1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over time, the loan is paid off in full.

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. About Kotak Mahindra Bank Personal Loans

Details: Kotak Mahindra Bank offers personal loans with competitive interest rates, flexible tenures from 12 to 60 months, and loan amounts up to Rs 40 lakhs. Interest rates typically range from 10.99% to 24% per annum.

4. Using the Calculator

Tips: Enter the loan amount in Rs, annual interest rate (without % sign), and loan tenure in months. The calculator will show your EMI, total repayment amount, and total interest payable.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my EMI amount?
A: EMI depends on three factors: loan amount, interest rate, and loan tenure. Higher loan amounts or rates increase EMI, while longer tenures reduce EMI.

Q2: How is interest calculated on Kotak personal loans?
A: Interest is calculated on a reducing balance basis, meaning you pay interest only on the outstanding principal.

Q3: Are there any prepayment charges?
A: Kotak may charge 0-5% prepayment penalty depending on loan tenure and prepayment timing. Check current policy before prepayment.

Q4: What documents are needed for a Kotak personal loan?
A: Typically requires identity proof, address proof, income documents, and bank statements.

Q5: Can I change my EMI after taking the loan?
A: EMI is generally fixed, but you can request to change tenure (may involve fees) or make partial prepayments to reduce EMI.