EMI Calculation 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 HDFC credit cards in Malaysia, EMI helps convert large purchases into affordable monthly payments.
The calculator uses the standard EMI formula:
Where:
Explanation: The formula calculates the fixed monthly payment that would pay off the loan with interest over the specified period.
Details: Calculating EMI helps credit card users plan their finances by understanding the monthly commitment and total interest cost before converting purchases to EMI.
Tips: Enter the purchase amount in MYR, the annual interest rate (APR) as offered by HDFC Bank, and the desired repayment period in months (typically 6-60 months).
Q1: What is the typical APR for HDFC credit cards in Malaysia?
A: APRs typically range from 15% to 18% per annum, but may vary based on card type and promotional offers.
Q2: Are there any processing fees for EMI conversion?
A: HDFC may charge a one-time processing fee (usually 1-3% of principal) which is not included in this calculation.
Q3: Can I prepay my EMI?
A: Yes, but prepayment charges may apply. Check with HDFC Bank for current policies.
Q4: How does this differ from personal loan EMI?
A: Credit card EMI typically has higher interest rates but simpler approval than personal loans.
Q5: When is EMI deducted from my credit card?
A: EMI amounts are automatically added to your monthly credit card bill on the statement date.