1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month for a specified number of months to repay a loan. For ICICI Bank credit card holders in Malaysia, this calculator helps estimate monthly payments for purchases converted to EMI.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (MYR)
• \( R \) — Monthly interest rate (APR/12)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (MYR)

Explanation: The formula accounts for both principal and interest components of the loan, distributed equally across all monthly payments.

3. Importance of EMI Calculation

Details: Calculating EMI helps credit card users plan their finances by understanding their monthly repayment obligations before converting purchases to EMI.

4. Using the Calculator

Tips: Enter the principal amount in MYR, 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 ICICI credit card EMI in Malaysia?
A: Interest rates typically range from 12% to 24% APR depending on the card type and promotion.

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

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

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

Q5: Is GST applicable on EMI interest?
A: Yes, GST is applicable on the interest component of EMI in Malaysia.