1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month for a specified number of months to repay a loan. For credit cards, EMI options convert large purchases into manageable monthly payments.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula accounts for both principal and interest components of the loan, with interest being higher in initial payments.

3. Kotak Bank Credit Card EMI Features

Details: Kotak Bank offers competitive EMI conversion options on credit cards, comparable to ICICI Bank, with flexible tenures from 3-24 months and attractive interest rates.

4. Using the Calculator

Tips: Enter the principal amount (purchase value), annual interest rate offered by Kotak Bank, and desired tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does Kotak Bank EMI compare to ICICI?
A: Kotak Bank offers similar EMI options to ICICI, with competitive interest rates and flexible tenures. The exact terms depend on your credit profile.

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

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

Q4: What's the minimum amount for EMI conversion?
A: Typically Rs. 2,500-5,000 minimum purchase amount for EMI conversion.

Q5: How is interest calculated for EMIs?
A: Interest is calculated monthly on the reducing balance, with each EMI payment including both principal and interest components.