Kotak Car Loan Interest Rate

Last Updated 19th Apr 2018

Kotak Car Loan Interest Rate Apr 2018

Kotak Bank New Car Loan interest rate starts from 11.50% and Kotak Bank Used Car Loan interest rates starts from 17.00% . These are Fixed rate loans and are one of the best car loan rates in India. Rate of interest vary by borrower occupation, loan amount and loan tenure. Check Best Offers

Kotak Car Loan
Features New Car Loan Used Car Loan
Loan Tenure Upto 5 years Upto 5 years
Lowest EMI Rs. 2,199 per lakh Rs. 2,199 per lakh
Loan Amount Upto 90% of ex-showroom price Upto 90% of market value
Prepayment Charges Not allowed for 6 months; 5.21% charges after 6 months Not allowed for 6 months; 5.21% charges after 6 months

Car loans at one of the lowest interest rate in the industry

Apply Car Loan @ 9.25%*

Kotak Car Loan

Kotak Bank gives car loan to borrowers who need funds to buy a new car. Benefits of taking vehicle loan from Kotak Bank are:

  • Car loans at one of the lowest interest rate in the industry
  • Customized new and used car loans to meet specific loan requirements of its customers
  • Easy processing and flexible schemes for Kotak Bank customers as offered by Kotak Prime

Kotak Bank Car Loan Interest Rate

Kotak Car Loan interest rate depends upon following factors -

  • Loan amount: Generally banks offer lower interest rates for higher amount. Kotak Bank offers 90% of ex-showroom price of your car.
  • Your Salary: Higher salary bracket individuals are offered loans at lower interest rates. Car Loan interest rate Kotak varies with your net monthly income.
  • Employer Category: Employer category of the borrower is a major deciding factor in order to determine his/her rate of interest. Kotak Bank has a list of company categories of salaried individuals to which they avail vehicle loan. So, higher company category leads to low Kotak car loan rate.
  • Relationship with the Bank: Kotak Bank offers special rates, offers and charges to the existing account holders of the bank. Those who have managed their accounts and made all the payments on time in past will get benefit of low vehicle loan interest rate.
  • Loan Tenure: Kotak Bank vehicle loans are of longer repayment tenure of 5 years.
  • Repayment Capacity: Before giving loan to the borrower, Kotak Bank checks the repayment capacity of the borrower. Bank verifies the repayment capacity of the customer through CIBIL as it has all the details of previous loans taken and their repayments. CIBIL also gives the information of credit card bills payment.

Kotak Car Loan Eligibility

The following table depicts the various eligibility criteria for availing a vehicle loan.

Eligibility Criteria Eligibility Details
Age 21 years - 65 years
Minimum Annual Income Salaried: Rs. 1.00 Lakhs
Self Employed Professionals: Rs. 0.60 Lakhs
Self Employed Businessmen: Rs. 0.60 Lakhs
Minimum Credit Score 700 and above
Loan Tenure 5 years
Loan to Value Ratio 90% of ex-showroom price

Car loan eligibility relies upon different factors but the most important factor is your ability to repay the loan. The main factors on which the eligibility of an applicant depends are:

Age: Age plays an important role to know your eligibility and repayment capacity. Kotak Bank offers auto loan to those who are atleast 21 years old at the time of loan approval and maximum 65 years at the time of loan maturity.

Income: Kotak Bank car loan calculator calculates your eligibility based upon your income. Usually bank set minimum levels of income to apply for car loan. Kotak Bank asks for net annual income of minimum Rs. 1.00 lakhs.

Job stability and Profession: Job stability is important to improve your status and eligibility for vehicle loan from Kotak Bank. If you are working with a reputed company, probability of getting car loan increases as the income is considered to be more stable and bank offers best Kotak car loan interest to the employees of reputed companies.

CIBIL Score: Your past CIBIL history and repayment record of existing loans and credit cards has a direct impact on your Kotak Bank car loan eligibility. If you have a poor repayment record, then you may not get the loan but on the other side, a regular repayment record increases your vehicle loan eligibility. Generally, Bank give loan at a CIBIL score of 700 and above.

