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 HDFC credit cards, EMIs allow you to convert large purchases into manageable monthly payments with interest.

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)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated Monthly Installment (INR)

Explanation: The formula accounts for compound interest over the loan period, spreading both principal and interest equally across each monthly payment.

3. Importance of EMI Calculation

Details: Calculating EMI helps you plan your finances, understand the total cost of credit, and compare different loan options before making purchases on your HDFC credit card.

4. Using the Calculator

Tips: Enter the purchase amount (principal), HDFC's applicable APR (annual percentage rate), and the desired repayment period 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 product, tenure, and promotional offers.

Q2: Are there any processing fees for EMI conversion?
A: HDFC may charge a processing fee (usually 0-2% of the principal amount) for converting purchases to EMI.

Q3: Can I prepay my HDFC credit card EMI?
A: Yes, but prepayment charges may apply (typically 2-4% of the outstanding principal).

Q4: How does EMI affect my credit limit?
A: The principal amount is blocked from your available credit limit, which gets released as you make EMI payments.

Q5: Can I convert any purchase to EMI?
A: Most purchases above ₹2,500 can be converted to EMI, either at the time of purchase or later through the HDFC NetBanking portal.