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 credit cards, EMIs allow you to convert large purchases into smaller monthly payments.

2. How EMI is Calculated

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (APR/12)
• \( N \) — Loan tenure in months

Explanation: The formula accounts for both principal repayment and interest payment components that change over the loan tenure.

3. Understanding Credit Card EMIs

Details: HDFC Bank credit cards typically offer EMI conversion options with interest rates ranging from 12% to 36% APR. The actual rate depends on your card type, purchase amount, and tenure selected.

4. Using the Calculator

Tips: Enter the purchase amount as principal, your credit card's APR (annual percentage rate), and the desired repayment period in months. The calculator will show your monthly EMI, total repayment amount, and total interest payable.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical APR for HDFC credit card EMIs?
A: HDFC credit card EMIs usually range between 12%-36% APR depending on the card variant and promotional offers.

Q2: Are there any processing fees for EMI conversion?
A: HDFC may charge a one-time processing fee of 1-2% of the principal amount for EMI conversion.

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

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

Q5: Is EMI better than minimum payment?
A: EMIs have fixed repayment schedules with lower interest than revolving credit (typically 2-3% monthly on unpaid balances).