1. What is No Cost EMI?

No Cost EMI is a payment option where you can convert your Kotak credit card bill into monthly installments without paying any additional interest charges. The total amount is divided equally over the chosen tenure.

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: Since this is a no-cost EMI, the total amount is simply divided by the number of months without any interest component.

3. Importance of EMI Calculation

Details: Calculating your EMI helps in financial planning and budgeting. It lets you know exactly how much will be deducted from your credit limit each month.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Is there really no cost for this EMI?
A: Yes, Kotak absorbs the interest cost as part of merchant agreements, so you only pay the principal amount divided over months.

Q2: What is the minimum and maximum tenure available?
A: Typically ranges from 3 to 24 months, depending on the merchant and purchase amount.

Q3: Does this affect my credit score?
A: Converting to EMI doesn't directly affect your score, but your credit utilization will reflect the full EMI amount.

Q4: Can I prepay the EMI?
A: Most no-cost EMIs allow prepayment, but check with Kotak as some may have prepayment conditions.

Q5: Are all purchases eligible for no-cost EMI?
A: Only purchases from participating merchants and above a minimum amount (usually ₹3000) are eligible.