1. What is HDFC Credit Card EMI Interest?

The HDFC Credit Card EMI interest is the monthly interest charged on your principal balance when you convert a purchase to EMI. The interest is calculated based on your annual percentage rate (APR) divided by 12 months.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( I \) — Monthly interest (INR)
• \( P \) — Principal balance (INR)
• \( R \) — Monthly interest rate (APR / 12 as decimal)

Explanation: The equation calculates the interest portion of your EMI payment for a given month.

3. Importance of Interest Calculation

Details: Understanding your monthly interest helps you evaluate the true cost of EMI purchases and compare different tenure options.

4. Using the Calculator

Tips: Enter your principal balance in INR and the annual interest rate (APR) in percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is APR different from monthly interest rate?
A: APR is the annual rate, while the monthly rate is APR divided by 12. For example, 36% APR = 3% monthly rate.

Q2: Does this include the principal repayment?
A: No, this calculates only the interest portion. Total EMI would include both principal and interest.

Q3: Are there any processing fees for EMI conversion?
A: HDFC may charge processing fees (typically 1-2% of principal) which are not included in this calculation.

Q4: What is the typical APR for HDFC credit card EMI?
A: APRs typically range from 14% to 36% depending on card type and tenure.

Q5: Can I prepay my EMI?
A: Yes, but prepayment charges may apply (usually 2-3% of outstanding principal).