1. What is EMI Calculation?

EMI (Equated Monthly Installment) calculation helps you determine the monthly repayment amount when converting your HDFC credit card purchases into EMIs. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal amount (₹)
• \( R \) — Monthly interest rate (annual rate / 12 / 100)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that includes both principal repayment and interest charges.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, comparing different loan options, and ensuring the installment fits your monthly budget.

4. Using the Calculator

Tips: Enter the principal amount (purchase amount), annual interest rate offered by HDFC Bank, and the tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for HDFC credit card EMIs?
A: Interest rates vary but typically range between 12% to 24% per annum depending on the product and tenure.

Q2: Are there any processing fees for credit card EMIs?
A: HDFC may charge a processing fee (usually 1-2% of the principal amount) which is not included in this calculation.

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

Q4: How does EMI affect my credit limit?
A: The principal amount is blocked from your available credit limit and gets released as you make EMI payments.

Q5: Is GST applicable on EMI interest?
A: Yes, GST is applicable on the processing fee and interest component as per current regulations.