1. What is EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines the fixed payment amount a borrower makes each month to repay a loan. For HDFC credit card loans, this includes both principal and interest components.

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, distributing payments equally each month.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, compare loan offers, and understand the total cost of borrowing before committing to a loan.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How is HDFC credit card interest calculated?
A: Interest is calculated daily on the outstanding balance and charged monthly at the applicable APR.

Q2: What factors affect my EMI amount?
A: Principal amount, interest rate, and loan tenure are the primary factors. Higher principal or rates increase EMI, while longer tenures reduce EMI.

Q3: Can I prepay my HDFC credit card loan?
A: Yes, but prepayment charges may apply depending on your loan terms and the timing of prepayment.

Q4: How accurate is this calculator?
A: This provides a close estimate, but your actual EMI may vary slightly due to rounding or specific bank policies.

Q5: Does this include other charges?
A: No, this calculates only principal and interest. Processing fees, insurance, or other charges would be additional.