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Can I Buy Gold Online with an SBI Credit Card on EMI?

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Highlights

  • How to Buy Gold Online with an SBI Credit Card on EMI?
  • Know about the process of EMI conversion and the interest charges applicable to it in this post

Since the time credit cards have come into our lives, buying those things that were used to be out of our reach has become easier. With the help of a credit card, an individual can buy something he or she wants to and repay the amount later. There are so many things that individuals can buy with their credit cards such as electronic items, clothes, accessories, etc. But every time someone mentions the things you can buy with your credit card, an individual always asks if he or she can buy gold with a credit card. Well, the answer to this question is definitely Yes!

You can buy gold online with your credit card and repay it via easy monthly installments according to your convenience. There are so many banks that provide credit cards to customers. But being the top bank of India, State Bank of India (SBI) provides a wide range of credit cards loaded with amazing cashback offers and reward programs. Having an SBI Credit Card in your pocket is considered to be a status symbol among people because of its seamless services.

In this article, we will be telling everything about the process by which you can buy Gold with an SBI credit card, that too on EMI. So, if you want to gain more knowledge about it, keep reading!

What is the Process to Buy Gold Online with an SBI Credit Card?

Individuals in our country consider Gold to be a very precious asset. That’s why there are so many people who buy gold jewellery online so that it could be useful in their difficult times. With adequate gold in your hand, you can get upto 90% of its total value as the loan amount with the Gold Loan facility. But before that, we need to understand the process of buying the gold online with an SBI credit card.

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There are so many platforms available online from where you can buy gold jewellery without any problem. Some of them are Tanishq, PC Jewellers, Kalyan Jewelers, Blue Stone, Malabar Jewellers, etc. A credit card can be highly useful to you in those times when you want to purchase some gold ornaments from one of such platforms but don’t have sufficient cash in hand. In such situations, you can make the full payment (within your credit limit) from your credit card and repay the amount later via Equated Monthly Installments (EMI).

You must keep this fact in mind that each credit card has a predefined credit limit and you cannot purchase anything above the existing limit of your card. Suppose that the overall credit limit is INR 80,000 and you have already made a purchase of INR 20,000 on buying the TV you liked. Then, your existing credit limit is INR 60,000.

When you opt for the EMI facility with your credit card, you will need to pay a certain interest amount on the used amount with a credit card. The interest rate on the SBI credit card would be around 14% to 15% per annum. But if you decide to revolve the credit amount without EMI, the interest rate will be around 3.35% per month (40.2% per annum) which could be quite costly for you.

To buy the Gold online with your SBI credit card on EMI, you will need to pay the full amount (within your credit limit) on the online website with your card. After paying the full amount, you can convert this transaction into easy monthly installments of a fixed tenure of 6/ 9/ 12 or more months. This can be done by yourself via Netbanking, Mobile Banking, or by calling to the SBI customer care. SBI will charge you a one-time processing fee for availing this EMI facility.

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You can choose the tenure according to your preference. This EMI will be a part of your principal and interest amount as we told that lenders charge interest on the transaction made with a credit card.

How Much EMI Would You Need to Pay on Buying Gold with a Credit Card?

We are providing you an example with which you would get an idea about the EMI amount payable on buying gold online with your SBI credit card. Suppose you purchased a golden ring worth INR 70,000 with your SBI credit card. Now, you want to convert this transaction into easy installments of 9 months. The interest rate charged on the transaction is 14% per annum. So, what will be your EMI amount? To know the answer, you can look at the below table.

Transaction AspectsDetails
Total AmountINR 70,000
Rate of interest14% per annum
Tenure9 months
EMI AmountINR 8,239
Interest OutgoINR 4,146
Total Amount PayableINR 74,146

So, you can see that you will need to pay INR 8,239 per month for 9 months to repay the amount. The interest outgo will be INR 4,146 during this period. You can also look at the interest amount and the balance amount at different points in your tenure with the help of the table mentioned below. Check it out!

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Personal Loan Interest Rates July 2020
Fullerton India14.00% - 33.00%
HDFC Bank10.75% - 21.45%
ICICI Bank10.99% - 18.49%
IndusInd Bank11.25%
Kotak Bank10.99% - 20.99%
RBL17.50% - 24.00%
Standard Chartered Bank11.50% - 18.00%
Tata Capital10.99% - 18.00%
Home Loan Interest Rates July 2020
Axis Bank7.75% - 8.55%
Bank of Baroda6.85% - 7.85%
Citibank8.20%
HDFC6.95% - 8.00%
ICICI Bank7.45% - 8.55%
Indiabulls Housing Finance Limited8.80% - 11.05%
Kotak Bank7.40% - 9.70%
LIC Housing7.40% - 8.85%
Piramal Capital & Housing Finance9.00% - 9.10%
PNB Housing Finance8.60% - 9.45%
Reliance Home Finance8.75% - 14.00%
State Bank of India/SBI6.95% - 7.60%
Tata Capital9.20% - 9.35%