Kotak Mahindra Bank Personal Loan: There are times in life when we need a big amount at once maybe for building a house, funding a wedding, higher education, or even clearing old debts. In such moments, a personal loan feels like a lifeline. And among private banks, Kotak Mahindra Bank is one of the trusted names for giving large personal loans quickly. Now the question is if you take a ₹25 lakh personal loan for 10 years, how much will your EMI be? And how much extra will you end up paying in interest? Let’s break it down in a simple way.
Interest Rate in Kotak Mahindra Bank
Kotak Mahindra Bank offers personal loans at interest rates ranging between 10.99% to 24% per annum, depending on your income, CIBIL score, and repayment capacity. For our calculation, let’s assume an average interest rate of 11% per annum.
₹25 Lakh Loan EMI Calculation for 10 Years
Here’s how your EMI will look if you borrow ₹25 lakh for 10 years at 11% interest:
| Loan Amount | Tenure | Interest Rate | EMI (Per Month) | Total Interest | Total Payment |
|---|---|---|---|---|---|
| ₹25,00,000 | 10 Years (120 months) | 11% | ₹34,412 | ₹16,29,440 | ₹41,29,440 |
So, every month you will pay around ₹34,412 as EMI. By the end of 10 years, you will have paid a total of ₹41.29 lakh, out of which about ₹16.29 lakh is just interest.
A Real-Life Example
Take the case of Sameer, a 35-year-old IT professional. He took a personal loan of ₹25 lakh from Kotak Mahindra Bank for 10 years to build his dream home. His monthly salary is around ₹1.2 lakh, so the EMI of ₹34,412 was affordable for him. Though the interest looked big at first, the comfort of long tenure gave him flexibility and peace of mind.
On the other hand, his colleague Pooja decided to go for a shorter tenure of 7 years. Her EMI was heavier, but she saved almost ₹5 lakh in total interest. This shows that the choice of tenure makes a big difference a longer tenure gives comfort, but a shorter one saves you money.
Conclusion
If you take a ₹25 lakh personal loan from Kotak Mahindra Bank for 10 years at 11% interest, your monthly EMI will be around ₹34,412. In total, you’ll repay ₹41.29 lakh, which means over ₹16 lakh will go as interest. So before applying, think carefully about your income, EMI comfort level, and whether you want to choose a long or short tenure.
Disclaimer: This article is only for educational and general knowledge purposes. Actual interest rates, processing fees, and EMI depend on Kotak Mahindra Bank’s policies and your personal financial profile. Please confirm the latest details with the bank before applying.
