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. For Axis Bank credit cards, EMI options allow 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 as decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Explanation: The formula accounts for both principal and interest components of the loan, spread evenly over the repayment period.

3. Understanding EMI Calculation

Details: Axis Bank credit card EMIs typically range from 3-24 months with interest rates varying based on promotional offers, card type, and customer profile. The calculator helps you plan purchases by showing exact monthly obligations.

4. Using the Calculator

Tips: Enter the purchase amount as principal, the applicable APR (usually 12-36% for Axis Bank), and desired tenure. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum purchase amount for EMI conversion?
A: Axis Bank typically requires a minimum purchase of ₹2,500-₹5,000 for EMI conversion, depending on the offer.

Q2: Are there processing fees for EMI conversion?
A: Yes, Axis Bank may charge 0-3% of the principal amount as processing fees, depending on the offer.

Q3: Can I prepay my EMI?
A: Yes, but prepayment charges of 2-3% may apply. Check with Axis Bank for current policies.

Q4: How does EMI affect credit limit?
A: Your available credit limit reduces by the principal amount immediately, then increases slightly with each EMI payment.

Q5: Can I convert existing purchases to EMI?
A: Yes, Axis Bank allows conversion of recent purchases (usually within 30 days) to EMI through their app or customer care.