1. What is the EMI Calculation?

The EMI (Equated Monthly Installment) calculation helps you determine the fixed payment amount you need to make each month towards your Axis Bank credit card purchase converted to EMI. It includes both principal and interest components.

2. How Does the Calculator Work?

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 period with the given interest rate.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, budgeting, and comparing different loan/credit card EMI options before making a purchase decision.

4. Using the Calculator

Tips: Enter the principal amount (purchase value), annual interest rate offered by Axis Bank, and the 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 card EMI?
A: Interest rates vary but typically range between 12% to 24% per annum depending on the product and tenure.

Q2: Are there any processing fees for credit card EMI conversion?
A: Axis Bank may charge a processing fee (usually 1-2% of the principal amount) for converting purchases to EMI.

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

Q4: How does EMI affect my credit limit?
A: The principal amount is blocked from your available credit limit and gets released as you pay each EMI.

Q5: Is GST applicable on EMI interest?
A: Yes, GST is applicable on the processing fee and interest component of the EMI.