1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. For SBI credit cards, this applies when you convert your purchases into EMIs.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (Rs)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that includes both principal and interest components.

3. Understanding EMI Components

Details: Each EMI payment consists of both interest and principal repayment. Initially, a larger portion goes toward interest, with the principal portion increasing over time.

4. Using the Calculator

Tips: Enter the principal amount in Rs, annual interest rate in percentage, and tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for SBI credit card EMIs?
A: SBI credit card EMIs typically range from 12% to 24% annual interest, depending on the product and tenure.

Q2: Are there any processing fees for converting to EMI?
A: SBI may charge a one-time processing fee (usually 1-2% of the principal) for converting purchases to EMIs.

Q3: Can I prepay my SBI credit card EMI?
A: Yes, but prepayment charges may apply. Check with SBI for current prepayment policies.

Q4: How does EMI affect my credit score?
A: Timely EMI payments can help build a good credit history, while missed payments can negatively impact your score.

Q5: Can I convert any purchase to EMI?
A: Most purchases above a minimum amount (typically Rs. 2,500-5,000) can be converted to EMIs, subject to bank approval.