1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month for a loan. It includes 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 / 12 / 100)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that would pay off the loan over the specified period with the given interest rate.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan their finances, and compare different loan options.

4. Using the Calculator

Tips: Enter the principal amount in Rs, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

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

Q2: How does prepayment affect EMI?
A: Prepayment reduces principal, which can either reduce EMI or loan tenure. Some banks may charge prepayment penalties.

Q3: What are Kotak Mahindra Bank's current personal loan rates?
A: Rates vary based on credit profile and other factors. Check the bank's website or branch for current rates.

Q4: Are there other charges besides interest?
A: Yes, there may be processing fees, prepayment charges, and late payment fees. These are not included in EMI calculation.

Q5: Can I change my EMI during the loan tenure?
A: Generally, EMI remains fixed for fixed-rate loans. Some banks offer EMI holidays or restructuring options in special cases.