Kotak Bank Car Loan
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Kotak Bank Car Loan

Team CARS24
editor
Kotak Mahindra Bank or simply Kotak Bank is one of the more popular banks in India. It is headquartered in Mumbai and enjoys a network of  1,391 branches spread across the nation. Kotak Bank offers car loan at low-interest rates. It also offers car loans of as low as Rs 1 lakh, which is something that can get really helpful for those falling short of some funds when buying a vehicle. The table that we have below shows the highlights of Kotak Bank car loan
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 the 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 Eligibility Criteria

All banks have a pre-defined guide for figuring out the eligibility of a loan applicant. The factors that play a role in determining the eligibility criteria are things like the age of the applicant, his 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: Rs 1 Lakhs Self Employed Professionals: Rs 0.60 Lakh Self Employed Businessmen: Rs 0.60 Lakh
Minimum Credit Score 700 and above
Loan Tenure 5 years
Loan to Value Ratio 90% of the ex-showroom price

Kotak Bank New Car Loan Features and Benefits

Below is a list of some of the salient features of Kotak Bank new car loan –

  • Low interest rates starting at as low as 6.5%
  • Low processing fee
  • No hidden charges
  • The borrower can decide the date of monthly instalments can be decided by the customer
  • The loan tenure can be as large as 5 years
  • Kotak Bank provides car loan facility for both new and used cars
  • The loan can be availed for all types of cars

Factors Affecting Kotak Bank Car Loan Eligibility

Kotak Vehicle Car Loan eligibility is determined based on a handful of factors. Below, we have some ways through which an individual can increase his loan eligibility. 
Maintain a good credit score Individuals with a good credit score can get car loans more easily. One should maintain a credit score of 750 and above to easily have his car loan application processed at the lender’s end.
Availing a lower loan amount Banks and other lenders approve the loan if the loan amount is low as doing this often makes an individual more eligible.
Shorter duration Individuals who choose a shorter repayment tenure can avail the loan at lower interest rates. So, basically, the lower the loan tenure, the lower will be the interest rate and the easier it for you to pay back the money.
Low debt-to-income ratio Before approving the car loan, banks check the individual’s debt-to-income ratio. In case the individual has a significant balance between their income and expenses, the chances of getting the loan approved at lower interest rates increases.

Kotak Bank Used Car Loan

Kotak Bank provides new car loan as well as a used car loan, with the latter being for those who want to buy a second-hand car. However, it must be mentioned here that it is not as easy to get a loan for a used car as it is for a new car. However, one can still make use of the finance option provided by Kotak Bank when purchased a used car, that is if he meets the eligibility criteria.
Kotak Bank Used Car Loan Interest Rate 6.5% per annum
Min Loan Amount Rs 100,000
Max Loan Amount (Loan to Value) Loan up to 90% of market Price
Loan Tenure 1 year to 5 years
Kotak Bank Used Car Loan Lowest EMI / Lac Rs 1,957
Minimum Net Monthly Income Rs 15,000
Minimum ITR for Self Employed Rs 300,000
Age Criteria Salaried: 21 years to 60 years Self Employed: 21 years to 65 years
Types of Cars For All New Passenger Cars, Multi Utility Vehicles (MUVs), and Sport Utility Vehicle (SUVs).
Kotak Bank Used Car Loan Processing Fee Up to 1% of the loan amount
Foreclosure Charges 5.25% of principal outstanding after 6 months, foreclosure not allowed before that
Basic Documentation ID Proof, Address Proof, Salary Slip, Bank Statement and Car Quotation

Kotak Bank Loan Against Car

If you have paid all your car loan EMIs timely for a minimum period of 9 months, you can simply opt for a top-up on the Kotak Bank car loan. Through this, the loan holder benefits from an additional loan to amount, at a competitive rate of interest. Kotak Bank Car Loan against Car scheme offers the below features:
  • Finance option of up to 90% of the original loan value of the car available
  • Car valuation is not mandatory.
  • A wide range of approved models and manufacturers are considered by Kotak Bank
  • One can benefit from quick and hassle-free disbursal of the additional loan amount.

Kotak Bank Car Loan EMI Calculator

Kotak Bank Car Loan EMI is the fixed amount that the borrower needs to pay to the bank every month as partial repayment of your car loan. Using a car loan EMI calculator, the borrower can get to know the EMI he’ll have to pay for a certain amount. This can help him plan his finance better and, if required, even adjust the sum he plans to borrow. The free tool calculates the EMI based on the following factors –
Factors Determining EMI
Rate of interest This has a direct relation with your EMI. Higher the rate of interest, higher will be the EMI.
Loan tenure Higher the loan tenure, lower will be the EMI. The vice versa also holds true.
Loan Amount Of course, another factor that has a direct relation with your EMI is the loan amount. More the amount you borrow, higher will be the EMI.

FAQs

Q: How much interest is charged by Kotak Bank on car loan?

A: Currently, Kotak car loan interest rates range from 6.50% to 20.00%.

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

A: The lowest EMI per lakh on Kotak Bank Car Loan is Rs. 1956.61.

Q: What is the maximum tenure of Kotak Bank car loan?

A: The maximum loan tenure of Kotak Bank car loan is 5 years.

Q: How much car loan can I borrow from Kotak Bank?

A: Kotak Bank offers you a maximum loan of 90% of the ex-showroom price of the car

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

A: Age is among the most important eligibility factors to get Kotak Bank car loan. To obtain a Kotak bank cr loan, one must 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 Bank car loan?

A: In case of car loan from Kotak Bank, prepayment is not allowed for 6 months. However, it’s allowed at 5.21% prepayment charges after 6 months.

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

A: Yes, you can add your spouse to combine your income to increase your loan eligibility and get a higher loan amount from Kotak Bank.

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