1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month for a loan. For AU Small Finance Bank credit cards, this includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (Rs)
• \( R \) — Monthly interest rate (annual rate / 12, as decimal)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that would pay off the loan over the specified period with interest.

3. Understanding Your EMI Calculation

Details: Your EMI consists of both principal repayment and interest. Early in the loan term, a larger portion goes toward interest, while later payments have a higher principal component.

4. Using the Calculator

Tips: Enter the principal amount in Rs, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is AU credit card interest calculated?
A: Interest is calculated monthly on the outstanding balance at the monthly rate (annual rate/12).

Q2: Can I reduce my EMI amount?
A: Yes, by either negotiating a lower interest rate or extending the loan tenure (though this increases total interest paid).

Q3: Are there prepayment charges on AU credit card loans?
A: Check with AU Bank as policies may vary. Some loans allow partial prepayment with minimal charges.

Q4: What happens if I miss an EMI payment?
A: Late payments typically incur penalties and may affect your credit score. Contact AU Bank immediately if you anticipate payment difficulty.

Q5: How accurate is this calculator?
A: This provides a close estimate, but actual EMI may vary slightly due to rounding or specific bank policies.