How Does Kotak Mahindra Personal Loan Interest Rate Determine Your EMI amount and Savings?

When you borrow from someone, you ought to repay it. In the case of a personal loan from banks or NBFCs, you need to repay the loan amount with the interest being charged on it within a fixed tenure. Lenders provide the option of paying this loan amount in equal installments which is known as the EMI amount. That’s where the role of the Kotak Mahindra Personal Loan Interest Rate becomes crucial. When you choose the interest rate on your loan from any lender, you should know that it directly affects your repayment amount.

Every day several people opt for a personal loan without keeping this important factor in their mind. When they do this, they often end up choosing a loan amount beyond their repayment capacity and find it difficult to repay. Such people often end up as defaulters. Other than impacting your EMI amount, the personal loan interest rate can also determine the saving you can do when choosing the balance transfer facility. In this article, we will be showing you how Kotak Mahindra Personal Loan Interest Rate affects your EMI. Apart from this, we will also be showing how Kotak Mahindra Personal Loan EMI Calculator helps you in finding savings. Keep reading to know more!

How to Choose Suitable Kotak Mahindra Personal Loan Interest Rate?

One of the important things to choose when going for a personal loan is the interest rate charged by the lender on your loan amount. The first thing you need to know is that the Kotak Mahindra Personal Loan Interest Rate starts from 10.75% per annum, and depends on several factors such as the applicant's age, monthly income, employment type, existing obligations, employment history, location, and credit score. It means that it can be different for one individual to another.

Now let’s understand how to choose a suitable interest rate for yourself. Suppose you want to opt for a personal loan of INR 4 lakh for 5 years. There are two interest rate options for you - 12.50% per annum and 17.99% per annum.

On choosing the 12.50% per annum, the EMI amount will be INR 8,999, while the interest outgo will be INR 1,39,951.

On the other hand, if you choose 17.99% per annum, he would be paying INR 10,155 per month as the EMI amount and INR 2,09,312 as the interest amount over the 5-year tenure.

Note: All of these calculations can be done with the help of the Kotak Mahindra Bank Personal Loan EMI Calculator without any worry.

So, from the above example, you can see that on choosing a higher rate, the EMI amount, as well as interest outgo, is going higher. Let’s say you have a monthly income of INR 25,000 per month. With this income, it would not be wise to go for the interest rate of 17.99% per annum instead of 12.50% per annum. As we said earlier also that you should always choose the interest rate according to your monthly income. An individual with a higher income can easily choose a higher loan amount as he or she can set off a higher portion towards the repayment.

Role of Kotak Mahindra Personal Loan Interest Rate in Balance Transfer Facility

If you want to transfer your outstanding principal balance to Kotak Mahindra from some other lender so that you can enjoy the lower rates, you can do it too with the help of the Balance Transfer facility. When you transfer your balance at a lower Kotak Mahindra Personal Loan Interest Rate, your EMI will automatically go down. Other than this, you will also need to pay a lower interest amount over the period. You can have an estimate about the savings with the help of the EMI Calculator.