1. What is EMI Calculation?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. For ICICI credit cards, this helps convert outstanding balances into manageable monthly payments.

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 a decimal)
• \( N \) — Loan tenure in months

Explanation: The formula accounts for both principal repayment and interest payment components that make up each EMI installment.

3. Importance of EMI Calculation

Details: Calculating EMI helps credit card users plan their finances by understanding the monthly commitment when converting purchases to EMIs. It helps avoid default and manage cash flow.

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 is ICICI credit card EMI different?
A: ICICI Bank offers flexible EMI options on credit cards with varying interest rates based on tenure and promotional offers.

Q2: What are typical interest rates?
A: ICICI credit card EMI interest rates typically range from 12% to 24% per annum depending on the offer and tenure.

Q3: Are there any processing fees?
A: ICICI may charge a one-time processing fee (usually 1-2% of principal) when converting to EMI.

Q4: Can I prepay my EMI?
A: Yes, but prepayment charges may apply (usually 2-3% of outstanding principal).

Q5: How does this compare to personal loan EMI?
A: Credit card EMIs often have higher interest rates but more convenient approval for existing cardholders.