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, EMIs allow you to convert large purchases into smaller 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 its term, including both principal and interest components.

3. About SBI Credit Card EMIs

Details: SBI Credit Cards offer EMI conversion options for both purchases and outstanding balances, with tenures typically ranging from 3 to 60 months. Interest rates vary based on product type and promotional offers.

4. Using the Calculator

Tips: Enter the principal amount (purchase value), annual interest rate (check your card's current rate), and desired 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: Rates typically range from 12% to 24% annually, but promotional offers may have lower rates.

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

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

Q4: How does EMI affect my credit limit?
A: The principal amount is blocked from your available credit limit and released gradually as you make payments.

Q5: Can I convert existing purchases to EMI?
A: Yes, SBI allows conversion of eligible past transactions within a specified period (usually 30-90 days from purchase).