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Kotak Business Loan EMI Calculator India Sep 2020

Business Loan EMI Calculator Kotak Bank

Last Updated 20th Aug 2020

Get monthly EMI as low as Rs. 2,432 per lakh on Kotak Bank business loan. Business loan EMI in Kotak Bank depends upon loan annual turnover, gross receipts, number of years of ITR, loan amount, loan tenure and interest rate.

Loan Amount1 Year Loan2 Year loan5 Year loan
₹ 1 Lakh₹ 9,073₹ 4,896₹ 2,432
₹ 5 Lakh₹ 45,365₹ 24,482₹ 12,159
₹ 10 Lakh₹ 90,731₹ 48,963₹ 24,318
Business Loan EMI Calculator
Lowest Interest Rate
Best Offers on Business Loan offerOffers
Bank/NBFCs Rate* EMI per Lakh* Action
HDFC Bank15.65%₹ 2,816Check Eligibility
Bajaj Finserv18.00%₹ 2,937Check Eligibility
ICICI Bank16.49%₹ 3,540Check Eligibility

* Starting From

Business Loan Calculator Kotak Bank

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Kotak Bank against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • Kotak Bank offers business loans with loan tenure up to 60 months that translates into a lowest loan EMI of ₹ 2,432 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by Kotak Bank on business loan is 16.00%.

Use EMI Calculator to Calculate your EMI on Business Loan at Different Tenure

Business loan EMI for ₹ 10 Lakh loan amount at lowest 16.00% interest rate offered by Kotak Bank for different tenures

1 year 2 year 5 year
Kotak Bank EMI for loan amount of ₹ 10 Lakh at 16.00% ₹ 90,731 ₹ 48,963 ₹ 24,318
Total amount you pay back to the bank including principal and interest ₹ 11,69,859 ₹ 13,68,569 ₹ 21,91,123
Interest you have to pay over loan tenure ₹ 1,69,859 ₹ 3,68,569 ₹ 11,91,123
  • The above table shows the longer your loan tenure, lower is the EMI you pay on the loan. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take ₹ 10 Lakh loan for a period of 5 years, you pay the lowest EMI of ₹ 24,318. However, you pay an interest of ₹ 11,91,123 on a ₹ 10 Lakh loan.
  • In contrast, if you take a ₹ 10 Lakh loan from Kotak Bank at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 90,731 and pay an interest of only ₹ 1,69,859 which is less than half of what you paid in a 5 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting Kotak Bank Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. Kotak Bank gives minimum business loan of ₹ 3,00,000 up to an amount of ₹ 75,00,000.
  • Interest rate - Interest rate is the rate charged over the principal amount borrowed. Higher interest rate increases your loan EMI which will increase the total cost of the loan. Lowest interest rate offered by Kotak Bank is 16.00%. Do complete market research and compare rates online before you apply for a business loan.
  • Loan tenure - This is the period in which you can repay your business loan to the bank. Longer loan tenure means lower loan EMI. Generally, Kotak Bank offers business loan for a maximum tenure of 60 months.

Business Loan Amortization Calculator

An amortization schedule is a table of periodic loan payments that shows the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.

In the Amortization schedule, your Business Loan monthly EMI will be equal, but the component of EMI, which consists of interest payment and principal payment will not remain the same every month, it keeps on changing.

Illustration: How to read an amortization schedule

Suppose if you take a Business Loan of ₹ 5 Lakh for 2 years at an interest rate of 13.50%. EMI calculated for this loan amount is ₹ 23,889 and the total annual EMIs to be paid annually is ₹ 2,86,662. The EMI schedule of loan for 2 years is explained below in the table –

Amortization Schedule for a Business Loan of ₹ 5 Lakh over the 2 years

Year Interest paid during the year Principal repaid during the year Total amount paid during the year (Interest + Principal) Outstanding Principal
2020 ₹ 21,258 ₹ 74,296 ₹ 95,554 ₹ 4,25,704
2021 ₹ 42,743 ₹ 2,43,919 ₹ 2,86,662 ₹ 1,81,785
2022 ₹ 9,323 ₹ 1,81,785 ₹ 1,91,108 -₹ 0

Each Business Loan EMI consists of both amounts of interest as well as the principal repaid. The interest component of EMI goes down while the principal component goes up in both cases while doing the calculation.

