Credit Card Calculator for

HDFC Bank

Introduction to HDFC Credit Card EMI Calculator

HDFC Bank provides a wide range of credit cards to meet the diverse financial needs of its customers. Cardholders can use the credit card within the pre-approved limit and repay the amount on the due date as decided by the billing cycle.

If the credit card users fail to pay the outstanding amount within the due date, HDFC Bank may levy a penalty or late fee. The total credit card outstanding amount can also be converted into equated monthly installments (EMIs) for clearing the dues without additional fees.

What is the HDFC Credit Card EMI Calculator?

An HDFC Credit Card EMI Calculator is an online tool that calculates your EMI for settling the outstanding dues. The HDFC Credit Card EMI Calculator is designed to simplify the process of determining the monthly obligation by performing complex calculations in simple steps. It enables you to compare various borrowing amounts, interest rates, and repayment terms to determine the most suitable option.

How to Use the HDFC Credit Card EMI Calculator?

Follow these steps to use the HDFC Credit Card EMI Calculator:

1. Go to the ‘HDFC Credit Card EMI Calculator’ section.
2. Enter the amount you want to borrow.
3. Select the repayment period (how long you want to pay back the borrowing).
4. Select the interest rate.
5. The calculator will show you instantly your monthly EMI amount.

Factors That Affect Your HDFC Credit Card EMI

The following factors affect your HDFC Credit Card EMI:

• The outstanding amount you want to convert to monthly instalments.
• Interest rate charged by the credit card issuer.
• The repayment duration or EMI tenure.

Benefits of Using the HDFC Credit Card EMI Calculator

The HDFC Credit Card EMI Calculator offers several benefits:

• It determines EMI and compares options based on the amount, interest rate, and repayment period.
• It helps you make smarter financial decisions after analysing various EMI options.
• It performs complex calculations using a simple process.
• It has an easy-to-use interface.
• It provides a detailed amortisation schedule, simplifying the breakdown of outstanding balance and interest payments.
• It explains how extra payments can reduce repayment tenure and interest.

HDFC Credit Card Interest Rates and Tenure

The monthly interest rate for HDFC credit cards starts at 3.6%, depending on the card type and the user's credit history. The Annual Percentage Rate (APR), which is the annual interest rate, can range around 43.2% based on the monthly interest rate.

The tenure for repaying the credit card dues is decided as per the monthly billing cycle. Paying the dues within the stipulated time does not attract any extra charge of interest. If you choose to convert transactions into EMIs, the repayment tenure can range between 3 and 24 months, as per your preference.

Understanding HDFC Credit Card EMI and Its Components

Your HDFC credit card EMI has two parts:

• Outstanding Due: This is the amount that goes toward repaying the original borrowing. Initially, this part is smaller because you pay more interest for a larger outstanding balance. As you pay off the due amount, this part increases in the EMI.
• Interest: This is the cost of borrowing. It’s higher at the start when the due amount is larger and decreases as you repay.

How to Calculate Your Credit Card EMI?

You can calculate your EMI using the following formula:

EMI = P × R × (1+R)^n / {(1+R)^n – 1}

Where:

• P – Total transaction amount or outstanding credit card balance converted into EMIs.
• R – Interest rate charged by the credit card issuer.
• n – Duration for which you will pay the EMIs.

Common Mistakes to Avoid When Using the HDFC Credit Card EMI Calculator

To obtain correct results using the HDFC Credit Card EMI Calculator, keep these things in mind:

• Enter the correct information. Make sure you provide the correct amount, interest rate, and tenure.
• Consider other fees that may not be included in the calculation.
• Keep the calculator up-to-date with any changes to your interest rate if you have opted for a floating interest rate.

Conclusion

The HDFC Credit Card EMI Calculator can facilitate quick decision-making, helping you manage your finances better. The calculator not only tells you how much money you need to pay each month but also enables you to opt for a convenient EMI amount. It’s advisable to use a credit card EMI calculator before finalizing whether converting your credit card repayments into EMIs will be financially feasible or not.