1. What is EMI?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. For Airtel Axis Bank credit card purchases, EMI allows you to convert large purchases into manageable monthly payments.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (APR/12)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Explanation: The formula accounts for compound interest over the loan period, spreading both principal and interest equally across all payments.

3. About Airtel Axis Credit Card

Details: The Airtel Axis Bank Credit Card offers special EMI options for purchases with competitive interest rates (typically starting from 1.75% monthly). This calculator helps you plan your EMI payments before making purchases.

4. Using the Calculator

Tips: Enter purchase amount in INR, the applicable APR (annual percentage rate), and select your preferred repayment tenure in months. The default APR of 1.75% is typical for Airtel Axis Bank credit card EMI conversions.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum purchase amount for EMI conversion?
A: Typically ₹2,500 or more, but check with Axis Bank for current terms.

Q2: Are there any processing fees for EMI conversion?
A: Axis Bank may charge a nominal processing fee (usually 1% of principal or ₹199, whichever is higher).

Q3: Can I prepay my EMI?
A: Yes, but prepayment charges may apply (usually 3% of outstanding principal).

Q4: Does EMI affect credit score?
A: Yes, timely EMI payments improve your score, while missed payments negatively impact it.

Q5: How is interest calculated for EMI?
A: Interest is calculated monthly on the reducing balance method.