1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over time, the loan is paid off in full.

2. How EMI Calculation Works

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 calculates the fixed payment amount that includes both principal and interest components for each month of the loan term.

3. Understanding Your Loan Terms

Details: Your total payment includes both principal and interest. A longer tenure reduces EMI but increases total interest paid. Higher interest rates significantly impact your total repayment amount.

4. Using the Calculator

Tips: Enter the 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: What is the typical interest rate for HDFC credit card loans?
A: Interest rates typically range between 12% to 24% APR depending on your credit score and HDFC's current offers.

Q2: Are there any prepayment charges?
A: HDFC may charge 2-4% of the outstanding principal as prepayment charges. Check current terms before prepayment.

Q3: Can I change my EMI amount later?
A: Generally, EMI amounts are fixed for the loan tenure. However, you may request for tenure extension in some cases.

Q4: What happens if I miss an EMI payment?
A: Late payments attract penalty charges (typically 2-3% of EMI) and may negatively impact your credit score.

Q5: How is interest calculated between EMI payments?
A: Interest is calculated daily on the reducing balance, but compounded monthly for EMI calculation.