1. What is EMI Calculation?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. For SBI credit cards used for car purchases, this calculation helps plan repayments.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula accounts for compound interest over the repayment period to calculate equal monthly payments.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers understand their repayment obligations, plan finances, and compare different loan options before committing to a car purchase using SBI credit card.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (APR) in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical APR for SBI credit card car loans?
A: APR typically ranges from 36% to 48% for SBI credit card EMI conversions, but check current rates with the bank.

Q2: Are there any processing fees for EMI conversion?
A: SBI usually charges a one-time processing fee of 1-2% of the principal amount for EMI conversion.

Q3: Can I prepay the EMI loan?
A: Most banks allow prepayment but may charge foreclosure fees (typically 2-5% of outstanding amount).

Q4: How does EMI affect credit score?
A: Timely EMI payments improve credit score, while missed payments negatively impact it.

Q5: Is insurance required for car purchases on EMI?
A: Comprehensive insurance is typically mandatory when financing a car purchase, regardless of payment method.