1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month for loan repayment. For ICICI credit card loans in India, EMI consists of both principal and interest components.

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 / 12 / 100)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that will completely repay the loan over its tenure, accounting for compound interest.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan finances, and compare different loan options before committing to ICICI credit card loans.

4. Using the Calculator

Tips: Enter 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: What is the typical interest rate for ICICI credit card loans?
A: Interest rates typically range from 12% to 24% per annum, depending on credit score and other factors.

Q2: Are there any prepayment charges for ICICI credit card loans?
A: ICICI Bank may charge 0-5% of the principal outstanding as prepayment charges, depending on the loan terms.

Q3: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q4: Can I change my EMI amount after loan disbursal?
A: Generally no, unless you opt for loan restructuring or tenure extension with bank approval.

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