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 manageable monthly payments.

2. How EMI Calculation Works

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 that includes both principal and interest components each month.

3. Understanding the Formula

Details: The formula accounts for compounding interest over the loan period. Early payments have a higher interest component, while later payments have more principal.

4. Using the Calculator

Tips: Enter the purchase amount as principal, HDFC's applicable APR (typically 14-36%), and desired tenure (3-60 months). The calculator shows EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What is HDFC's typical credit card APR?
A: HDFC credit card interest rates typically range from 14% to 36% APR depending on card type and customer profile.

Q2: Are there processing fees for EMI conversion?
A: Yes, HDFC usually charges 0-3% processing fee on the principal amount for EMI conversion.

Q3: Can I prepay my EMI?
A: Yes, but prepayment charges may apply (usually 2-3% 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 existing purchases to EMI?
A: Yes, HDFC allows conversion of recent purchases (usually within 30 days) to EMI.