Credit Card EMI Calculator: Calculate EMI and Interest Instantly
A Credit Card EMI calculator helps you manage your outstanding Credit Card loan better. Understand the exact amounts for EMI, total interest, and total repayment to plan your repayment better.
A Surprising Story: The "0% EMI" Trap
Rohan was excited to buy a new laptop with a "0% EMI" offer on his credit card. It seemed like a fantastic deal. However, when his first statement arrived, he was surprised to see a 'processing fee' and GST added to his EMI. Confused, he used a credit card EMI calculator.
He entered the transaction amount and selected a low interest rate to simulate the "0% offer". Then he added the processing fee. The calculator instantly showed him the breakdown. The one-time processing fee and the monthly GST on the 'interest' component (even if the rate is low, there's a notional interest for GST calculation) added a significant amount to his total cost. He realized that "0% EMI" doesn't always mean "zero cost". This small calculation helped him become a more aware consumer, always looking beyond the marketing headlines to understand the true cost of any financial product.
FAQs
What is a Credit Card EMI?
A Credit Card EMI (Equated Monthly Instalment) is a facility that allows you to convert a large credit card purchase into smaller, more manageable monthly payments. For more details on credit card regulations, you can refer to the official Reserve Bank of India (RBI) website.
How is GST calculated on Credit Card EMI?
GST (currently at 18%) is levied on the one-time processing fee and the interest portion of each monthly EMI. This calculator automatically adds these GST components.
Will converting a purchase to EMI affect my credit score?
Converting a purchase into EMIs can be a smart move for your credit score if you make timely payments. However, missing any EMI payment can negatively impact your score. You can check your score on official portals like CIBIL.
Explore More Financial Tools
For comparing financial products, you can visit platforms like BankBazaar or PaisaBazaar. For tax queries, ClearTax is a valuable resource.