Credit Card Calculator for

SBI

SBI Credit Card EMI Calculator

The State Bank of India credit cards can be used for a diverse range of financial needs. Be it lifestyle expenses, shopping, travel, or medical emergencies, credit cards come in handy.

Cardholders can use the credit card within the pre-approved limit and repay the due amount as per the date decided in the billing cycle.

Failure to pay the outstanding amount by the due date can result in a penalty or late fee. The total credit card outstanding amount can also be converted into equated monthly instalments (EMIs) for clearing the dues.

What is an SBI Credit Card EMI Calculator?

The SBI Credit Card EMI Calculator is an online financial tool used to calculate the EMI to be paid for a credit card's outstanding balance. It simplifies complex calculations to find out the monthly financial commitment involved in repaying a debt.

The SBI Credit Card EMI Calculator enables borrowers to compare various amounts, interest rates, and tenures to obtain the best deal.

How to Use the SBI Credit Card EMI Calculator?

1. Go to the ‘SBI Credit Card EMI calculator’ section.
2. Enter the outstanding amount.
3. Choose the repayment tenure.
4. Select the interest rate for your credit card.
5. Your EMI will be displayed on the screen.

Factors Affecting SBI Credit Card EMI

• The principal amount, interest rate, and repayment term influence the EMI for an SBI credit card outstanding due.
• A higher outstanding amount or interest rate will result in larger EMIs. A longer repayment tenure results in lower EMIs but an overall higher interest cost.
• The consistency of EMI can also be impacted by the type of interest rate. Fluctuating rates lead to irregular payments depending on the market condition.
• Any prepayment or part payment can also alter your repayment tenure and EMI.

Benefits of Using an SBI Credit Card EMI Calculator

• By showing the exact EMI amount required, the SBI Credit Card EMI Calculator helps borrowers plan their monthly budget.
• The EMI calculator allows users to compare different offers by adjusting amounts, interest rates, and tenures.
• The tool provides quick calculations and a detailed amortisation schedule.
• It performs complex calculations within seconds to churn out accurate results.
• The tool also shows how extra payments or prepayments affect the repayment tenure and overall interest paid.

SBI Credit Card Interest Rates and Tenure

SBI provides different options for interest rates and repayment periods for credit card EMIs, depending on its type:

• Instant EMI: Interest rates range from 3.35% to 40.2% per annum.
• Tenure: The SBI credit card EMIs can range from 6 to 36 months.
• Interest-Free Period: SBI offers a range from 20 to 50 days depending on the type of credit card.

Understanding SBI Credit Card EMI and Its Components

In an SBI credit card EMI, the total payment is split into two components:

• Total Debt Amount Component: The part of the EMI that repays the original due amount.
• Interest Component: Covers the cost of borrowing and is calculated on the outstanding principal balance.

At the start of repayment, the interest component is higher, with most of your EMI going towards it. Over time, the principal repayment increases as the interest portion decreases.

Step-by-Step Guide to Calculate SBI Credit Card EMI

The EMI for each type of loan is calculated using the formula:

E = [P × R × (1 + R)^N] ÷ [(1 + R)^N - 1]

Where:

• P – Total transaction amount or outstanding credit card balance converted into EMIs.
• R – The interest rate charged by the credit card issuer.
• N – Duration for which you will pay the EMIs.

Common Mistakes to Avoid While Using SBI Credit Card EMI Calculator

• Enter correct values for amount, interest rate, and tenure. Even a minor typing error can disrupt the calculation.
• Consider other fees that may not be included in the calculation.
• Try different tenures and credit card balance amounts to reach an EMI that won’t be a financial burden as per your monthly budget.
• Check the prepayment or foreclosure conditions for credit card EMIs.

Conclusion

By using an SBI Credit Card EMI Calculator, you can make quick decisions and plan your finances better. The calculator tells you how much amount you need to pay each month in advance. It also helps you to choose a suitable EMI amount by converting the outstanding balance.