1. What is EMI Calculation?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. For HDFC credit cards, this helps 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 as decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Explanation: The formula accounts for both principal and interest components of the loan, distributed equally over the repayment period.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, budgeting, and comparing different credit card EMI options before making large purchases.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for HDFC credit card EMI?
A: HDFC credit card EMI interest rates typically range from 12% to 36% APR depending on the product and tenure.

Q2: Are there any processing fees for EMI conversion?
A: Yes, HDFC usually charges a processing fee of 1-2% of the principal amount for EMI conversion.

Q3: Can I prepay my credit card EMI?
A: Yes, but prepayment charges may apply. Check with HDFC for current prepayment policies.

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

Q5: Is EMI better than minimum payment?
A: EMI has fixed tenure and interest, while minimum payment has revolving credit with higher interest. EMI is generally better for planned purchases.