1. What Is The 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 HDFC credit cards, it helps convert large purchases into manageable monthly payments with interest.

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)
• \( n \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment required to pay off a loan over the specified tenure, including both principal and interest components.

3. Importance Of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, understand the total cost of borrowing, and make informed decisions about credit card purchases and repayment strategies.

4. Using The Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my EMI amount?
A: EMI amount is determined by three main factors: principal amount, interest rate, and loan tenure. Higher principal or interest rates increase EMI, while longer tenures reduce it.

Q2: How is HDFC credit card interest calculated?
A: HDFC calculates interest on daily outstanding balance at the applicable rate, which is then compounded monthly to determine the EMI amount.

Q3: Can I change my EMI amount after conversion?
A: Once converted to EMI, the amount is generally fixed for the tenure. However, you may prepay or foreclose with applicable charges.

Q4: Are there any hidden charges in EMI conversion?
A: HDFC may charge processing fees for EMI conversion. Always check the terms and conditions for any additional charges.

Q5: What happens if I miss an EMI payment?
A: Missing EMI payments may lead to late payment fees, increased interest rates, and negative impact on your credit score.