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 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 (₹)
• \( R \) — Monthly interest rate (APR/12 as decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated Monthly Installment (₹)

Explanation: The formula accounts for compound interest over the loan period to calculate fixed monthly payments that include both principal and interest components.

3. Importance of EMI Calculation

Details: Calculating EMI helps you plan your finances, understand the total cost of credit, and compare different loan/credit card EMI options before making a purchase.

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 EMI?
A: Interest rates vary but typically range between 12% to 24% APR depending on the card type and promotional offers.

Q2: Are there any processing fees for EMI conversion?
A: HDFC usually charges a processing fee of 1-2% of the principal amount or a minimum fixed fee, whichever is higher.

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

Q4: How does EMI affect my credit limit?
A: The principal amount is blocked from your available credit limit and gets released as you make EMI payments.

Q5: Is EMI better than paying minimum amount due?
A: EMI usually has lower interest rates than revolving credit, making it a better option for large purchases you can't pay immediately.