Kotak Bank Car Loan EMI Calculator
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Kotak Bank Car Loan EMI Calculator

Team CARS24
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Kotak Mahindra Bank or simply Kotak Bank is one of the more famous banks in operation in India. The banking institute is headquartered in Mumbai and operates through as many as 1,391 branches situated across the country. Among other financial services, Kotak Bank even offers a car loan irrespective of whether you wish to buy a new car or a used one. In case you are deciding to take a car loan, you should be aware of the EMI you’ll have to pay every month. To calculate the EMI, you can avail of the service of Kotak bank Car Loan EMI calculator totally free of cost. Here’s how this tool works.

How Does Kotak Bank Car Loan Calculator Work?

As is the case with all EMI calculators, Kotak Bank car loan EMI calculator works on a pre-decided formula. Through this EMI calculator, you can easily find out the exact amount you will have to pay every month at a pre-defined rate of interest for a given loan tenure. The formula on which Kotak bank car loan EMI calculator works is same as that for others. It has been given as follows –

EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]

Here

‘P’ stands for the Principal amount

‘R’ stands for the monthly rate of interest

‘N’ stands for the number of instalments

Please note – The above formula doesn’t take into account the pre-payment that is made for early repayment of the loan.

Kotak Bank Car Loan EMI Calculator India 2021

Currently, Kotak Bank offers car loan at a starting interest rate of just 6.5%, The bank also has a low processing fee. Also, when taking a car loan from the Kotak bank, you can opt for a loan tenure of as much as 5 years. Also, the bank offers a finance option of up to 90% of the ex-showroom price of the new car and 90% of the market value of a used car. Kotak Bank not just offers new car loans and the used car loans to salaried employees, but even to to businessmen, proprietorship firms, partnership firms, companies, trusts, and societies.

Prior to getting a new or a used car loan, you should first plan the repayment properly. For this, the Kotak Bank Car Loan EMI calculator comes in handy. Like we said, the new car loan interest rates that Kotak Bank provides the finance at 6.5%. In the table we have below, we show you the car loan EMI for different loan amounts and tenures @ 6.50% interest rat

Loan Amount2 Years3 Years5 Years7 Years
1 Lakh₹ 4,455₹ 3,065₹ 1,957₹ 1,485
3 Lakh₹ 13,364₹ 9,195₹ 5,870₹ 4,455
5 Lakh₹ 22,273₹ 15,324₹ 9,783₹ 7,425
10 Lakh₹ 44,546₹ 30,649₹ 19,566₹ 14,849

Kotak Bank Car Loan EMI Calculator – Features and Benefits

The Kotak Bank Car Loan EMI Calculator can be put to use totally free of cost. It can easily perform large and complicated calculations within a second, which means you don’t need to perform such tricky calculations and even avoid a high risk of inaccuracy. The salient features of the EMI calculator of Kotak Bank include:

  • The prepayment option on the EMI calculator can be used to find out the effect that the prepayment would have on the EMI.
  • Free of cost.
  • User-friendly.
  • Can provide a breakup of the loan
  • Provides accurate results within seconds.
  • The calculator can be used several times to compare different rates of interest

Kotak Bank Car Loan EMI Calculator Tenure

In the table provided below, one can have a look at the EMI for multiple loan amounts taken at a hypothetical rate of interest of 7 per cent. As you can see in the table given below, the EMI changes as the tenure of the loan changes from 2 years to 7 years.

  • Basically, the EMI is inversely proportional to the loan tenure.
  • However, the interest one pays is higher if the loan tenure is higher.
  • The EMI one has to pay comprises of the principal component as well as the interest that is payable at the decided rate of interest. While the EMI remains the same throughout the loan period, the interest component of every EMI differs. It’s the highest in the first EMI you pay and reduces with every instalment.
  • Basically, the EMI is inversely proportional to the loan tenure.
  • However, the interest one pays is higher if the loan tenure is higher.
  • The EMI one has to pay comprises of the principal component as well as the interest that is payable at the decided rate of interest. While the EMI remains the same throughout the loan period, the interest component of every EMI differs. It’s the highest in the first EMI you pay and reduces with every instalment.

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

The table we have given below clearly shows that the loan tenure is inversely proportional to the EMI you have to pay. However, the interest is directly proportional to the loan tenure. For instance, in case you take a loan of Rs 1,00,000 for a period of 5 years, you need to pay the lowest EMI of Rs 1,957. However, you end up paying Rs 17,397 in interest on a loan of Rs 1,00,000.

