1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month for a specified number of months to repay a loan. For IDFC First Bank credit cards, 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)
• \( N \) — 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 period with compound interest.

3. Importance of EMI Calculation

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

4. Using the Calculator

Tips: Enter 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 interest rate for IDFC First Bank credit cards?
A: Interest rates typically range from 24% to 36% APR, depending on the card variant and customer profile.

Q2: Are there any processing fees for converting to EMI?
A: IDFC First Bank may charge a processing fee (usually 1-2% of principal) for converting purchases to EMI.

Q3: Can I prepay my EMI loan?
A: Yes, but prepayment charges may apply (usually 2-5% of outstanding principal). Check with the bank for current terms.

Q4: How does EMI affect credit score?
A: Timely EMI payments improve credit score, while missed payments negatively impact it. Multiple EMI loans may affect credit utilization ratio.

Q5: What happens if I miss an EMI payment?
A: Late payment fees (up to ₹1,000) and additional interest charges apply. Repeated defaults may lead to card suspension and credit score damage.