1. What is EMI?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. For credit cards, EMI converts your large purchases into smaller monthly payments with interest.

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 monthly payment that would pay off the loan over the specified tenure with the given interest rate.

3. Understanding ICICI Credit Card EMI

Details: ICICI Bank offers EMI conversion on credit card purchases, typically with interest rates ranging from 12% to 40% APR depending on the product and tenure. The calculator helps estimate your monthly payments before converting a purchase to EMI.

4. Using the Calculator

Tips: Enter the purchase amount as principal, ICICI's offered APR (annual percentage rate), and your preferred tenure in months. The calculator will show your estimated EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical APR for ICICI credit card EMI?
A: ICICI credit card EMI APR typically ranges from 12% to 40% depending on the product, tenure, and customer profile.

Q2: Are there any processing fees for EMI conversion?
A: ICICI may charge a processing fee (usually 0.5-2% of the principal) for converting purchases to EMI.

Q3: Can I prepay my EMI?
A: Yes, but prepayment charges may apply (usually 2-4% of the outstanding principal).

Q4: How does EMI affect my credit limit?
A: The principal amount is blocked from your available credit limit and gets released as you pay each EMI.

Q5: Can I convert any purchase to EMI?
A: Most purchases above ₹2,500-5,000 can be converted to EMI, subject to ICICI's terms and conditions.