Kotak Mahindra Bank offers personal loans ranging from Rs. 50,000 to Rs. 15 lakh at an attractive interest rate starting as low as 10.99% p.a. The Kotak Mahindra Bank EMI calculator helps you to calculate your monthly personal loan payouts even before you apply for a loan so that you can plan your finances better. In the following sections, key aspects of the bank’s personal loan EMI such as method of calculation, charges levied on non-payment of EMI, factors affecting the EMI amount, ways to make EMI payments, etc. are discussed in detail.
Table of Contents:
- Kotak Mahindra Personal Loan EMI Calculator
- How does an EMI Calculator Function?
- Personal Loan EMI Calculation Formula
- Kotak Mahindra Personal Loan EMI Calculation
- Flat Balance v/s Reducing Balance Interest Rate
- How to pay Kotak Mahindra Personal Loan EMI
- Cheque Bounce Charges and Penal Interest Charges
- Factors Affecting Kotak Mahindra Personal Loan EMI
- Benefits of Using EMI Calculator
- FAQs
Kotak Mahindra Bank Personal Loan EMI Calculator
EMI or Equated Monthly Installment is the amount that a borrower needs to pay every month to a bank or a non-banking financial company (NBFC) in order to repay a loan. Kotak Mahindra Bank’s personal loan EMI calculator is a free to use tool that enables you to know the cost of the loan even before you apply for it and this helps in better management of finances. Different combinations of these loan parameters such as can be used to arrive at the most suitable EMI for you unique situation.
How does an EMI Calculator Function?
An EMI calculator functions on the basis of following 3 parameters:
- Loan Amount: Loan Amount refers to the loan principal amount that you borrow from Kotak Mahindra Bank. Usually, a higher amount leads to higher EMI payouts. Kotak Mahindra Bank offers personal loans ranging between Rs. 50,000 to Rs. 15 lakh.
- Loan Tenure: It is the period over which you can complete the loan repayment. The repayment tenure for Kotak Mahindra personal loan ranges between 12 to 60 months. A shorter repayment tenure usually results in higher EMI payouts. However, it enables you to save on the total interest payout of the loan.
- Interest Rate: The interest rate on Kotak Mahindra Bank personal loans starts as low as 10.99% p.a. A higher interest rate usually results in higher EMI payouts over the loan tenure as long as the tenure and loan amount are kept unchanged.
Personal Loan EMI Calculation Formula
The method of calculating interest opted by the bank- whether the bank uses the flat rate method or the reducing balance method, determines the formula used to calculate personal loans EMIs. The 2 methods of EMI calculation are explained below:
- Flat Rate Method: When interest is calculated using the flat rate method, the EMI amount remains the same throughout the loan tenure. This is because interest is charged on the entire loan principal amount borrowed by the applicant. Thus, as per this method, the EMI calculation formula is:
EMI by Flat Rate Method = (Principal + Interest)/ Loan Tenure in Months
For example: Let’s assume Mr. P took a loan of Rs. 30 lakh at a flat rate of interest of 20% for a period of 24 months.
Interest for year 1 = 20% per annum of Principal = 20% of Rs. 30 lakh = Rs. 6 lakh
Interest for year 2 i.e. 13th to 24th month = Rs. 6 lakh
Total interest payable over the loan tenure = Rs. 6 lakh + Rs. 6 lakh = Rs. 12 lakh
Monthly EMI payouts for Mr. P= (Rs. 30 lakh + Rs. 12 lakh)/24 = Rs. 1.75 lakh
- Reducing Balance Method: As per the reducing balance method, the EMI amount keeps decreasing over the tenure of the loan as interest is charged on the outstanding loan principal amount (which keeps reducing as the loan is paid off) rather than on the entire loan amount borrowed initially. Thus, this method helps you to save on the total interest payable. According to this method, the EMI calculation formula is:
EMI calculation by Reducing Balance Method = [P x (R/100) x {1+(R/100)}^N]/[{1+(R/100)}^(N-1)]
Where,
P refers to the principal/loan amount;
R refers to the rate of interest on a monthly basis i.e. annual interest rate/12;
N refers to the loan repayment tenure in months.
For instance: Mr. Q takes a loan of Rs. 30 lakh at a reducing balance interest rate of 20% p.a. for a period of 24 months.
Monthly interest rate = Annual interest rate/ 12 = 20/12 = 1.67% per month
Monthly EMI payout for Mr. B (using the reducing balance method) =
[3000000 x 0.0167 x (1+2)^24]/(1+2)^(24-1)] = Rs. 1.53 lakh
Kotak Mahindra Bank Personal Loan EMI Calculation
Kotak Mahindra Bank uses the reducing balance method to calculate the EMI payable on its personal loans. The following table gives EMI calculation for Kotak Mahindra Bank personal loans using different combinations of loan amount, repayment tenure and interest rate.
