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, EMI options allow 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 will completely pay off the loan (principal + interest) over the specified tenure.

3. Understanding SBI Credit Card EMI

Details: SBI offers EMI conversion on credit card purchases either at the time of purchase (instant EMI) or later (regular EMI conversion). Interest rates vary based on the product category and tenure selected.

4. Using the Calculator

Tips: Enter the principal amount (purchase amount), annual interest rate (check current SBI rates), and loan tenure in months. The calculator will show your monthly EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

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

Q2: Are there any processing fees for EMI conversion?
A: SBI may charge a processing fee (usually 0.5% to 2% of the principal) for converting purchases to EMI.

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

Q4: How does EMI affect my credit limit?
A: The EMI amount blocks your credit limit proportionally each month as you make payments.

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