In the above illustration, on a Business Loan of ₹ 5 Lakh, taken at the lowest interest rate of 13.50%, EMI paid is ₹ 23,889 and an annual total of EMIs is ₹ 2,86,662, the interest component is ₹ 53,418 while the principal component is ₹ 2,33,244 in year 1 of loan disbursement. You repay only 46.65% of the total principal after paying 12 EMIs during the first year.

In year 2, the interest component of EMI is around 6.94%, while the principal component is around 93.06%. Upto 2 years, you have cumulatively repaid 100% of your total Business Loan.

Kotak Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how Kotak business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 3,00,000 to ₹ 75,00,000
r = Rate of interest per month. Current rate is 16.00%
n = tenure in month. For Kotak, this can be 60 months

Tips to decide the right amount of Kotak Bank Business Loan EMI

  • Ascertain the amount you need to borrow: It is important that before approaching Kotak Bank for business loan, you need to estimate the amount of loan you need to borrow. Remember business loan is an unsecured short term loan, and hence it is advisable to minimize your loan amount to the extent possible. Also, based on the EMI you can service, try to opt for lowest tenure of loans as long tenure loans result in huge interest outgo.
  • Review your current obligations: Before taking loan from Kotak Bank, it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.

FAQs

What is the calculation of Kotak Bank Business Loan EMI?

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Kotak Bank against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.

  • Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Kotak Bank against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • With Kotak Bank offering business loan with loan tenure up to 60 months, the loan EMI can be as low as ₹ 2,432 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by Kotak Bank are as low as 16.00%. You can check EMI for other tenures using our Kotak Bank business loan calculator.
  • This EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, the principal component keeps increasing and on the other hand the interest component keeps reducing.

How does MyLoanCare business loan calculator calculate EMI?

This calculator calculates EMI considering a combination of loan amount, interest rate and loan tenure.

  • This calculator considers “reducing balance basis” and assumes that payment of EMI is made in arrears (means interest is charged for the month preceding the EMI payment date) and not in advance.

Will the Kotak Bank business loan EMI remain constant or change in future? What happens in case of increase or decrease in interest rate?

Typically, the business loan EMI remains unchanged unless the customer requests for a change and the same is approved by Kotak Bank subject to its eligibility conditions (note that nominal charges may apply for effecting a customer initiated change in EMI).

  • In case the floating rate of interest on your business loan increases, Kotak Bank will typically keep the EMI constant but increase the loan tenure. So, you will pay the same EMI but for a longer duration. In case the interest rates increase to an extent that the revised loan tenure is more than the maximum permissible by Kotak Bank, the bank may increase your EMI amount.
  • For partly disbursed loans availed under tranche EMI scheme, your loan EMI will increase with each disbursement.

Will business loan EMI change in case of prepayment?

Kotak Bank allows prepayment at nil charges or penalty in case of floating rate business loans.

  • When you make a prepayment, the outstanding principal amount on your loan reduces. In this case, you may choose to either keep the EMI same and reduce the loan tenure (that is paying off the loan faster) or reduce the EMI and keep the loan tenure same (that is paying lesser amount every month). It is beneficial to keep the EMI constant and reduce the loan tenure as you pay less interest to the bank in this option.

Why should I calculate Kotak Bank loan EMI before taking a loan?

In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable.

  • If you already know the EMI you have to pay each month, then you can plan your expenses accordingly.
  • Based on the EMI amount, you can opt for making prepayment of your business loan in future when you have surplus amount.

