1. What is the EMI Calculation?

The EMI (Equated Monthly Installment) calculation helps you determine the monthly payment amount for your HDFC credit card purchases converted to EMI. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula calculates the fixed payment amount the borrower must pay each month to gradually repay the loan over the specified tenure.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, comparing different loan options, and ensuring the monthly payment fits within your budget before committing to a credit card EMI plan.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How is HDFC credit card EMI interest calculated?
A: Interest is calculated monthly on the reducing balance, with the rate depending on the EMI plan you choose (typically 12-24% p.a.).

Q2: Are there any additional charges for credit card EMI?
A: HDFC may charge processing fees (0-2%) and GST on the processing fee. Check the exact terms before conversion.

Q3: Can I prepay my credit card EMI?
A: Yes, but prepayment charges may apply (usually 2-3% of the outstanding principal). Check with HDFC for current policies.

Q4: Does EMI affect credit score?
A: Timely EMI payments can help build credit score, while missed payments will negatively impact it.

Q5: How is EMI different from minimum payment?
A: EMI is a fixed monthly payment for converted purchases, while minimum payment (usually 5% of total due) is for regular credit card bills.