1. What is EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines the fixed monthly payment a borrower makes to repay a loan. For ICICI credit card loans, this includes both principal and interest components.

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 as decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Explanation: The formula calculates the fixed payment amount that includes both principal repayment and interest charges each month.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, budgeting, and comparing different loan options. It ensures you can comfortably repay without straining your finances.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the typical APR for ICICI credit card loans?
A: ICICI credit card loans typically have APRs ranging from 12% to 24%, depending on your credit profile and current offers.

Q2: Are there any processing fees for ICICI credit card loans?
A: Yes, ICICI usually charges a processing fee of 2-3% of the loan amount, which isn't included in this EMI calculation.

Q3: Can I prepay my ICICI credit card loan?
A: Yes, but prepayment charges may apply depending on the loan terms and timing of prepayment.

Q4: How does EMI differ from minimum payment due?
A: EMI is a fixed repayment amount for a loan, while minimum payment due is the smallest amount you can pay on your credit card to avoid late fees.

Q5: What if I miss an EMI payment?
A: Late payments attract penalty charges (typically 2-3% of EMI) and may negatively impact your credit score.