Vehicle Loan EMI for ₹ 1 Lakh loan amount at lowest 6.50% interest rate offered by Kotak Bank for different tenures2 Years3 Years5 Years
Kotak Bank EMI for a loan amount ₹ 1 Lakh at 6.50% ₹ 4,455₹ 3,065₹ 1,957
Total amount you pay back to the bank including principal and interest₹ 1,06,911₹ 1,10,336₹ 1,17,397
Interest you have to pay over loan tenure₹ 6,911₹ 10,336₹ 17,397

Factors affecting Kotak Bank Car Loan EMI

  • Amount Borrowed – Higher the loan amount, the higher is the EMI. It must be noted here that Kotak Bank offers a maximum loan of up to 90 per cent of the ex-showroom price of the car.
  • Interest rate – Another important factor is the interest rate at which Kotak Bank gives you the car loan. As is easy to understand, a higher interest rate leads to a higher EMO over a given time period. Currently, the lowest interest rate offered by Kotak Bank is 6.5%.
  • Loan tenure – A loan tenure is basically the period in which you have to repay the car loan. At Kotak Bank, you can get a car loan for a maximum of 5 years. It should be noted here that the larger the loan tenure, the lower will be the EMI but higher the interest paid.

Kotak Bank Car Loan Amortization Calculator

An amortization schedule is the table of regular loan payments that you need to make with every EMI. It also shows the total principal component and the interest paid with every EMI. While every EMI you pay is a fixed sum, the principal amount and the interest components are not fixed. With every passing EMI, the principal component increases and the interest amount reduces.

YearInterest Paid During The YearPrincipal Repaid During The YearTotal Amount Paid During The Year (Interest + Principal)Outstanding Principal
2020 Rs 3,025Rs 15,295Rs 18,320Rs 1,84,705
2021 Rs 13,047Rs 96,872Rs 1,09,919Rs 87,832
2022 Rs 3,767Rs 87,832Rs 91,599Rs 0

Kotak Bank Car Loan Calculator Formula

The standard formula on which all the car loan EMI calculators work is –

EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]

Here,

P is for the principal (money borrowed)

r is the rate of interest per month which is calculated as rate of annual income/ (12*100)

n is the loan tenure of loan in months

E is the EMI (equated monthly payment)

Kotak Bank Car Loan Tips

  • Decide the amount required: You should first decide the amount you need to borrow before you end up approaching the bank for the loan. The amount you need to borrow should be decided based on how easily you’ll be able to pay back through EMIs every month.
  • Know your Kotak Bank car loan eligibility: In case you are not eligible to borrow a certain loan amount from Kotak Bank, your loan application can be rejected. Hence, it’s required to know your eligibility before you file an application. This eligibility is calculated as per your repayment capacity based on the monthly income. There are a couple of ways to figure out your eligibility.

Multiplier based loan amount eligibility – Kotak Bank calculates the loan eligibility by applying a multiplier to your net take-home income. In most cases, the result turns out to be 2.5 to 3 times the annual income for salaried individuals and 6 times the annual income for self-employed professionals. Also, this multiplier is calculated based on your employer company’s reputation, stability, size and growth in turnover.

FOIR based loan amount eligibility – The Kotak Bank calculates your Fixed Income to Obligations Ratio (FOIR) to get to know the maximum EMI you can pay on basis of your current income and other monthly expenses. The proportion of fixed income to your calculated fixed obligations gives your FOIR. In most cases, banks are known to lend up to a maximum FOIR of 0.50.

Multiplier based loan amount eligibility – Kotak Bank decides the loan eligibility of the borrower by applying a multiplier to the net take-home income. The result is 2.5 to 3 times the annual income for salaried individuals and 6 times the annual income for self-employed professionals. That said, the multiplier is decided as per the employer company’s reputation, stability, size and growth in turnover.

Kotak Bank Car Loan EMI Prepayment

If you decide to return the borrowed amount to bank ahead of its maturity period, you will have to pay a small penalty that is known as a prepayment penalty. It must be noted here that prepayment is not allowed for 6 months; 5.21% charges after 6 months

FAQs

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

A: It is required to calculate car loan EMI before taking the loan as there are many benefits of doing so. These include –
– If the EMI turns out to be higher than your monthly budget, you can apply for a lower loan amount and reduce the monthly burden.
– If you know the EMI already, you can plan your expenditures accordingly.
– Based on how much your EMI is, you can plan to make prepayment of the loan when you have surplus.

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

A: The lowest EMI per lakh that Kotak Bank offers at 6.50% interest rate is Rs 2,061.

Q: Can I prepay my Kotak Bank car loan?

A: No prepayment of Kotak Bank car loan is allowed for first six months. After that, you can prepay the loan with a prepayment penalty of 5.21%.

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

A: Kotak Bank charges a processing fee of Minimum.₹ 3,300 and Maximum is ₹ 4,750 on new and used car loans.

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

A: No, for getting a car loan from Kotak Bank, you must have a credit score of 700 and above.

Q: How does a car loan repayment happen?

A: One repays the car loan through EMI (Equated Monthly Installment). Also, the customer should present a few post dated cheques and sign an ECS mandate in favor of the bank at the time of disbursing the loan.

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

A: Yes, a co-applicant can be brought in when submitting application to take car loan from Kotak Bank as it increases chances of getting the car loan because the income of co-applicant is also taken into account. .

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