1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month for a specified number of months to repay a loan. For Axis Bank credit cards in Malaysia, 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 (MYR)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that will completely repay the loan over the specified tenure, including interest.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, ensuring you can comfortably repay your Axis Bank credit card purchases without straining your monthly budget.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for Axis Bank credit cards in Malaysia?
A: Interest rates typically range from 15% to 18% per annum, but check your card's terms as rates may vary.

Q2: Are there any processing fees for EMI conversion?
A: Axis Bank may charge a processing fee (usually 1-3% of the principal) for converting purchases to EMI.

Q3: Can I prepay my EMI loan?
A: Yes, but prepayment charges may apply. Check with Axis Bank for current prepayment policies.

Q4: How does EMI affect my credit score?
A: Timely EMI payments can improve your score, while missed payments can negatively impact it.

Q5: Is the interest rate fixed for the entire tenure?
A: Yes, the rate is fixed at the time of EMI conversion and remains constant throughout the tenure.