1. What is EMI Calculation?

The EMI (Equated Monthly Installment) calculation helps you determine the monthly payment amount for your Kotak credit card purchases converted to EMI. It considers the principal amount, interest rate, and loan tenure.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula calculates the fixed payment amount the borrower must pay each month to clear the loan over the specified tenure.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, comparing different loan options, and ensuring the monthly payment fits your budget before converting purchases to EMI.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate (APR) in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical APR for Kotak credit card EMI?
A: Kotak credit card EMI interest rates typically range from 14% to 36% APR depending on the offer and tenure.

Q2: Are there any processing fees for EMI conversion?
A: Kotak may charge a processing fee (usually 0-3% of the principal amount) for converting purchases to EMI.

Q3: Can I prepay my Kotak credit card EMI?
A: Yes, but prepayment charges may apply (usually 2-5% of the outstanding principal).

Q4: How does EMI affect my credit limit?
A: The EMI amount will block your credit limit proportionally each month until fully paid.

Q5: Is GST applicable on EMI interest?
A: Yes, GST at 18% is applicable on the processing fee and interest component of EMI.