1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month until the loan is paid off. Each EMI consists of both principal and interest components.

2. How EMI Calculation Works

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (APR/12 as decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Example: For ₹1,00,000 loan at 15% APR for 12 months:

• Monthly rate = 15%/12 = 1.25% = 0.0125
• EMI = [100000 × 0.0125 × (1+0.0125)^12] / [(1+0.0125)^12 - 1] = ₹9,026

3. About HDFC Credit Card Loans

Details: HDFC Bank offers personal loans through credit cards with competitive interest rates (typically 15%-24% APR) and flexible tenures (3-60 months).

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (APR) in percentage, and loan 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 loans?
A: Rates typically range from 15% to 24% APR depending on credit score and relationship with the bank.

Q2: Are there any processing fees?
A: HDFC usually charges 2-3% of the loan amount as processing fee plus applicable taxes.

Q3: Can I prepay my HDFC credit card loan?
A: Yes, but prepayment charges of 2-5% may apply if paid before 6-12 months (varies by offer).

Q4: How does EMI affect credit score?
A: Timely EMI payments improve credit score, while missed payments negatively impact it.

Q5: What if I miss an EMI payment?
A: Late payment fees (up to ₹1,000) and additional interest will be charged, and it may affect future credit eligibility.