Loan Amount: Kotak auto loan amount depends upon your income. Kotak Bank Bank gives 100% of ex-showroom price depending upon the value of the car. To improve chances of approval, apply for a loan amount that you can comfortably service and check your Kotak car loan status online and avial multiple benefits.

Kotak Car Loan Calculator

Car Loan EMI of Kotak Bank is a fixed amount that you pay each month towards the repayment of your car loan till the end of tenure. Lowest EMI offered by Kotak Bank is Rs. 2,199 per lakh loan amount at lowest car loan interest rate of 9.25%. Car Loan EMI of Kotak Bank depends on factors like:

  • Rate of interest is an important factor which affects your EMI. Higher the interest rate, higher will be the EMI.
  • Loan tenure matters equally as longer tenure reduces your monthly EMI per lakh.
  • Your EMI depends upon the amount of loan you are going to borrow. Loan EMI will be high if you apply for a high loan amount.
Kotak EMI Car Loan Calculator
  • Car loan EMI calculation varies from bank to bank depending upon the method of calculation.
  • The standard convention should be to use the EMI in arrears method on reducing balance basis – whereby you pay interest on the loan amount outstanding on a reducing basis at or after the end of the month.
  • Simply key in the loan amount, rate of interest and vehicle loan tenure here and check the EMI amount using the vehicle loan EMI calculator here. In case the EMI amount displayed is different from the one advised to you by the agent, you must check the calculation basis with your vehicle loan agent.


You can calculate the monthly payment (EMI) yourself using the following equation

E= P. r. (1+r)n/[(1+r) n -1]


  • P represents the principal amount that you want to apply for.
  • r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
  • n is the tenure of loan in months
  • E represents the monthly payment or EMI

Let’s say you take out a vehicle loan for Rs. 700,000 to be paid back over 5 years at an interest rate of 9.25%. Your monthly payments for this loan after applying the above formula would be Rs. 14,616 for 5 years.

Kotak Auto Loan Fee and Charges

Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. Kotak Bank allows prepayment of vehicle loan after paying 1 EMI with prepayment Not allowed for 6 months; 5.21% charges after 6 months.

Processing Fee - Kotak Bank asks for a processing fee of 0.00% of loan amount. Min. Rs. 3300and Max. Rs.4,750 with applicable service tax.

Kotak Bank Car Loan Top up, Balance Transfer

  • Kotak Bank offers car loan balance transfer from another bank. This is subject to your meeting other eligibility criteria
  • You can avail additional top-up car loan from Kotak Bank, subject to your eligibility

Documents required

Salaried Employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car


  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car.

Frequently Asked Questions on Kotak Car Loan

What is car loan interest rate offered by Kotak ?

As per current interest rates, Kotak car loan interest rates are in the range of 11.50 % to 13.50%.

What is the lowest EMI per lakh on Kotak Bank car loan?

Lowest EMI per lakh is Rs. 2,199 for Kotak Bank for a loan availed at an interest rate of 11.50% and for a tenure of 5 years.

What is the maximum tenure of Kotak Bank car loan?

You can repay your Kotak Bank car loan in a flexible period of 5 years.

How much car loan I can borrow from Kotak Bank?

Kotak Bank offers you 90% of ex-showroom price of car as loan.

How much processing fee is charged by Kotak Bank on car loan?

Kotak Bank charges a processing fee of Min. Rs. 3,300 and Max. Rs. 4,750 with applicable service tax.

Is age an eligibility factor to get car loan from Kotak Bank?

Yes, age is an important eligibility factor to get Kotak Bank car loan as you should be at least 21 years old at loan approval time and 65 years old at loan maturity time.

Are there any prepayment charges on Kotak car loan?

You can take car loan from Kotak Bank with prepayment not allowed for 6 months; 5.21% charges after 6 months.

Can I add my spouse's income while applying for car loan from Kotak Bank ?

You can combine your income with the income of your spouse to increase your loan eligibility and to get higher loan amount.

Compare Car Loan Interest Rates of Kotak Bank with other banks

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