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. It includes both principal and interest components.

2. How Does the EMI 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 with the given interest rate.

3. Importance of EMI Calculation

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

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How is ICICI credit card interest calculated?
A: ICICI Bank typically charges a monthly interest rate of 2.5%-3.5% (annual 30%-42%) on outstanding credit card balances converted to EMI.

Q2: Are there any processing fees for ICICI card EMI?
A: Yes, ICICI Bank usually charges a processing fee of 1-2% of the principal amount for converting purchases to EMI.

Q3: Can I prepay my ICICI card EMI?
A: Yes, but prepayment charges may apply (usually 2-3% of the outstanding principal). Check with the bank for current terms.

Q4: What happens if I miss an EMI payment?
A: Late payment fees (up to Rs. 1000) and additional interest charges will apply, and it may negatively impact your credit score.

Q5: How does EMI affect credit score?
A: Timely EMI payments improve credit score, while missed payments can significantly lower it.