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 Loan Against Property via Credit Card, EMIs are used to repay both principal and interest each month.

2. How EMI is Calculated

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

Example: For a Rs 10,00,000 loan at 12% annual interest for 5 years (60 months):

• Monthly rate (R) = 12%/12 = 1% = 0.01
• EMI = [10,00,000 × 0.01 × (1+0.01)^60] / [(1+0.01)^60 - 1] = Rs 22,244

3. About Kotak LAP Credit Card

Details: Kotak Loan Against Property (LAP) via Credit Card allows you to leverage your property's value to get a credit limit on your card. The EMI calculation helps plan repayments for this facility.

4. Using the Calculator

Tips: Enter principal amount in Rs, annual interest rate in percentage, and tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for Kotak LAP?
A: Interest rates typically range between 10.5% to 16% p.a. depending on credit profile and loan parameters.

Q2: Are there any prepayment charges?
A: Kotak may charge 2-4% for prepayment, but terms vary. Check your loan agreement for specifics.

Q3: Can I change my EMI amount later?
A: Generally fixed for the tenure, but you may request restructuring with possible charges.

Q4: How does credit card LAP differ from regular LAP?
A: Credit card LAP provides revolving credit access up to approved limit, while regular LAP is term loan.

Q5: Is EMI amount fixed for entire tenure?
A: Yes, EMI remains constant unless interest rates are revised (in floating rate loans).