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, EMI options allow cardholders 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 (Rs)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that would pay off the loan over the specified period, including both principal and interest components.

3. Importance of EMI Calculation

Details: Calculating EMI helps credit card users understand the repayment commitment before converting purchases to EMI. It allows for better financial planning and comparison between different tenure options.

4. Using the Calculator

Tips: Enter the principal amount (purchase amount), annual interest rate (as offered by ICICI Bank), and the desired 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?
A: ICICI Bank offers EMI conversion at varying rates (typically 12-24% p.a.) depending on the product, tenure, and ongoing offers.

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

Q3: Can I prepay my ICICI 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 can help build credit history, while missed payments negatively impact your credit score.

Q5: Can all ICICI credit card purchases be converted to EMI?
A: Most retail purchases can be converted, subject to bank approval and minimum amount requirements (usually Rs 2,500-5,000).