1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. For Kotak Bank credit cards, this includes both principal and interest components.

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 divided by 12, in decimal)
• \( N \) — Loan tenure in months

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

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, budgeting, and choosing the right loan tenure that fits your monthly expenses.

4. Using the Calculator

Tips: Enter principal amount in Rs, annual interest rate in percentage, 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 Bank credit cards?
A: Interest rates typically range between 24% to 42% per annum, depending on the card type and customer profile.

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

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

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

Q5: Can I change my EMI tenure after conversion?
A: Generally no, the tenure is fixed at the time of EMI conversion.