1. What is HDFC Smart EMI?

HDFC Bank's Smart EMI plan allows credit card holders to convert high-value purchases into easy monthly installments with fixed interest rates. It provides flexibility in repayment while maintaining credit card benefits.

2. How Does the EMI 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 payment amount required each month to pay off the loan over the specified tenure, including interest.

3. Understanding EMI Calculation

Details: EMI consists of both principal and interest components. Initially, interest portion is higher which gradually reduces over time while principal portion increases.

4. Using the Calculator

Tips: Enter the purchase amount as principal, HDFC's offered APR, and desired tenure (3-36 months typically). The calculator shows monthly EMI, total repayment amount, and total interest payable.

5. Frequently Asked Questions (FAQ)

Q1: What is typical APR for HDFC Smart EMI?
A: APR varies (typically 12-24%) based on card type, tenure, and ongoing offers. Check with HDFC for current rates.

Q2: Are there processing fees for Smart EMI?
A: HDFC may charge 1-2% processing fee plus GST. This is added to the principal amount before EMI calculation.

Q3: Can I prepay my Smart EMI?
A: Yes, but prepayment charges (usually 2-3% of outstanding principal) may apply. Check terms before prepayment.

Q4: How does this affect credit limit?
A: The EMI amount blocks your credit limit, which gets released proportionally with each EMI payment.

Q5: Is GST applicable on interest?
A: Yes, 18% GST is charged on the processing fee and interest component of each EMI.