1. What is EMI Calculation?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. For Kotak Mahindra Bank credit cards, this helps customers convert large purchases into affordable monthly payments.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (APR/12 as decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Explanation: The formula accounts for compound interest over the loan period to calculate fixed monthly payments that include both principal and interest components.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, budgeting, and comparing different credit card purchase options. It shows the true cost of converting purchases to installments.

4. Using the Calculator

Tips: Enter the principal amount (purchase value), annual interest rate (check your Kotak Mahindra credit card terms), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for Kotak Mahindra credit card EMI?
A: Interest rates vary but typically range from 12% to 36% APR depending on the card variant and promotional offers.

Q2: Are there any processing fees for EMI conversion?
A: Kotak Mahindra Bank may charge a processing fee (usually 1-2% of principal) for converting purchases to EMI.

Q3: Can I prepay my EMI?
A: Yes, but prepayment charges may apply. Check with the bank for current prepayment policies.

Q4: How does EMI affect credit score?
A: Timely EMI payments can improve your score, while defaults will negatively impact it.

Q5: Is GST applicable on EMI interest?
A: Yes, GST is applicable on the processing fee and interest components as per current regulations.