1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. For credit cards, EMI options allow you to convert large purchases into monthly payments.

2. How Does the Calculator Work?

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

Explanation: The formula calculates the fixed monthly payment that would pay off the loan over the specified period with interest.

3. Importance of EMI Calculation

Details: Calculating EMI helps you plan your finances, compare loan options, and understand the total cost of borrowing before committing to a credit card EMI plan.

4. Using the Calculator

Tips: Enter the principal amount (purchase amount), annual interest rate (APR), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical APR for HDFC credit card EMI?
A: HDFC credit card EMI interest rates typically range from 12% to 36% APR depending on the offer and tenure.

Q2: How does HDFC EMI compare to ICICI EMI?
A: Both banks offer similar EMI schemes, but interest rates may vary. Always compare current offers before choosing.

Q3: Are there any hidden charges in EMI conversion?
A: Some banks may charge processing fees (typically 0-2%). Check the terms before converting to EMI.

Q4: Can I prepay my credit card EMI?
A: Most banks allow prepayment but may charge a foreclosure fee (usually 2-3% of outstanding principal).

Q5: Does EMI affect credit score?
A: Timely EMI payments can help build credit history, but missed payments will negatively impact your score.