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. For Kotak Bank personal loans, EMI payments include both principal and interest components.

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 over its term with interest.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan their finances, and compare different loan options before committing to a personal loan from Kotak Bank.

4. Using the Calculator

Tips: Enter the principal amount in Rs, annual interest rate (as offered by Kotak Bank), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Kotak Bank's current personal loan interest rate?
A: Kotak Bank's personal loan interest rates typically range from 10.99% to 24% per annum, depending on credit profile and other factors.

Q2: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: Are there any prepayment charges on Kotak personal loans?
A: Kotak Bank may charge 0-5% prepayment penalty depending on loan terms and prepayment timing.

Q4: What factors affect EMI amount?
A: Principal amount, interest rate, and loan tenure are the three key factors determining EMI.

Q5: Can I change EMI during loan tenure?
A: EMI is generally fixed, but you can request to change tenure (subject to terms) which would adjust EMI.