Managing large purchases can be challenging, especially when unexpected expenses arise. Kotak Mahindra Bank offers a helpful solution by allowing credit card users to convert their transactions into EMIs (Equated Monthly Installments). This option helps break down hefty payments into smaller, more manageable portions.
Two Ways to Convert Kotak Credit Card Payments into EMIs
Kotak provides customers with two convenient methods to convert their payments:
- Instant EMI at the Time of Purchase
This feature is available for both online and in-store purchases above ₹2,500. Without any documentation or processing fees, customers can instantly opt for EMI at checkout.
- In-store: Inform the merchant before payment.
- Online: Select the “Kotak Bank EMI” option during the checkout process and choose your preferred tenure.
- In-store: Inform the merchant before payment.
- Post-Purchase EMI Conversion
If a purchase has already been made, it can still be converted into EMI using the following steps:
- Log in to Kotak Net Banking or Mobile Banking.
- Navigate to the credit card section.
- Click on ‘Outstanding to EMI.’
- Choose the specific transaction.
- Review available tenure and interest rates.
- Submit your request.
- Log in to Kotak Net Banking or Mobile Banking.
This method applies to a wide range of expenses, including electronics, travel bookings, and household goods.
Flexible Repayment Options
Kotak allows customers to select repayment tenures ranging from 3 to 48 months. The interest rates vary based on the selected duration. For instance, converting a ₹5,000 transaction over 3 months may incur an interest of ₹600, translating to approximately 3.10% per month.
Understanding the Interest Rates
Interest rates for EMI conversions typically fall between 3.10% and 3.70% per month, depending on the card type and tenure. This equates to an annual rate of around 37.20% to 44.40%. Customers are encouraged to check the latest figures on Kotak Mahindra Bank’s official website for the most accurate and current details.
No Foreclosure Charges
Another benefit of Kotak’s EMI facility is the absence of foreclosure charges. Customers can repay the outstanding balance in full before the chosen tenure ends without incurring any penalties.
Choosing to convert large Kotak credit card purchases into EMIs can ease financial pressure and allow for better budgeting. Whether you’re shopping for appliances, booking travel, or covering emergency expenses, this option provides the flexibility and convenience to manage your finances more effectively.
