1. What is EMI Conversion?

EMI (Equated Monthly Installment) conversion allows HDFC credit card holders in Malaysia to convert large purchases into manageable monthly payments with interest. This calculator helps determine your monthly payment amount.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula calculates the fixed payment amount required each month to pay off the loan over the specified period.

3. Importance of EMI Calculation

Details: Understanding your EMI helps with budgeting and ensures you can comfortably afford the monthly payments before committing to a credit card purchase conversion.

4. Using the Calculator

Tips: Enter the principal amount in MYR, annual interest rate (APR) in percentage, and loan tenure in months (typically 6-60 months for credit card EMI).

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for HDFC EMI conversion in Malaysia?
A: Rates vary but typically range from 8% to 18% APR depending on promotion and tenure.

Q2: Are there any processing fees for EMI conversion?
A: HDFC may charge a one-time processing fee (usually 1-3% of principal) which isn't included in this calculation.

Q3: Can I prepay my EMI?
A: Most banks allow prepayment but may charge a foreclosure fee (typically 1-5% of outstanding amount).

Q4: How does this differ from personal loan EMI?
A: Credit card EMI typically has higher interest rates but simpler approval for existing cardholders.

Q5: Is GST applicable on EMI interest?
A: In Malaysia, service tax (SST) may apply to the interest component of your EMI.