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, this calculator helps convert outstanding amounts into manageable EMIs.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal amount (Rs)
• \( R \) — Monthly interest rate (annual rate / 12, as decimal)
• \( N \) — Loan tenure in months

Explanation: The formula accounts for compound interest over the loan period, spreading payments equally across all months.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps in financial planning, comparing loan options, and understanding the total cost of credit card conversions to EMI.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How does ICICI credit card EMI compare to SBI?
A: ICICI's EMI conversion rates are generally comparable to SBI, with minor variations based on current offers and customer profile.

Q2: What is a typical interest rate for credit card EMI?
A: Rates typically range between 12-24% annually, depending on card type, tenure, and ongoing promotions.

Q3: Are there any processing fees for EMI conversion?
A: Most banks charge 1-2% processing fee or GST on the interest amount. Check with your bank for exact charges.

Q4: Can I prepay my credit card EMI?
A: Yes, but banks may charge foreclosure fees (usually 2-3% of outstanding principal). Check your bank's policy.

Q5: How is credit card EMI different from personal loan?
A: Credit card EMIs usually have higher interest rates but simpler processing. Personal loans offer larger amounts and longer tenures.