1. What is EMI?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. For credit cards, EMIs allow you to convert large purchases into smaller monthly payments.

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)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment

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

3. Understanding Credit Card EMIs

Details: Kotak credit cards typically offer EMI conversion options for purchases above ₹2,500. Interest rates vary based on tenure and promotional offers (often ranging from 12% to 36% APR).

4. Using the Calculator

Tips: Enter the principal amount (purchase value), annual interest rate (check your card's terms), and desired tenure in months. The calculator will show your monthly payment and total cost.

5. Frequently Asked Questions (FAQ)

Q1: How is Kotak credit card interest calculated?
A: Interest is calculated monthly on the reducing balance. The APR is divided by 12 to get the monthly rate.

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

Q3: Can I prepay my EMI?
A: Yes, but prepayment charges may apply (usually 2-4% of the outstanding principal).

Q4: What's the minimum tenure for Kotak credit card EMIs?
A: Minimum tenure is usually 3 months, with maximum up to 48 months depending on the purchase amount.

Q5: Does EMI affect credit score?
A: Timely EMI payments can help build credit history, while missed payments negatively impact your score.