1. What is EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines your fixed monthly payment for an ICICI credit card loan through Groww. It includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula calculates the fixed payment amount that completely pays off the loan (principal + interest) over the specified term.

3. Importance of EMI Calculation

Details: Knowing your EMI helps in financial planning, budgeting, and comparing different loan options. It ensures you can comfortably afford the monthly 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: How is ICICI credit card loan interest calculated?
A: Interest is calculated monthly on the reducing balance, with the rate converted to a monthly rate (annual rate/12).

Q2: What factors affect my EMI amount?
A: EMI depends on three factors: loan amount, interest rate, and loan tenure. Higher amounts/rates increase EMI, while longer tenures reduce it.

Q3: Can I prepay my ICICI credit card loan?
A: Yes, most ICICI credit card loans allow prepayment, though some may have prepayment charges. Check your loan terms.

Q4: How does tenure affect total interest paid?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures have higher EMIs but lower total interest.

Q5: Is this calculator specific to Groww platform?
A: While the formula is standard, this calculator is designed for ICICI credit card loans processed through Groww's platform.