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. It's used to pay off both interest and principal each month so that over time, the loan is paid off in full.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (Rs)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that would pay off the loan with interest over the specified tenure.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, comparing loan options, and ensuring the monthly payment fits within your budget before committing to a loan.

4. Using the Calculator

Tips: Enter the principal amount in Rs, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is HDFC credit card EMI calculated?
A: HDFC converts your credit card purchase into a loan and calculates EMI using the standard formula shown above, based on the interest rate and tenure you choose.

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

Q3: Is there any prepayment penalty on HDFC EMI?
A: HDFC may charge a prepayment penalty depending on the loan type and terms. Check with the bank for specific details.

Q4: Can I change my EMI tenure later?
A: Generally, the EMI tenure is fixed at the start. Some banks may offer restructuring options with applicable charges.

Q5: How does part payment affect my EMI?
A: Part payments reduce the principal amount, which can either reduce your EMI or shorten the loan tenure, depending on the terms you choose.