1. What is EMI?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. For credit cards, EMI converts your purchase into fixed monthly payments with interest.

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)
• \( N \) — 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. Understanding ICICI Credit Card EMI

Details: ICICI Bank offers EMI conversion on credit card purchases with interest rates typically ranging from 12% to 40% APR depending on the product and tenure.

4. Using the Calculator

Tips: Enter the purchase amount (principal), annual interest rate (check your card terms), and repayment period in months. The calculator will show your monthly EMI, total repayment amount, and total interest paid.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for ICICI credit card EMI?
A: Rates vary but typically range from 12% to 40% APR depending on the product, tenure, 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 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 can help build credit history, while missed payments negatively impact your score.

Q5: Is EMI better than minimum payment?
A: EMI is more disciplined and usually has lower interest than revolving credit, but compare total costs before deciding.