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Kotak Business Loan EMI Calculator India Jul 2021

Business Loan EMI Calculator Kotak Bank

Last Updated 09th Jul 2021

Get monthly EMI as low as ₹ 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
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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 48 months.

Kotak Bank Business Loan Amortization Calculator

Kotak Bank Business Loan amortization schedule gives a break up of your monthly EMI into interest and principal repayment. Kotak Bank gives you a detailed amortisation schedule with the sanction letter and you can calculate the total interest outgo as well as the pace at which your loan amount will be repaid during the loan tenure.

How to read an amortization schedule

Suppose if you take a Business Loan of ₹ 7 Lakh for 3 years from Kotak Bank at an interest rate of 16.00%. EMI calculated for this loan amount is ₹ 24,610 and the total annual EMIs to be paid annually is ₹ 2,95,319. The EMI schedule of loan for 3 years is explained below in the table –

Amortization Schedule for a Business Loan of ₹ 7 Lakh over the 3 years

Year Interest paid during the year Principal repaid during the year Total amount paid during the year (Interest + Principal) Outstanding Principal
2021 ₹ 52,890 ₹ 94,770 ₹ 1,47,660 ₹ 6,05,230
2022 ₹ 81,615 ₹ 2,13,704 ₹ 2,95,319 ₹ 3,91,526
2023 ₹ 44,800 ₹ 2,50,519 ₹ 2,95,319 ₹ 1,41,007
2024 ₹ 6,653 ₹ 1,41,007 ₹ 1,47,660 ₹ 0

In the above illustration, on a Kotak Bank Business Loan of₹ 7 Lakh, taken at the lowest interest rate of 16.00, EMI paid is ₹ 24,610 and an annual total of EMIs is ₹ 2,95,319, the interest component is ₹ 97,941 while the principal component is ₹ 1,97,378 in year 1 of loan disbursement. You repay only 28.2% of the total principal after paying 12 EMIs during the first year.

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 48 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 Toll Free Number
City Customer Care Number
Agra 011-66006022
Ahmedabad 079-66006022
Ambala 080-66006022
Anand 079-66006022
Aurangabad Bihar 022-66006022

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Kotak Business Loan News - Jul 2021
  • 2021-07-09 : Kotak Bank Q1 Net Profit seen up 25.6% YoY to Rs. 1,563.4 crores
    Motilal Oswal has come out with its first-quarter earnings estimates for the Banks and Insurance sector. The brokerage house expects Kotak Bank to report a net profit of Rs. 1,563.4 crore up 25.6% year-on-year on all products combined including Personal Loan, Home Loan, Loan Against Property, Business Loan, Gold Loan, and Car Loan. Net Interest Income (NII) is expected to increase by 7.7% Y-o-Y to Rs. 4,011.9 crores.
  • 2021-01-27 : Kotak Mahindra Bank Q3 net profit up 16%
    Kotak Mahindra Bank posted a net profit of Rs 1,853.5 crore as against Rs 1,595.90 crore last year. The bank reported a growth of 16% on a year-on-year basis backed by home, personal, car, two wheeler and gold loan along with business and mudra loans.
  • 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.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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