1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to a lender at a specified date each calendar month. For HDFC credit card loans, EMIs are used to repay both principal and interest each month so the loan is paid off in full over the tenure.

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 accounts for compound interest over the loan period, spreading payments equally across all months.

3. Understanding Loan Components

Details: Your EMI consists of both principal repayment and interest. Early in the tenure, interest component is higher; later, principal repayment dominates.

4. Using the Calculator

Tips: Enter principal amount in INR, APR in percentage (e.g., 15 for 15%), and tenure in months (e.g., 12 for 1 year). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is HDFC credit card interest calculated?
A: Interest is calculated monthly on reducing balance at APR/12 rate. This calculator shows the fixed EMI for the entire tenure.

Q2: What's the minimum/maximum tenure for HDFC card loans?
A: Typically 3 months to 5 years (60 months), but check with HDFC for current offerings.

Q3: Are there prepayment charges?
A: HDFC may charge 2-3% of outstanding principal for prepayment; confirm current policy with the bank.

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

Q5: Can I change EMI amount later?
A: Generally no, EMI is fixed. However, you may prepay or request tenure adjustment (charges may apply).