1. What is the EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines the fixed payment amount a borrower makes each month to repay a loan. For Union Bank credit cards, this uses Bankrate's standard methodology to calculate monthly payments.

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
• \( EMI \) — Equated monthly installment ($)

Explanation: The formula accounts for both principal and interest components of the loan payment, amortized over the loan period.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers understand their repayment obligations and plan their finances accordingly when using Union Bank credit card loans.

4. Using the Calculator

Tips: Enter the principal amount in dollars, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is Union Bank's credit card interest calculated?
A: Interest is calculated monthly on the outstanding balance using the daily periodic rate (APR/365).

Q2: Are there any fees included in this calculation?
A: This calculator only includes principal and interest. Actual payments may include additional fees.

Q3: What's the difference between fixed and variable rate EMI?
A: Fixed rate EMI remains constant, while variable rate EMI may change with interest rate fluctuations.

Q4: Can I prepay my Union Bank credit card loan?
A: Prepayment options depend on your specific credit card terms. Check with Union Bank for details.

Q5: How accurate is this calculator?
A: This provides a close estimate using Bankrate's methodology, but actual terms may vary based on your credit agreement.