1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month until the loan is fully paid off. It includes both principal and interest components.

2. How EMI Calculation Works

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (₹)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that would pay off the loan over the specified term, accounting for compound interest.

3. About Axis Bank Credit Card Loans

Details: Axis Bank offers credit card loans similar to HDFC Bank, with competitive interest rates and flexible repayment tenures. This calculator helps you compare and plan your repayments.

4. Using the Calculator

Tips: Enter the loan amount in rupees, annual interest rate (without the % sign), and loan tenure in months. The calculator will show your EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: How does Axis Bank's EMI compare to HDFC?
A: Both banks offer competitive rates. Use this calculator to compare EMI amounts for similar loan terms.

Q2: What is a typical interest rate for credit card loans?
A: Rates typically range from 12% to 24% per annum, depending on credit score and other factors.

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

Q4: How does tenure affect my EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures have higher EMIs but lower total interest.

Q5: Are there any hidden charges?
A: There may be processing fees or other charges. Always read the loan agreement carefully before signing.