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Kotak Bank Car Loan EMI Calculator

Kotak Bank Car Loan Calculator India 2020

Last Updated 20th Aug 2020

  • Get monthly EMI as low as ₹ 2,199 per lakh with Kotak Bank now offering vehicle loans with loan tenure upto 5 years.
  • Lowest car loan interest rate currently offered by Kotak Bank is 11.50%, for which the EMI per ₹ 1 Lakh loan amount comes to ₹ 4,684 for a 2 year loan and ₹ 2,199 for a 5 year loan.
Loan Amount2 Year Loan4 Year loan5 Year loan
₹ 3 Lakh₹ 14,052₹ 7,827₹ 6,598
₹ 6 Lakh₹ 28,104₹ 15,653₹ 13,196
₹ 12 Lakh₹ 56,208₹ 31,307₹ 26,391
Car Loan EMI Calculator
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Car Loan EMI Calculator Kotak Bank

Kotak Bank Car Loan EMI

  • Car 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 vehicle loans with loan tenure upto 5 years, the loan EMI can be as low as ₹ 2,199 per lakh, to make it more affordable and convenient to meet your car needs. Rate of interest offered by Kotak Bank are as low as 11.50%.

The 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.

Features of Kotak Bank Car Loan

  • Borrower age should be between 21 years to maximum 65 years.
  • Maximum vehicle loan amount offered by Kotak Bank is upto 90% of ex-showroom price.
  • Interest rates starts @ 11.50% depending upon down payment, net income and other factors.
  • Processing fee in Kotak Bank is Minimum ₹ 3,300 and Maximum ₹ 4,750.

Car Loan EMI Calculator Kotak Bank at different tenure

Car Loan EMI for different loan amounts and tenures @ 11.50% interest rate
Loan Amount 2 Years 3 Years 5 Years 7 Years
1 Lakh₹ 4,684₹ 3,298₹ 2,199₹ 1,739
3 Lakh₹ 14,052₹ 9,893₹ 6,598₹ 5,216
5 Lakh₹ 23,420₹ 16,488₹ 10,996₹ 8,693
10 Lakh₹ 46,840₹ 32,976₹ 21,993₹ 17,386
  • As you can see in the above table, for various loan amounts taken at the lowest rate of interest, EMI differs with changes to tenure at 2 to 7 years. Your EMI is higher when you take loan for a shorter tenure of 2 years and it is lower when you apply for a higher tenure of 7 years.
  • Your EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, every month the proportion of interest payment and principal repaid within each EMI is different. With every EMI, the proportion of principal repayment in EMI keeps increasing and the interest component in EMI keeps reducing.

Use EMI Calculator to calculate your interest on vehicle loan at different tenure

Vehicle Loan EMI for ₹ 1 Lakh loan amount at lowest 11.50% interest rate offered by Kotak Bank for different tenures
2 years 3 years 5 years
Kotak Bank EMI for a loan amount ₹ 1 Lakh at 11.50% ₹ 4,684 ₹ 3,298 ₹ 2,199
Total amount you pay back to the bank including principal and interest ₹ 1,12,417 ₹ 1,18,714 ₹ 1,31,956
Interest you have to pay over loan tenure ₹ 12,417 ₹ 18,714 ₹ 31,956

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 a ₹ 1,00,000 loan for a period of 5 years, you pay the lowest EMI of ₹ 2,199. However, you pay an interest of ₹ 31,956 on a ₹ 1,00,000 loan.

In contrast, if you take a ₹ 1,00,000 loan from Kotak Bank at the lowest loan rate offered for a period of 2 years, you pay a higher vehicle loan EMI of ₹ 4,684 and pay an interest of only ₹ 12,417 which is less than half of what you paid in 5 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting Kotak Bank Car Loan EMI

  • Loan amount – This is the amount borrowed by a borrower from Kotak Bank. If you apply for a higher loan amount, your monthly EMI will be high. Kotak Bank gives maximum loan of 90% of ex-showroom price of the car.
  • Interest rate - Interest rates is the rate charged by Kotak Bank on your vehicle loan. Higher interest rate increases your loan EMI which will increase the total cost of the loan. Lowest interest rate offered by Kotak Bank is 11.50%. However, it is advisable to do complete market research and compare rates online before you apply for loan.
  • Loan tenure – This is the period in which you can repay your loan in Kotak Bank. Longer loan tenure means lower car loan EMI. Generally, Kotak Bank offers loan for a maximum tenure of 5 years.

Car 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 Car 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 Car Loan of ₹ 2 Lakh for 2 years at an interest rate of 9.25%. EMI calculated for this loan amount is ₹ 9,160 and the total annual EMIs to be paid annually is ₹ 1,09,919. The EMI schedule of loan for 2 years is explained below in the table –

Amortization Schedule for a Car Loan of ₹ 2 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 ₹ 5,813 ₹ 30,827 ₹ 36,640 ₹ 1,69,173
2021 ₹ 11,547 ₹ 98,372 ₹ 1,09,919 ₹ 70,801
2022 ₹ 2,478 ₹ 70,801 ₹ 73,279 ₹ 0

Each Car 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 Car Loan of ₹ 2 Lakh, taken at the lowest interest rate of 9.25%, EMI paid is ₹ 9,160 and an annual total of EMIs is ₹ 1,09,919, the interest component is ₹ 14,523 while the principal component is ₹ 95,396 in year 1 of loan disbursement. You repay only 47.7% of the total principal after paying 12 EMIs during the first year.

In year 2, the interest component of EMI is around 4.84%, while the principal component is around 95.16%. Upto 2 years, you have cumulatively repaid 100% of your total Car Loan.

