Managing credit card payments can be challenging, especially when dealing with high outstanding balances. HDFC Bank offers a variety of credit cards tailored to different financial needs, allowing users to spend within a pre-approved limit and repay as per the billing cycle. However, to make repayments more manageable, the HDFC Credit Card EMI Calculator is a valuable tool.
It helps convert outstanding dues into easy EMIs, offering a clear view of the repayment schedule, interest rates, and tenure. In this blog, we’ll explore how this tool works, its key features, and the benefits it offers for seamless financial planning.
The HDFC credit card EMI calculator makes financial planning easy by employing three parameters- principal, interest rate, and tenure to determine EMIs. It employs the reducing balance formula to deliver precise calculations where interest is paid on only the outstanding principal.
This simple method assists you in analyzing varying repayment schedules and choosing the most appropriate terms for your money objectives. It is often a great tool to pay credit card charges with ease and minimal tension.
HDFC Credit Card EMI Calculator is a user-friendly tool for calculating the monthly instalment amount without any professional know-how. Follow the below stuff to use the Cleartax HDFC Bank credit card EMI calculator:
The HDFC Bank credit card uses the following formula to calculate the monthly instalment amount:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
where,
Let us assume you buy a premium product worth Rs. 1.5 lakhs using your HDFC Bank Credit card. You wish to pay in the form of EMI for 2 years against the APR of 12%. Then, you can apply the EMI formula as presented below in the form of the following steps:
P = Rs. 1,50,000
R = 12% p.a.
N = 2 years (24 months)
Hence, your total interest for the tenure will be Rs. 19,465, and your EMI will be calculated as Rs. 7,061. Your overall amount will be Rs. 1,69,465.
Here are the key benefits of using the HDFC Bank credit card EMI interest rate calculator:
The following three primary factors influence the HDFC Bank credit card:
HDFC credit cards have a minimum monthly interest rate starting at 3.75%, with rates varying according to the card type and the customer's credit profile. The APR, or annual interest rate, may go as high as about 45% based on the monthly interest rate.
In addition, the tenure of repaying your credit card dues is decided by the card’s monthly billing cycle. The interest is not charged if the amount is repaid within the period. And if you wish to convert the transactions into EMIs, your repayment period may begin from 3 to 24 months based on your preference.
In order to get precise outcomes from the HDFC credit card smart EMI calculator, heed the following precautions:
The HDFC Credit Card EMI Calculator is a useful tool for breaking credit card dues into manageable monthly payments. With the input of information such as the outstanding balance, rate of interest, and repayment period, users can calculate their Equated Monthly Installment (EMI) instantly. This aids in proper financial planning, allowing for improved debt management and long-term financial security.
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