1. What is Credit Card EMI with GST?

Credit Card EMI (Equated Monthly Installment) allows you to convert large purchases into smaller monthly payments. In many countries like India, GST (Goods and Services Tax) is applicable on the interest portion of the EMI.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

And calculates GST on interest:

Where \( I \) is the total interest over the loan period.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in budgeting and financial planning. The GST component adds to the total cost of borrowing, so it's important to factor it in when comparing loan options.

4. Using the Calculator

Tips: Enter the principal amount, annual interest rate (APR), loan tenure in months, and GST rate (default is 18% for India). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why is GST charged on EMI interest?
A: GST is a consumption tax applied to financial services, including the interest portion of loans and EMIs.

Q2: How does tenure affect EMI and GST?
A: Longer tenures reduce EMI but increase total interest and GST paid. Shorter tenures have higher EMIs but lower total cost.

Q3: Is GST rate the same for all credit cards?
A: GST rates are set by government and apply uniformly, but check with your bank as rates may change over time.

Q4: Can I prepay my EMI to reduce GST?
A: Prepayment may reduce total interest and thus GST, but some banks charge prepayment penalties.

Q5: How accurate is this calculator?
A: It provides a close estimate, but actual EMI may vary slightly due to bank rounding practices or additional fees.