Kotak Mahindra Bank Home Loan EMI Calculator

If you want to calculate Kotak Mahindra Bank Home Loan EMIs, you can make use of Magicbricks Home Loan EMI Calculator which is available online for free. Let us now understand how the EMI Calculator works with the help of an illustration. To use the calculator, you will have to fill in the loan, amount, tenure and interest rate. The interest rate remains the same (6.55% p.a.) for all loan amounts and tenures.

Kotak Mahindra Bank Home Loan EMI Calculation

Factors that Affect Kotak Mahindra Bank Home Loan EMIs

The prime factors that can impact the home loan EMIs of Kotak Mahindra Bank are:

1.  Fluctuations in Interest Rate: Many banks and NBFCs offer a home loan with an option of both floating as well as a fixed interest rate. Therefore, any revision by the RBI in these interest rates may have a positive or a negative impact on your home loan EMI. Also, this impact will be more significant if you have selected a floating interest rate as it changes as per the change in the base rate by RBI.

However, selecting a floating interest rate is not always a bad option as in the past few years RBI has not increased the base rate for floating interest rates to make the EMIs affordable.

2.  Change in Tenure: Even a minor change in the tenure of your home loan can drastically impact your EMIs. The basic rule is, the longer the tenure, the lower will be the EMIs and the shorter the tenure, the shorter would be the EMIs. However, one thing that most people ignore when choosing a longer tenure is that a longer tenure comes with higher interest payments that ultimately lead to an increase in the cost of your loan.

If you take a higher loan tenure, your EMIs will be lower but you will end up paying a huge loan amount. Therefore, it is important to choose a home loan tenure wisely as per your repayment ability and if you can afford higher EMIs, do go for a shorter home loan tenure.

3.  Home Loan Pre-Payment: Most banks and NBFCs allow the borrowers to prepay their home loan by just paying a minimum charge. Prepaying a home loan not only brings down the principal amount but also reduces the EMIs.

4.  Down Payment: If you plan to buy a house or a flat, you will have to make a down payment before you avail of a home loan as a financial institution finances only up to 90% of the property’s value. Therefore, the more down payment you make, the lower would be the loan amount that you need to avail and consequently, the lower would be the EMIs. The bank expects you to pay 10 to 20% as a down payment before you apply for a home loan but if you pay a higher down payment, it will reduce your burden in the future.

5.  Home Loan Balance Transfer: If you plan to transfer your existing home loan to another bank and NBFC, you may get an affordable EMI amount. The reason is that you will only transfer your existing home loan amount to another bank/NBFC only when you are getting a lower interest rate.

Therefore, when you transfer your home loan to another bank, there is a fresh paperwork process run by the bank and new EMI arrangements and terms and conditions are made. Also, you will have to pay a minimal processing fee if you transfer your existing home loan to another bank/NBFC.