Work out the EMI and the true cost of buying an AC or water heater on instalments, including processing fees on 'no-cost EMI' offers.
How to use it. Enter the amount you will finance (price after any down payment), the interest rate the card issuer or lender states, the tenure and the processing fee. Card EMIs and consumer durable loans often also add GST on the interest and fee, so include that in the fee field if you know it.
Formula. The tool uses the standard reducing-balance EMI formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the amount, r the monthly rate and n the number of months. Total paid = EMI × n + fees.
Worked example (illustrative). ₹45,000 over 12 months at 14% a year gives an EMI of roughly ₹4,040 and total interest of about ₹3,490, plus a ₹199 fee.
'No-cost EMI'. Under such offers the interest is usually offset by a discount on the price, so you pay roughly the price you would have paid upfront without that discount. Check whether the discount is actually given on the invoice, whether a processing fee and GST on interest apply, and whether paying in full would get you a bigger cash or card discount. To test an offer, enter the interest rate stated in the loan terms and compare the total paid with the best upfront price.
Limits. Rates, fees and offers vary by lender and card. Missing an EMI can bring late fees and affect your credit record. Figures are illustrative.
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