Kotak Bank Car Loan Calculator Formula

Emi Calculator Formula


  • 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

Here is an illustration of how Kotak Bank Car Loan EMI is calculated:

Let’s say you take out a car loan for ₹ 7,00,000 to be paid back over five years (or 60 months) at an interest rate of 10%. Your monthly payments for this loan after applying the above formula would be ₹ 14,873.

In above formula,

P = loan amount. This should be 90% of ex-showroom price

n = tenure in months. For Kotak Bank, this can be 5 years.

r = rate of interest per annum. Current Kotak Bank interest on car loan is 11.50%

Tips to decide the right amount of EMI

  • Ascertain the amount you need to borrow: It is important that before approaching a bank for loan, you need to estimate the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. 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 a loan 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.
  • Calculate your Kotak Bank car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. Kotak Bank provides an LTV upto 90 % of ex-showroom price and expects the borrower to fund the remaining value of property by own money. For example, at its lowest LTV, Kotak Bank would expect its borrowers to provide margin money. In case this margin payment is higher than your available funds as estimated by you, you might need to look for higher LTV loans, which may carry higher interest rates and hence, will result in higher EMIs.
    • Multiplier based loan amount eligibility – Kotak Bank calculates your loan amount eligibility by applying a multiplier to your net take home salary. This is the simplest method for calculating a loan eligibility used by banks. Generally it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your employer company based on its reputation, stability, size and growth in turnover.
    • FOIR based loan amount eligibility – Kotak Bank will also estimate your Fixed Income to Obligations Ratio (FOIR) to ascertain the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. Kotak Bank's assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short term loans to improve your eligibility.

Quick guide on Kotak Bank Car Loan

  • Key Features
    • Loan available for both salaried and self employed.
    • Borrowers within the age group of 21 and 65 years.
    • Maximum loan tenure of 5 years.
    • Interest rates in the range of 11.50% to 13.50%.
    • Lowest EMI of ₹ 2,199 per lakh.
  • Processing Fees: 0.00% of loan amount. Minimum ₹ 3,300 and Maximum ₹ 4,750
  • Kotak Bank vehicle loan calculator calculates EMI considering a combination of loan amount, interest rate and loan tenure.

Car loan EMI – EMI changes in case of prepayment

In case you prepay your vehicle loan, a small penalty is levied. Prepayment in Kotak Bank is Not allowed for 6 months; 5.21% charges after 6 months. When you prepay, the outstanding balance on your vehicle loan reduces. Kotak Bank gives you two options:

  • Reduce your loan tenure and keep EMI on your car loan unchanged: This option allows you to close your loan earlier and save the interest outgo associated with the remaining tenure. This is suitable for borrowers who feel that they have adequate income to continue servicing the same level of EMIs.
  • Reduce the amount of EMI and keep your loan tenure same: This option allows you to reduce your monthly EMI and hence, increases the availability of monthly surplus which you can deploy for other purposes. This is suitable for borrowers who anticipate higher monthly personal expenses and hence, would want to reduce their monthly EMI obligations.


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

It is advised to calculate vehicle loan EMI prior to taking a loan. There are several benefits of calculating your Kotak Bank housing loan EMI as discussed below-

  • 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 spending accordingly.
  • Based on the EMI amount, you can opt for making prepayment of your car loan in future when you have surplus amount.

What is the lowest EMI per lakh offered by Kotak Bank on Car loan?

Kotak Bank offers car loan at 11.50% interest rate and hence lowest EMI on per lakh loan amount is ₹ 2,088

Can I prepay my Kotak Bank car loan?

Kotak Bank offers you an option of prepayment at Not allowed for 6 months; 5.21% charges after 6 months charges.

Is there any processing charge on car loan from Kotak Bank?

Car Loan from Kotak Bank charges a processing fee of Minimum.₹ 3,300 and Maximum is ₹ 4,750

Will I get the car loan from Kotak Bank if I have a bad credit score?

No, for taking a loan from Kotak Bank, an applicant must have a good credit score of 700 and above. Usually, most of the banks avoid giving loans if you have low credit score.

How does a car loan repayment happen?

The repayment of a car loan happens in the form of an EMI (Equated Monthly Installment) through the customer's bank account. The customer is required to present a few post dated cheques and sign an ECS mandate in favor of the bank at the time of disbursing the loan.

Can I have a co-applicant while applying for a Car loan with Kotak Bank?

Yes, you can opt for a co-applicant to take car loan from Kotak Bank that will increase your car loan eligibility as the income of the co-applicant is also taken into account.

Kotak Bank Car Loan Reviews 3.5/5  by 1 customers
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Kotak Car 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.
  • 2020-06-01 : Kotak Mahindra Bank extends EMI moratorium till August.
    In line with Reserve Bank of India directive on the extension of the loan EMIs moratorium on personal, home, two-wheeler, car and gold loans, Kotak Mahindra Bank extended the deferment of the EMIs till August. Reserve Bank of India and Kotak aims to help customers sail through the economic crisis caused by coronavirus pandemic.
  • 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.
  • 2019-08-23 : Kotak Mahindra Bank launches attractive offers on retail loans
    Kotak Mahindra Bank is all set to celebrate its 3rd Kotak loan festival. During the festival, customers can avail of attractive interest rates and quick approvals on all types of retail loans, including personal loans, home loans, and car loans, among others. Further, loan applicants could even earn vouchers worth Rs. 25,000 during the loan festival.
  • 2018-12-03 : Kotak Bank revises MCLR
    Kotak Bank has revised its MCLR for the month of December. Two year and three-year MCLR stands at 9.05%. The rates continue to be in the range of 8.05% and 9.05%. Six-month MCLR is now at 8.85% and that of one year is 9.00%. The rates are effective from December 1, 2018.
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