Kotak vs Yes Bank Car Loan — Which is Better in 2026?
Kotak Car Loan rate is 8.90% vs Yes Bank at 9.25%. Kotak offers a lower rate, saving you approximately ₹677/month on a ₹10L 7-year loan. Over the full tenure, this adds up to significant savings — use our EMI calculator below to get your exact figures.
Last updated: April 6, 2026
Kotak
8.90%
Interest rate p.a.
✓ Better dealYes Bank
9.25%
Interest rate p.a.
Kotak vs Yes Bank Car Loan — Detailed Comparison
| Feature | Kotak | Yes Bank |
|---|---|---|
| Interest Rate | ✓8.90% | 9.25% |
| Processing Fee | 1% + GST | 1.25% + GST |
| Tenure | 1 – 5 years | 1 – 5 years |
| Eligibility | Salaried/self-employed, 21-65 yrs, min ₹3L/year income | Salaried/self-employed, 21-65 yrs, min ₹3L/year income |
Interest Rate
Kotak
8.90%
Yes Bank
9.25%
Processing Fee
Kotak
1% + GST
Yes Bank
1.25% + GST
Tenure
Kotak
1 – 5 years
Yes Bank
1 – 5 years
Eligibility
Kotak
Salaried/self-employed, 21-65 yrs, min ₹3L/year income
Yes Bank
Salaried/self-employed, 21-65 yrs, min ₹3L/year income
Verdict
Kotak offers a lower car loan rate (8.90%) vs Yes Bank (9.25%). For new cars, OEM tie-ups (Maruti with SBI, Hyundai with HDFC) can offer 0% for short tenures. For used cars, rates are 2-3% higher. Always negotiate the on-road price separately from the loan to avoid hidden mark-ups.
Calculate Your Exact EMI
Compare Kotak vs Yes Bank EMI for your exact loan amount and tenure
Calculate your EMI →Frequently Asked Questions
Which bank is better for car loan — Kotak or Yes Bank?+
Kotak offers a lower car loan rate (8.90%). On a ₹10L, 7-year loan, this saves roughly ₹677/month vs Yes Bank. Also check if the dealer has a preferred lender tie-up that offers a lower rate.
What percentage of car value can I get as a loan from Kotak?+
Most banks including Kotak finance up to 85-90% of the on-road price for new cars. For used cars, the LTV is typically 70-80%. A larger down payment reduces your EMI and total interest outgo.
Can I prepay my car loan without penalty at Kotak or Yes Bank?+
Prepayment charges vary. For floating-rate car loans, RBI has restricted prepayment penalties. For fixed-rate loans, banks may charge 2-5% of the outstanding balance. Check your loan agreement before prepaying.
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Disclaimer: Interest rates shown are indicative as of April 2026 and subject to change without notice. Actual rates depend on your credit score, income, and bank policy. This is for informational purposes only and does not constitute financial advice. Always verify rates with the bank before applying.