|Features||New Car Loan||Used Car Loan|
|Loan Tenure||Up to 5 years||Up to 5 years|
|Lowest EMI||₹ 1,957 per lakh||₹ 1,957 per lakh|
|Loan Amount||Up to 90% of ex-showroom price||Up to 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|
Kotak Bank Car Loan Interest Rate
Kotak Bank decides the interest rate for the borrower based on many factors, including his credit history, loan amount, loan tenure, income and also his employment category. The borrower’s repayment capacity is decided as per his CIBIL score –
|Factors That Determine Car Loan Interest Rate|
|Loan amount||The bigger the loan, the lower is its interest rate|
|Your Salary||Higher the earning, lower the interest rate.|
|Employer Category||The employment category makes a huge difference on the rate of interest at which one gets the loan.|
|Relationship with the Bank||Existing customers of Kotak Bank with a good reputation in terms of repayment history can get car loans at slightly lower rates|
|Loan Tenure||Kotak Bank offers new car loans with a loan period of 7 years.|
|Repayment Capacity||Kotak Bank checks the repayment history through the CIBIL score|
Kotak Bank Car Loan Eligibility Criteria
All banks have set criteria for verifying the eligibility of a loan applicant. The factors that play a role in determining the eligibility criteria include many things, like the age of the borrower, his annual income, credit score, the tenure of loan and even the loan to value ratio. In the table that we have below, we have given the factors that affect the eligibility criteria for obtaining Kotak Bank car loan –
|Eligibility Criteria||Eligibility Details|
|Age||21 years – 65 years|
|Minimum Annual Income||Salaried: ₹ 1 Lakhs Self Employed Professionals: ₹ 0.60 Lakhs Self Employed Businessmen: ₹ 0.60 Lakhs|
|Minimum Credit Score||700 and above|
|Loan Tenure||5 years|
|Loan to Value Ratio||90% of ex-showroom price|
Kotak Bank Car Loan EMI Calculator
Basically, the Kotak Bank Car Loan EMI is the amount one needs to pay to the bank through easy instalments on pre-defined dates every month. Given below are the factors that determine your EMI –
|Factors Determining EMI|
|Rate of interest||A high rate of interest leads to a higher EMI|
|Loan tenure||A higher loan tenure will lead to a lower EMI|
|Loan Amount||The higher the loan amount, the higher will be the EMI|
Once you have got to know the Kotak Bank car loan interest rate that will be charged to you, you can quickly determine the EMI through a free Yes Bank car loan EMI Calculator. To use an EMI calculator, you simply need to enter the loan amount, the rate of interest and the loan tenure and he can immediately get to know the EMI he will have to pay every month. All the EMI calculators work on a standard principle equation E= P. r. (1+r)n/[(1+r) n -1] Where, P is the principal amount (loan amount) r is the rate of interest per month which is calculated as rate of annual income/ (12*100) n is the tenure of the loan in months E represents the monthly payment or EMI
Kotak Bank Auto Loan Fee and Charges
All banks have some standard charges on the processing of a loan. These charges include two components – foreclosure penalty and processing fee. The foreclosure penalty is levied on the loan applicant in case one needs to pay back his loan, in part or in full, earlier than its maturity. On the other hand, the processing fee is levied when the bank issues you the loan. The Kotak Bank auto loan fee and charges have been given below –
|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 Min. ₹ 3,300 and Max. ₹ 4,750 with applicable service tax.|
How can I Transfer my Kotak Bank Car Loan Balance?
You can transfer your Yes Bank car loan balance from another bank. However, the availability of this feature depends on your eligibility and so, you should visit the nearest Yes Bank branch and check your eligibility. Once it’s for sure that you can initiate the transfer process, you can start the paperwork.
How can I top up my Kotak Bank Car Loan?
You can top up the car loan once you’ve checked your eligibility for doing so. You can check this at any Kotak Bank branch that has a car loan department.
Documents required for Kotak Bank Car Loan
To get a car loan, the applicant needs to first submit a set of documents to Kotak Bank. These documents are required by the bank to analyze the loan application and process it accordingly. Also, it must be noted here that the requirement of the documents differs from a salaried employee to a self-employed professional. Below, we have a table that contains the details of the documents one needs to share with Kotak Bank when applying for a car loan-
|Type of Employment||Documents Required|
|For Salaried Individuals||Minimum age to apply: 21 years; Maximum permissible age at loan maturity: 58 years; Minimum annual income: Rs.3 lakhs (3 months’ salary slips/ Form 16 needed for confirmation); Minimum work experience in current job: 1 year|
|Self Employed Individuals||Minimum age to apply: 21 years; Maximum permissible age at loan maturity: 65 years; Minimum annual income: Rs.2 lakhs (2 years ITR/ Previous year ITR with adv. tax challan for current year showing higher tax paid than previous year, needed for confirmationMinimum experience in same business: 2 years.|
|Partnership Firms||Minimum Annual Income: Rs.2 lakhs (2 years Audited Financials / ITR for last 2 years if audited financials not available are needed for confirmation). Minimum experience in same business: 2 years.|
|Private Limited Company/ Ltd. Co.||Minimum Annual Income: Rs.2 lakhs (Last 2 years ITR & Audited Financial statement needed for confirmation). Minimum experience in same business: 2 years|
Factors Affecting Kotak Bank Car Loan Interest Rates
The interest rate at which a Kotak Bank car loan is provided to an individual is decided through a set of factors. It must be noted that the Kotak Bank car loan rates start as low as 7.35 per cent per annum. Given below is a list of all the factors that help the bank figure out the interest rate that it charges to the loan applicant: Loan amount The bigger the loan, the lower is its interest rate Your Salary Higher the earning, lower the interest rate. Employer Category The employment category makes a huge difference on the rate of interest at which one gets the loan. Relationship with the Bank Existing customers of Kotak Bank with a good reputation in terms of repayment history can get car loans at slightly lower rates Loan Tenure Kotak Bank offers new car loans with a loan period of 7 years. Repayment Capacity Kotak Bank checks the repayment history through the CIBIL score
Q: What is car loan interest rate offered by Kotak Bank?
A: Going by the current interest rates, the car loan interest rates from Kotak are in the range of 6.50%to 20%.
Q: What is the lowest EMI per lakh on Kotak Bank car loan?
A: The EMI per lakh from Kotak car loan is Rs 1,504 for a loan taken at an interest rate of 6.50% and for a tenure of 5 years.
Q: What is the maximum tenure of Kotak Bank car loan?
A: Kotak Bank Car loan can be availed for a flexible period of 5 years.
Q: How much processing fee is charged by Kotak Bank on car loan?
A: A minimum of Rs 3,300 and a maximum of Rs 4,750 is charged by Kotak Bank as the processing fee.
Q: How much car loan I can borrow from Kotak Bank?
A: Kotak Bank offers you 90% of the ex-showroom price of car as loan.
Q: Is age an eligibility factor to get car loan from Kotak Bank?
A: Yes, age is one of the most important eligibility factors to get a car loan from Kotak Bank. It must be noted that one should be at least 21 years old at loan approval time and 65 years old at loan maturity time.
Q: Are there any prepayment charges on Kotak car loan?
A: You can get a car loan from Kotak Bank on the condition of no provision for prepayment for 6 months and at 5.21% charge after 6 months.
Q: Can I add my spouse’s income while applying for car loan from Kotak Bank ?
A: Yes, you can combine your income with the income of your spouse to increase your loan eligibility and to get a higher loan amount.