1. What is EMI Calculation?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month for a specified number of months to repay a loan. For SBI credit cards, this helps convert large purchases into manageable monthly payments.

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 / 12 / 100)
• \( N \) — Loan tenure in months

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

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, comparing credit card options, and avoiding payment defaults that can affect your credit score.

4. Using the Calculator

Tips: Enter the principal amount (purchase amount), annual interest rate (check your SBI card terms), and repayment period in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for SBI credit cards?
A: SBI credit card interest rates typically range from 1.5% to 3.5% per month (18% to 42% annually), depending on the card type and customer profile.

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

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

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

Q5: Is GST applicable on EMI interest?
A: Yes, GST (currently 18%) is applicable on the processing fee and interest component.