| Loan Amount (Rs.) | Interest Rate (p.a.) | Tenure (months) | EMI (Rs./month) |
| 50,000 | 11% | 12 | 4,419 |
| 2 lakh | 12% | 36 | 6,643 |
| 5 lakh | 14% | 24 | 24,006 |
| 10 lakh | 17% | 48 | 28,855 |
| 15 lakh | 20% | 60 | 39,741 |
Comparison of EMI Calculation Methods: Flat Interest Rate v/s Reducing Balance Interest Rate
The following table compares the difference in EMI payable when using the flat interest rate method v/s when the reducing balance method is used for varying loan amounts, tenures and interest rates:
| Loan Amount (Rs.) | Loan Tenure (months) | Interest Rate (p.a.) | EMI using Flat Rate method (Rs.) | EMI using Reducing Balance method (Rs.) |
| 50,000 | 12 | 11% | 4,625 | 4,419 |
| 3 lakh | 24 | 13% | 15,750 | 14,263 |
| 5 lakh | 36 | 15% | 20,139 | 17,333 |
| 10 lakh | 48 | 17% | 35,000 | 28,855 |
| 15 lakh | 60 | 20% | 50,000 | 39,741 |
How to pay Kotak Mahindra Personal Loan EMI
Customers can pay their Kotak Mahindra Bank personal loan EMIs via the following modes of payment:
- ECS (Electronic Clearing Service) facility
- Post-dated cheques (PDCs)
- Through Kotak Mahindra Bank Internet Banking
- Through Internet Banking of different bank (using Billdesk)
Charges levied on Non Payment of EMI – Cheque Bounce Charges and Penal Interest Charges
In case EMI payments are not made on time, Kotak Mahindra Bank levies some specific charges. These penal charges include:
| Payment Dishonor Charges | Rs. 750 per instance (inclusive of GST and other applicable statutory levies) |
| Overdue Interest | 3% p.m. compounded monthly on the Amount due but unpaid from the date the amount becomes due till the date of actual payment |
Factors Affecting Kotak Mahindra Personal Loan EMI
Given below are the key factors which affect Kotak Mahindra personal loan EMI payouts:
- Loan Amount: Loan amount/loan principal is the amount of money that you borrow from the lender. Usually a greater loan amount results in a higher EMI payout.
- Interest Rate: It refers to the rate of interest charged by the lender on the loan amount. Usually a higher interest rate results in a higher EMI payout.
- Loan Tenure: It is the time period over which the loan can be repaid. Generally, longer repayment tenure results in lower individual EMI payouts. However, this also lead to greater overall interest payout.
- Interest Calculation Method: The method used to calculate personal loan EMIs also affects the amount of interest payable. EMIs calculated using the reducing balance method are slightly lower as compared to EMIs calculated using the flat rate method.
Benefits of Using an EMI Calculator
The following are some of the key advantages of using an EMI calculator:
- EMI calculator lets you assess the monthly EMI payout even before you apply for a loan. This enables you to plan your finances in a better way and helps you to choose a loan amount and tenure which suits your budget.
- The online personal loan EMI calculator also helps you save a lot of time as you no longer have to do tedious EMI calculations by hand. An EMI calculator gives you instant results once you specify the loan amount, interest rate and tenure.
- EMI calculator can be used anytime and anywhere without paying any charges. Additionally, using this online tool is free of charge as there is no limit to the number of times that you can use the calculator.
- An EMI calculator is more accurate and reliable when compared to manual calculations as computerized algorithms give error-free results.
FAQs
Q1. Is there an option to autopay my Kotak Mahindra Bank personal loan EMI?
Yes, customers can choose to autopay their personal loan EMIs by opting for the ECS facility.
Q2. Does the EMI calculator show the prepayment charges?
No, prepayment charges are not shown by the EMI calculator. However, customers can check the prepayment charges in the loan agreement provided by the lender.
Q3. What is floating rate EMI calculation?
Floating interest rate refer to rates that vary during the loan tenure. For instance, the repo rate influences loans that are based on the Repo Linked Lending Rate (RLLR). In case of a RLLR-linked loan, whenever RBI changes the repo rate, a similar change is reflected in the loan interest rate. Currently the floating interest rate mechanism is not applicable to personal loans offered by Kotak Mahindra Bank.
Q4. Can Kotak Mahindra Bank personal loan EMIs be paid in cash?
No, you cannot pay Kotak Mahindra personal loan EMIs in cash. You can however, use a cheque/draft submitted at the nearby Kotak Mahindra Bank to repay your loan.
Q5. Is there a maximum value that I can enter for the loan amount and loan tenure in the Kotak Mahindra Bank personal loan EMI calculator?
Paisabazaar’s Kotak Mahindra Bank personal loan EMI calculator lets you calculate EMIs for personal loans up to Rs. 25 lakh and for tenures of up to 60 months. The maximum interest rate supported by this calculator is 25% p.a.
Q6. How to use the EMI calculator?
The following steps need to be followed to use Paisabazaar’s personal loan EMI calculator:
Step1: Go to Paisabazaar’s personal loan EMI calculator page.
Step2: Enter the loan amount, tenure and interest rate.
Step3: The EMI amount is instantly displayed by the calculator on the right hand side of the page.
Q7. How to arrive at the right EMI amount?
Customers can make use of the EMI calculator to check varying combinations of loan amount, interest rate and tenure to arrive at an EMI amount that suits your budget. All your monthly expenditure and outstanding debt should be taken into account to finalize a suitable EMI amount that can be easily paid off without disturbing your financial stability.
Q8. Does Kotak Mahindra Bank levy any additional charges in case I wish to change my loan repayment instrument?
Yes, in case you wish to change your loan repayment instrument (such as post-dated cheque of different bank/new ECS mandate), you will be required to pay the swap charges. The swap charges are Rs. 500 (GST and other applicable statutory levies are additional).
Q9. Is it possible to reschedule my EMI?
Yes, you can reschedule your personal loan EMI. Currently Kotak Mahindra Bank offers EMI payment dates of 5th to 10th of every month. However, rescheduling of EMI will result in ECS/PDC swap as well as rescheduling charges as specified by the bank.
