1. What is EMI Calculation?

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, this helps 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: Understanding your EMI helps in financial planning, comparing loan options, and ensuring the payments fit within your monthly budget before committing to a credit card purchase.

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 typically charges 1.5%-3.5% monthly interest (18%-42% annually) on outstanding balances converted to EMI.

Q2: Are there any processing fees for EMI conversion?
A: Yes, ICICI usually charges a one-time processing fee of 1-2% of the principal amount for EMI conversion.

Q3: Can I prepay my EMI?
A: Most banks including ICICI allow prepayment but may charge a foreclosure fee of 2-5% of the outstanding amount.

Q4: What happens if I miss an EMI payment?
A: Late payments attract penalty charges (2-3% of EMI) and may affect your credit score negatively.

Q5: How does EMI affect credit limit?
A: The principal amount is blocked from your credit limit, which gets released gradually as you pay EMIs.