1. What is EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines your fixed monthly payment for repaying credit card debt used for car purchases through HDFC Bank. 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 (INR)
• \( R \) — Monthly interest rate (APR/12)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Explanation: The formula calculates the fixed payment amount that includes both principal repayment and interest charges each month.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in budgeting for car purchases using credit card debt, comparing loan options, and assessing affordability before committing to a purchase.

4. Using the Calculator

Tips: Enter 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 typical APR for HDFC credit card car loans?
A: APR typically ranges from 14% to 36% depending on card type and customer profile.

Q2: How does tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: Are there prepayment charges?
A: HDFC may charge 2-4% of outstanding amount for credit card loan prepayments.

Q4: What's better - credit card EMI or car loan?
A: Car loans usually have lower interest rates but credit card EMIs offer convenience for smaller amounts.

Q5: Can I change EMI tenure later?
A: Generally not with credit card EMIs, unlike regular loans which may allow restructuring.