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 IndusInd Bank credit cards, this allows you to convert large purchases into manageable monthly payments.

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, comparing different loan options, and ensuring the repayment fits your monthly budget before committing to a credit card payment plan.

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 interest rate for IndusInd credit card EMI?
A: Interest rates vary but typically range from 12% to 36% APR depending on the card type and tenure.

Q2: Are there any processing fees for EMI conversion?
A: Yes, IndusInd Bank may charge a processing fee (usually 1-3% of principal) for converting purchases to EMI.

Q3: Can I prepay my EMI?
A: Prepayment options vary by plan, but often involve foreclosure charges of 2-5% of outstanding principal.

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

Q5: Can I convert any purchase to EMI?
A: Most purchases above ₹2,500-5,000 can be converted to EMI, subject to bank approval and merchant participation.