1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. It includes both principal and interest components.

2. How Does the EMI Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Loan principal amount (KES)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan term in months

Explanation: The formula calculates the fixed monthly payment that would pay off the loan over its term with a fixed interest rate.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, compare loan offers, and plan their finances accordingly.

4. Using the Calculator

Tips: Enter loan amount in KES, annual interest rate in percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is KCB's typical interest rate range?
A: KCB personal loan rates typically range from 12% to 18% per annum, depending on loan product and customer profile.

Q2: Are there other charges besides interest?
A: KCB may charge processing fees (usually 1-3% of loan amount), insurance, and other administrative fees.

Q3: Can I prepay my KCB loan?
A: Yes, but prepayment penalties may apply depending on the loan terms and conditions.

Q4: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q5: What if I miss an EMI payment?
A: Late payments attract penalties and may negatively affect your credit score.