1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. For car loans, EMIs are used to repay both principal and interest each month so the loan is paid off in full over the tenure.

2. How EMI Calculation Works

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (Rs)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that would pay off the loan with interest over the specified period.

3. Kotak Mahindra Bank Car Loan Features

Details: Kotak Mahindra Bank offers competitive interest rates on car loans, flexible repayment options from 1-7 years, and loans up to 100% of the car's ex-showroom price (terms and conditions apply).

4. Using the Calculator

Tips: Enter the principal amount in Rs, annual interest rate (without the % sign), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my car loan EMI?
A: The three main factors are loan amount, interest rate, and loan tenure. Higher amounts/rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q2: Does Kotak Mahindra Bank charge prepayment penalties?
A: Kotak may charge prepayment penalties depending on the loan terms. Check with the bank for current policies.

Q3: What documents are needed for a Kotak car loan?
A: Typically requires proof of income, address, identity, and car details. Exact requirements may vary.

Q4: Can I get 100% financing for a car?
A: Kotak may offer up to 100% financing on select models to eligible customers, though most loans cover 85-90% of the car's value.

Q5: How can I reduce my car loan EMI?
A: Options include making a larger down payment (reducing principal), negotiating a lower interest rate, or extending the loan tenure (though this increases total interest).