1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. For Axis 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 (INR)
• \( R \) — Monthly interest rate (APR/12 as decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

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

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, budgeting, and comparing different credit card purchase options. It ensures you can comfortably repay without straining your finances.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the typical APR for Axis credit cards?
A: Axis credit cards typically have APRs ranging from 24% to 48% per annum, depending on card type and customer profile.

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?
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 defaults will negatively impact it.

Q5: What if I miss an EMI payment?
A: Late payment fees (up to ₹1,000) and additional interest will apply, and it may negatively affect your credit score.