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 personal loans, EMIs are calculated using reducing balance method.

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 with interest over the specified tenure.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan their finances, and compare different loan options before borrowing.

4. Using the Calculator

Tips: Enter the 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 Kotak Bank's current personal loan interest rate?
A: Interest rates typically range between 10.99% to 24% p.a., depending on credit profile and other factors.

Q2: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: Are there any prepayment charges?
A: Kotak Bank may charge 0-5% prepayment penalty depending on loan terms and prepayment timing.

Q4: What factors affect personal loan eligibility?
A: Income, credit score, employment history, existing debts, and relationship with the bank are key factors.

Q5: How can I reduce my EMI burden?
A: You can opt for longer tenure, improve credit score for better rates, or consider part-prepayments when possible.