EMI Formula:
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EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month for ICICI credit card purchases converted to EMI. It consists of both principal and interest components.
The calculator uses the standard EMI formula:
Where:
Explanation: The formula calculates the fixed monthly payment that would pay off the loan over the specified period with the given interest rate.
Details: Calculating EMI helps in financial planning, comparing different loan options, and understanding the total cost of credit before making purchase decisions.
Tips: Enter principal amount in INR, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.
Q1: What is the typical APR for ICICI credit card EMI?
A: ICICI Bank credit card EMI interest rates typically range from 12% to 40% APR depending on the card type and promotion.
Q2: Are there any processing fees for EMI conversion?
A: ICICI Bank may charge a processing fee of 0.5% to 2% of the principal amount for converting purchases to EMI.
Q3: Can I prepay my ICICI credit card EMI?
A: Yes, but prepayment charges may apply depending on the EMI scheme terms.
Q4: How does EMI affect credit score?
A: Timely EMI payments can improve your credit score, while missed payments can negatively impact it.
Q5: What happens if I miss an EMI payment?
A: Late payment fees will apply and it may affect your credit score. Continued non-payment may lead to additional penalties.