1. What is No Cost EMI?

No Cost EMI is a payment option where you can purchase products by converting the total amount into equal monthly installments without any additional interest charges. Kotak Credit Card offers this facility on select products.

2. How Does the Calculator Work?

The calculator uses the simple EMI formula:

Where:

• \( P \) — Principal amount (INR)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Explanation: For no-cost EMI, the total amount is simply divided by the number of months in the tenure since there are no interest charges.

3. Importance of EMI Calculation

Details: Calculating your EMI helps in financial planning and ensures you can comfortably pay the installments without straining your monthly budget.

4. Using the Calculator

Tips: Enter the total purchase amount in INR and select your preferred repayment tenure (3-36 months typically). The calculator will show your fixed monthly payment amount.

5. Frequently Asked Questions (FAQ)

Q1: Is there really no cost in no-cost EMI?
A: While there's no explicit interest charge, some merchants may include processing fees or slightly higher product prices to compensate.

Q2: What is the minimum purchase amount for no-cost EMI?
A: Kotak typically requires a minimum purchase of ₹3,000-5,000 for no-cost EMI transactions.

Q3: Can I prepay my no-cost EMI?
A: Yes, but prepayment charges may apply. Check with Kotak for current policies.

Q4: Does this affect my credit score?
A: Yes, EMI transactions appear on your credit report and timely payments help build a good credit history.

Q5: Are all products eligible for no-cost EMI?
A: No, only select products from partner merchants are eligible. Check Kotak's current offers.