1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over time, the loan is paid off in full.

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
• \( EMI \) — Equated monthly installment (INR)

Explanation: The formula calculates the fixed payment amount that includes both principal and interest components for each month of the loan term.

3. Understanding HDFC Card Loans

Details: HDFC credit card loans offer quick access to funds with flexible repayment options. Interest rates typically range from 12% to 36% APR depending on creditworthiness and loan tenure.

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 card loans?
A: Interest rates usually range between 12% to 36% per annum, depending on your credit score and relationship with the bank.

Q2: Are there any processing fees for HDFC card loans?
A: Yes, HDFC typically charges 2-3% of the loan amount as processing fees, with a minimum fee of ₹500-₹1000.

Q3: Can I prepay my HDFC card loan?
A: Yes, but prepayment charges may apply (usually 2-5% of the outstanding principal) if paid within the first 6-12 months.

Q4: How does EMI affect my credit score?
A: Timely EMI payments improve your credit score, while missed payments can significantly damage it.

Q5: What happens if I miss an EMI payment?
A: Late payment fees (up to ₹500) and additional interest will be charged. Repeated defaults may lead to loan recall and credit score damage.