1. What is EMI?

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, this allows you to convert large purchases into manageable monthly payments.

2. How EMI Calculation Works

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 would pay off the loan over the specified period with interest.

3. Understanding the Formula

Details: The numerator calculates the monthly interest on the outstanding principal, while the denominator accounts for the compounding effect over the loan tenure.

4. Using the Calculator

Tips: Enter the principal amount in Rs, annual interest rate in percentage, and loan 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 EMI?
A: SBI credit card EMI interest rates typically range from 12% to 24% per annum, depending on the card type and promotion.

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 amount) 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 my credit limit?
A: The principal amount is blocked from your available credit limit and gets released as you make EMI payments.

Q5: What happens if I miss an EMI payment?
A: Late payment fees will apply and it may negatively impact your credit score. Repeated misses may lead to higher penalty interest rates.