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 options allow 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 amount that includes both principal and interest components, ensuring the loan is paid off in full over the specified tenure.

3. Understanding HDFC Credit Card EMI

Details: HDFC Bank offers EMI conversion on credit card purchases, typically with interest rates ranging from 12% to 24% APR depending on the product and tenure.

4. Using the Calculator

Tips: Enter the principal amount (purchase value), annual interest rate (APR), and loan tenure in months. The calculator will show your EMI amount, total payment, and total interest payable.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum amount for EMI conversion in HDFC?
A: HDFC typically requires a minimum transaction amount of ₹2,500-₹5,000 for EMI conversion.

Q2: Are there processing fees for EMI conversion?
A: Yes, HDFC may charge a processing fee (usually 1-2% of the principal amount) for EMI conversion.

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

Q4: How does HDFC credit limit work with EMI?
A: The EMI amount is blocked from your credit limit and released gradually as you make payments.

Q5: Can I convert existing purchases to EMI later?
A: Yes, HDFC allows conversion of eligible past transactions to EMI within a specified period.