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, EMI options allow you to convert large purchases into manageable monthly payments.

2. How EMI Calculation Works

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, including both principal and interest components.

3. About Kotak Mahindra Credit Card EMI

Details: Kotak Mahindra Bank offers EMI conversion options on credit card purchases, allowing cardholders to pay for purchases in fixed monthly installments rather than one lump sum.

4. Using the Calculator

Tips: Enter the principal amount (purchase value), annual interest rate (as offered by Kotak Mahindra Bank), and the tenure in months. The calculator will show your monthly EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What interest rates does Kotak Mahindra charge for EMI?
A: Interest rates vary (typically 12-24% p.a.) depending on the product, tenure, and promotional offers.

Q2: Are there any processing fees for EMI conversion?
A: Kotak Mahindra may charge a processing fee (usually 1-2% of principal) for EMI conversion.

Q3: Can I prepay my EMI?
A: Yes, but prepayment charges may apply. Check with the bank for current policies.

Q4: How does EMI affect credit limit?
A: Your available credit limit reduces by the principal amount until EMI is fully paid.

Q5: Can all purchases be converted to EMI?
A: Most retail purchases above a minimum amount (usually Rs. 2,500-5,000) can be converted, subject to bank approval.