4) Personal Loans – 26%
(5) Others – 15%

NOTE: -
(i) The above rates are subject to change from time to time as per the costing of the company
(ii) In certain exceptional cases, interest rates may be offered below the levels stated above


Loans Available
Vehicle
Loan
Educational
Loan
Personal
Cash
Loan
Business
Loan
Equipment
Loan
Loan Against
Property