Compare Business Loan EMI of All Banks

Kotak Bank Business Loan Customer Care Number, Email, Application Status, Branches
City Customer Care Number
Agra 011-66006022
Ahmedabad 079-66006022
Ambala 080-66006022
Anand 079-66006022
Aurangabad Bihar 022-66006022
Bangalore 080-66006022
Bhilai 1800-102-6022
Bhilwara 1800-102-6022
Bhiwadi 022-66006022
Bhopal 011-66006022
Bhubaneswar Cuttack 1800-102-6022
Bikaner 1800-102-6022
Chandigarh 0161-65006022
Chennai 044-66006022
Cochin 0422 66006022
Coimbatore 0422-66006022
Dehradun 1800-102-6022
Delhi 011-66006022
Durg 1800-102-6022
Faridabad 080-66006022
Gandhinagar 079-66006022
Ghaziabad 011-66006022
Goa 022-66006022
Greater Noida 011-66006022
Gurgaon 011-66006022
Guwahati 1800-102-6022
Gwalior 011-66006022
Hyderabad 040-66006022
Indore 011-66006022
Jabalpur 011-66006022
Jaipur 0141-6536022
Jalandhar 0161-65006022
Jodhpur 1800-102-6022
Kanpur 011-66006022
Karnal 080-66006022
Kolhapur 022-66006022
Kolkata 033-65506022
Kota 1800-102-6022
Kozhikode 1800-102-6022
Lucknow 011-66006022
Ludhiana 0161-65006022
Madurai 044-66006022
Meerut 011-66006022
Mehsana 079-66006022
Mohali Sas Nagar 0161-65006022
Mumbai 022-66006022
Mussoorie 1800-102-6022
Nagpur 022-66006022
Nashik 022-66006022
Noida 011-66006022
Noida Extn 011-66006022
Panipat 080-66006022
Patna 033-65506022
Pondicherry 1800-102-6022
Pune 020-65216022
Raipur 1800-102-6022
Rajkot 0281-66006022
Ranchi 1800-102-6022
Rohtak 080-66006022
Roorkee 1800-102-6022
Salem 044-66006022
Shimla 1800-102-6022
Sonipat 080-66006022
Surat 0261-6600602
Trichy 044-66006022
Udaipur 1800-102-6022
Vadodara 0265-6646022
Varanasi 011-66006022
Vijaywada 040-66006022
Vizag 040-66006022

Kotak Business Loan News - Sep 2020
  • 2020-07-27 : Kotak Mahindra Bank Q1 net dips 8.5% to Rs. 1,244 cr
    Kotak Mahindra Bank reported a fall of 8.5% in its standalone net profit at Rs.1,244 crores for the quarter ending 30 June 2020. It was Rs. 1,360 crores in the year-ago period. The net interest income backed by retail loans home, personal, gold, car loans and two-wheeler loans along with business and mudra loans increased by 17.81% to Rs. 3,723.85 crore.
  • 2020-05-13 : Kotak Mahindra Bank Q4 net profit of 1,266.66 crores
    Kotak Mahindra Bank reported a 10% decline in its standalone net profit to ₹1,266.6 crores in the fourth quarter of the fiscal year 2019-20, on the back of higher provisions. Bank profit in 2019-20 surged 22.2% to ₹5,947.18 crores bolstered by a hike in retail loans like home and personal loans along with business loans, car and vehicle loans.
  • 2019-09-27 : Kotak Mahindra Bank likely to participate in the loan mela
    The Government recently announced the loan mela by public sector banks to provide liquidity in the slowing economy. However, as per the latest updates, private sector banks like Kotak Mahindra too will participate in the event. The bank expects to strengthen its lending portfolio by providing easy retail loans to potential borrowers.
  • 2019-05-01 : Kotak Mahindra Bank Q4 net jumps 25% on strong loan growth
    Private sector lender, Kotak Mahindra Bank has reported a 25% growth in net profit for the quarter ended March 31, boosted by strong growth across its retail loans segment including home loans and business loans. In addition, the lender has reported a 25% jump in net profit to Rs. 1,408 crore in the March quarter, as compared to Rs. 1,124 crore in the same quarter of the previous year. Overall, its loans grew to 21% as of end-March.
  • 2019-04-11 : Kotak Mahindra Bank to focus on SMEs to expand
    Private sector lender, Kotak Bank is planning to expand its corporate loan book. From now onwards, the bank will focus on working capital disbursements and growth financing. The lender aims to expand SME Loans by 15% to 20% during this financial year.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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