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Kotak Car Loan Review: Interest Rates @ 6.50%

Kotak Mahindra Prime limited offers a diverse range of car loan products with exceptional features for eligible borrowers.

Kotak Car Loan Review: Interest Rates @ 6.50%

Kotak Mahindra Prime limited offers a diverse range of car loan products with exceptional features for eligible borrowers.

Editor's Rating


Good for

  • Low income earners
  • Multiple car loan payment options
  • Loan Against Car

Bad for

  • Prepayment and late fees
  • Borrowers with a low CIBIL score
  • Borrowers older than 60

Kotak Mahindra Prime Limited is a one-stop shop for all car loan products, including Loans Against Cars and Car Leasing. In addition to its variety of car financing options, Kotak Mahindra interest rates start at 6.50%, which is the lowest interest rate of the 75+ car loans that our financial analysts reviewed. While Kotak car loans come with exceptional features like a low income requirement of Rs. 15,000 and long loan tenures of 5 to 7 years, it's important to keep in mind that only the most eligible borrowers can avail the cheapest Kotak Mahindra car loan.

Table of Contents

What Makes Kotak Mahindra Car Loans Stand Out to Borrowers

As a subsidiary of Kotak Mahindra Bank, Kotak Mahindra Prime Limited acts as their main station for auto loans. Amongst the car loan lenders that our financial analysts reviewed, Kotak stands out with its extremely low minimum interest rate of 6.50%, as well as its wide range of car financing services including car leasing.

Below, you can find the various Kotak car loan options available to you, from new auto loans to used car refinancing.

Kotak Mahindra Bank Car LoansFeatures
Kotak New Car Loan
  • Up to 90% of ex-showroom price
  • For both salaried and self employed borrowers
Kotak Used Car Loan
  • Up to 90% of ex-showroom price
  • For all existing passengers cars
  • Multiple options like pre-approved loan, preferred segment loan, and special loans for salaried employees
Kotak Used Car Refinance
  • Cash against your car
  • For used cars which are free from any loan
Kotak Car Lease
  • For corporate customers
  • 3 to 5 year tenure
  • Car finder service offered

Kotak Mahindra Car Loan Interest Rates

Kotak Mahindra Bank description
Kotak Mahindra Bank description

Depending on your car loan eligibility, Kotak Mahindra Prime Limited offers the lowest car loan interest rate of the banks ValueChampion reviewed. Kotak car loan interest rates are charged between 6.50% and 20.00%, though your final interest rate will be determined by your car loan product of choice, as well as factors like your CIBIL score.

It's important to note that used car loans will find much higher rates of interest than new car loans. Additionally, Kotak's maximum interest rate of 20.00% is the highest ROI amongst the car loan lenders in our review. Our financial analysts recommend that you speak with a Kotak customer service representative to confirm interest rates for your car loan product of choice before applying for a Kotak Mahindra car loan.

Kotak Mahindra Car Loan Eligibility Criteria

Consider this if you seek low car loan interest rates

Interest Rates 6.50% - 20.00%
Margin 90%
Loan Tenure 1 to 7 years

Although Kotak car loan eligibility differs per auto loan product, the lender has lenient terms and conditions across the board. Below, you can find car loan details for each Kotak Mahindra auto loan scheme.

KMPL Car LoanLoan AmountTenure
Kotak New Car Loan90% ex-showroom price1 to 7 years
Kotak Used Car Loan90% of car valuation1 to 5 years
Kotak Used Car Refinance90% of car valuation1 to 5 years
Kotak Top Up Against Car Loan25x current car loan EMI1 to 3 years

It's important to note that salaried borrowers must be within the ages of 21 and 60 to apply for a Kotak car loan, while self-employed borrowers should be at least 21 and no older than 65 years old. As advertised, borrowers outside of this age requirement range may be eligible for an auto loan as long as they have a guarantor.

As a final mention, Kotak Mahindra Prime Limited has a very generous income and job requirement. Salaried borrowers should make Rs. 15,000 per month, while self-employed borrowers should have at least 1 year of employment stability. With this in mind, ValueChampion recommends Kotak Mahindra to low income earners, as most other lenders have an income requirement of at least Rs. 20,000 per month.

Kotak Mahindra Car Loan Processing Fee and Other Charges

Kotak Mahindra does not advertise its car loan processing fee online, therefore you should speak to Kotak car loan customer care to estimate your total cost of borrowing.

Additionally, other Kotak car loan charges are comparably higher than the car loan lenders we analysed. For instance, the Kotak prepayment penalty fee is 5.21% of the principal outstanding. The lender's late payment fee of 3.00% is also higher than most other lenders who charge a standard 2.00% of the EMI.

Kotak Car Loan Payment and EMI Calculator

Eligible borrowers can choose from multiple Kotak car loan payment options. Below, you can review the different car loan EMI options available for new car loans.

EMI Payment SchemeFeatures
Margin Money Scheme
  • Customers pays margin money to dealer directly
  • Financed amount is repaid between 12 - 60 EMIs
Step Up Scheme
  • Best for luxury car experience
  • Low EMIs in early period of repayment
  • EMI increases after every year, 6 months or quarter
Low EMI, Balloon Scheme
  • 10 - 25% of cost of car to be paid as last EMI
  • Reduced EMI for the rest of the tenure
Advance EMI Scheme
  • Pay multiple EMIs upfront
  • Reduced EMI for the rest of the tenure

If you want to calculate an estimate of your total cost of borrowing, click here to view the Kotak car loan calculator.

Kotak Mahindra Car Loan: Apply Online

Kotak Mahindra Prime Limited provides ample online assistance to applicants. Whether you are seeking to apply by phone or an online portal, Kotak Mahindra customer service is available to answer your queries and guide you through the car loan application process.

Documents Required for Car Loan from Kotak Mahindra Bank

Kotak Mahindra requires standard documents for proof of identity, address and income. Below, you can find required documents per applicant type.

SalariedSelf Employed
KMPL Application Form (signed by applicant)YY
Latest Salary SlipYN
Form 16 / IT ReturnsYN
Proof of ResidenceYY
Verification from your BankerYY
2 years P&L Account and Balance StatementsNY
Photograph (signed by applicant)YY

Borrowers seeking a used vehicle loan require extra documents including: a RC copy, an insurance copy, and a valuation form from a Kodak-authorized valuation agency.

Kotak Mahindra Car Loan Customer Care

If you have any queries about the Kotak Mahindra car loan application process, contact Kotak Mahindra customer care through any of the methods below.

Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.