1. What is EMI?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. For credit cards, EMI allows you to convert large purchases into manageable monthly payments.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal amount (loan amount in INR)
• \( R \) — Monthly interest rate (APR/12 as decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment

Example: For ₹50,000 at 14% APR for 12 months:
R = 14%/12 = 1.1667% = 0.011667 monthly
EMI = [50000 × 0.011667 × (1+0.011667)^12] / [(1+0.011667)^12 - 1] = ₹4,487

3. Understanding SBI Credit Card EMI

Details: SBI Card offers EMI conversion on purchases with interest rates typically ranging from 12% to 40% APR depending on card type and tenure. Processing fees may apply.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (APR) in percentage, and tenure in months (3-72 months typically). The calculator will show monthly EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum amount for EMI conversion in SBI Card?
A: Typically ₹2,500 or ₹5,000 depending on the merchant and offer terms.

Q2: Are there any charges for converting to EMI?
A: SBI Card may charge a processing fee (usually 0.5-2% of principal) plus GST.

Q3: Can I prepay my EMI?
A: Yes, but prepayment charges of 2-3% may apply on outstanding principal.

Q4: How does SBI Card calculate interest?
A: Interest is calculated monthly on reducing balance as shown in the formula.

Q5: What happens if I miss an EMI payment?
A: Late payment fees (up to ₹1,300) and additional interest will apply, and it may affect your credit score.