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 credit cards, EMI options allow you to convert large purchases into manageable monthly payments.

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 payment amount that includes both principal and interest components each month.

3. Importance of EMI Calculation

Details: Calculating EMI helps you plan your finances better by understanding your monthly obligations when converting credit card purchases to EMI. It helps compare different tenure options and choose the most suitable one for your budget.

4. Using the Calculator

Tips: Enter the principal amount (purchase amount), annual interest rate (APR), and loan tenure in months. The calculator will show your monthly EMI, total payment, and total interest amount.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical APR for HDFC credit card EMI?
A: HDFC credit card EMI interest rates typically range between 12% to 24% APR depending on the product, tenure, and ongoing offers.

Q2: Are there any processing fees for converting to EMI?
A: HDFC may charge a processing fee (usually 0-2% of the principal amount) for converting purchases to EMI.

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

Q4: How is credit card EMI different from loan EMI?
A: Credit card EMI is typically for converting existing purchases, while loans provide new funds. Interest rates and terms may differ.

Q5: Does converting to EMI affect credit score?
A: Properly managed EMIs can help build credit history, but missed payments will negatively impact your score.