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 ICICI credit cards, EMIs allow 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 amount (loan amount in INR)
• \( R \) — Monthly interest rate (APR/12 as decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment in INR

Explanation: The formula accounts for both principal repayment and interest payment components that change over the loan tenure.

3. Importance of EMI Calculation

Details: Calculating EMI helps you plan your finances, understand the total cost of credit, and compare different loan options before making a purchase decision.

4. Using the Calculator

Tips: Enter the principal amount in INR, 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 APR for ICICI credit cards?
A: ICICI credit card APRs typically range from 36% to 48% per annum (3% to 4% monthly), but check your specific card terms.

Q2: Are there any processing fees for EMI conversion?
A: ICICI may charge a processing fee (usually 1-2% of the 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 improve your score, while missed payments can negatively impact it.

Q5: Can I convert existing purchases to EMI?
A: Yes, ICICI allows conversion of eligible past purchases to EMI within a specified period (usually 30-90 days).