Waring: 7.5% rate is used to calculate the monthly repayment amount. The above rate of interest translates to 13.57% p.a. reducing interest rate and is used to calculate the amortization schedule of Flexipay.
I received this super targeted email from SBICard yesterday which was mind blowing. SBI is ready to offer 7.5% interest rate on EMI conversion of a particular transaction of mine with 100% processing fee waiver if i convert Rs.50k or more to EMI. I received this offer on Air India SBI Credit Card which i received recently. I’ve been receiving couple of EMI offers from SBI on my other SBI Signature Card as well, but it was never as attractive as this one.
SBI Credit Card EMI Offer at 7.5% Rate of Interest
How the hell!! Even housing loans are anywhere around 9.5% and this looks so much fake (It is Fake number). Maybe they have some interesting business model on high value transactions. Its understood that there will be additional 15% service tax component on this interest rate but I still wonder!
I’ve never seen such kind of low interest rates in the industry ever and had always thought HDFC has the lowest interest rates on credit card with all its Insta loan and EMI offers that they refresh from time to time. The lowest with HDFC i’ve seen in past 2 years is 11.99% with 100% processing fee waiver.
Looks like SBI is now up in captivating the EMI on credit card market which HDFC is taking advantage since long time now.
Update: 7.5% (Flat interest rate) number is used to lure customers. The actual number is 13.57%(reducing rate of interest). Good enough, but not as good as HDFC’s 11.99% which i’ve even opted for once on my Dad’s card as mentioned in above link. Thanks for everyone who put some light on this via comments. I could see how easily SBI can make people fools 🙁
While the offer is eye catching, i received it when i don’t need it. Have you ever received such offers with attractive interest rates? Do share your experiences in comments below.