1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. For HDFC credit card loans, this amount remains constant throughout the loan tenure.

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 calculates the fixed monthly payment that would pay off the loan with interest over the specified period.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan their finances, and compare different loan options before committing to a credit card loan.

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: How does HDFC credit card loan compare to ICICI?
A: Both offer similar loan products with comparable interest rates (typically 15%-24% APR) and flexible tenures (3-60 months).

Q2: What factors affect my EMI amount?
A: EMI depends on three variables - loan amount, interest rate, and repayment tenure. Higher amounts/rates increase EMI, while longer tenures reduce it.

Q3: Are there any hidden charges?
A: Most banks charge processing fees (1-3% of loan amount) and may have prepayment penalties. Always check the fine print.

Q4: Can I prepay my loan?
A: Yes, but banks may charge prepayment fees (usually 2-5% of outstanding amount) if paid before a certain period.

Q5: How is interest calculated?
A: Interest is calculated monthly on the reducing balance, meaning each EMI payment includes both principal and interest components.