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 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 loan amount (INR)
• \( R \) — Monthly interest rate (APR/12)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated Monthly Installment (INR)

Explanation: The formula calculates the fixed payment amount that includes both principal and interest components.

3. Importance of EMI Calculation

Details: Calculating EMI helps you plan your finances better by understanding your monthly obligations when converting credit card purchases to EMI.

4. Using the Calculator

Tips: Enter the principal amount (purchase value), annual interest rate (check your ICICI card terms), and 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 credit card EMI interest rates typically range from 12% to 40% APR depending on the card type and tenure.

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

Q3: Can I prepay my 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 a good credit history, while missed payments can negatively impact your score.

Q5: Is GST applicable on EMI interest?
A: Yes, GST is applicable on the interest component of your EMI as per current tax laws.