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 ICICI credit cards, this allows 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 accounts for compound interest over the repayment period to calculate fixed monthly payments.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan finances, and compare different loan options before making credit card purchases.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is ICICI Bank's typical credit card interest rate?
A: ICICI credit cards typically have APR ranging from 24% to 42% per annum, depending on card type and customer profile.

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

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

Q4: How does EMI affect credit score?
A: Timely EMI payments improve credit score, while missed payments negatively impact it.

Q5: Is GST applicable on EMI interest?
A: Yes, GST at 18% is applicable on processing fees and interest components.