1. What is EMI Calculation?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. This calculator helps determine the EMI for repaying credit card debt through a personal loan.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that would pay off the loan with interest over the specified term.

3. Importance of EMI Calculation

Details: Knowing your EMI helps in financial planning, comparing loan offers, and ensuring the monthly payment fits your budget before committing to a loan.

4. Using the Calculator

Tips: Enter the principal amount, annual interest rate, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is EMI better than paying credit card interest?
A: Personal loans typically have lower interest rates than credit cards, so converting credit card debt to an EMI can save money.

Q2: What factors affect EMI amount?
A: EMI depends on loan amount, interest rate, and tenure. Higher amount/rate increases EMI, while longer tenure reduces it.

Q3: How does prepayment affect EMI?
A: Prepayment reduces principal, which can either lower EMI or shorten loan term depending on agreement with lender.

Q4: Are there other charges besides EMI?
A: Some loans have processing fees, prepayment charges, or late payment penalties not reflected in EMI calculation.

Q5: Can I change EMI during loan term?
A: Generally fixed, but some lenders offer EMI holidays or restructuring options in special circumstances.