1. What is EMI Calculation?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. For Axis Bank credit card holders, this calculator helps estimate monthly payments for home-related purchases converted to EMIs.

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)
• \( N \) — Loan tenure in months

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: Understanding your EMI helps in budgeting and financial planning. It allows you to assess affordability before making purchases on your Axis Bank credit card.

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: What is the typical interest rate for Axis Bank credit card EMIs?
A: Interest rates vary but typically range between 12% to 24% per annum for most consumer durables and home-related purchases.

Q2: Are there any processing fees for converting to EMI?
A: Axis Bank may charge a processing fee (usually 1-2% of the principal amount) for converting purchases to EMIs.

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

Q4: How does this differ from personal loan EMIs?
A: Credit card EMIs often have higher interest rates but quicker approval for existing card holders compared to personal loans.

Q5: What happens if I miss an EMI payment?
A: Late payment fees will apply, and it may negatively impact your credit score. Repeated defaults may lead to higher penalties.