1. What is ICICI Credit Card EMI?

The ICICI Credit Card EMI (Equated Monthly Installment) allows you to convert large purchases into fixed monthly payments. This calculator includes the GST component charged on the interest portion of your EMI.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula with GST on interest:

Where:

• \( P \) — Principal loan amount (₹)
• \( R \) — Monthly interest rate (Annual Rate ÷ 12)
• \( N \) — Loan tenure in months
• \( I \) — Interest portion (Total Interest ÷ Tenure)
• \( GST\ Rate \) — 18% (0.18 as decimal)

Explanation: The first part calculates standard EMI, while the second part adds the GST component on the interest portion.

3. Understanding GST on Interest

Details: As per Indian tax laws, 18% GST is applicable on the interest portion of credit card EMIs. This is calculated on the total interest and then divided across all EMI payments.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why is GST charged on EMI interest?
A: The Indian government considers credit card interest as a financial service, which attracts 18% GST under current tax laws.

Q2: Is GST charged on the entire EMI amount?
A: No, GST is only charged on the interest portion of the EMI, not on the principal repayment.

Q3: How does tenure affect EMI with GST?
A: Longer tenures reduce EMI amount but increase total interest paid and consequently the GST amount.

Q4: Are there any processing fees for EMI conversion?
A: ICICI Bank may charge processing fees for EMI conversion, which are not included in this calculation.

Q5: Can I prepay my EMI without penalty?
A: ICICI Bank's prepayment policies vary; check with the bank for current terms regarding prepayment of credit card EMIs.