1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. For ICICI credit cards, this allows you to convert large purchases into manageable monthly payments with interest.

2. How Does the EMI 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 accounts for compound interest over the loan period, spreading both principal and interest equally across all payments.

3. Importance of EMI Calculation

Details: Calculating EMI helps you plan your finances by understanding the monthly commitment and total cost of credit card purchases converted to EMI.

4. Using the Calculator

Tips: Enter purchase 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 ICICI credit card's typical APR?
A: ICICI credit cards typically have APR ranging from 24% to 42% per annum, depending on card type and customer profile.

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

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

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

Q5: Is EMI better than minimum payment?
A: EMI has fixed tenure and interest, while minimum payment leads to revolving credit with typically higher interest costs.