1. What is EMI?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. For HDFC credit cards, EMI allows you to convert large purchases into smaller monthly payments with interest.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (₹)
• \( R \) — Monthly interest rate (APR/12)
• \( N \) — Loan tenure in months

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

3. Importance of EMI Calculation

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

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the typical APR for HDFC credit card EMI?
A: HDFC credit card EMI interest rates typically range from 12% to 36% APR depending on the product and tenure.

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

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

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

Q5: Is EMI better than paying minimum amount due?
A: EMI has fixed tenure and interest rate, while revolving credit (minimum payments) typically has higher interest and no fixed repayment period.