The interest rate on credit cards is one of the most important aspects of credit card charges that many credit card users usually don’t care about. Every credit card issuer, including the State Bank of India (SBI), levies interest charges on overdue payments of credit cards on a monthly basis. SBI credit cardholders must know the SBI credit card interest rate charged by the bank on unpaid credit card bills, which payments attract these charges, and how the bank calculates interest on credit cards.
SBI levies interest or finance charges at the monthly interest rate on all transactions including unpaid EMI instalments from the date of the transaction in case you choose not to pay your balance in full, and on all cash advances taken by you, till they are paid back.
If the cardholder makes partial or zero payment of the total amount due before the payment due date, i.e. the customer has an outstanding balance from the previous month(s) and in the current month, full payment of the total amount due is made before the payment due date then interest or finance charges will be levied on the closing balance till the payment date.
Currently, SBI levies finance charges up to 3.50% per month (42% per annum) from the transaction date. This charge is subject to vary at the discretion of SBI Cards & Payment Services Limited (SBICPSL). The payable finance charges are subject to the levy of applicable taxes and are debited to the credit cardholder’s account till the outstanding on the card is paid in full.
The minimum amount of interest charge levied on all transactions in the event of the non-payment of the balance in full within the payment due date, and on all cash advances taken by the user will be Rs. 25 each plus applicable taxes.
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SBI credit card charges are applied to the various services offered by the bank on its SBI credit cards, including cash withdrawal, minimum bill payments, balance transfer, taking loans, etc. Below is the list of SBI credit card fees and charges, including the SBI credit card annual fee, joining fee, interest rate, forex markup, late payment fee, cash advance fee, etc.
Credit Card Variant | Joining/Annual Fee |
SBI ELITE Credit Card | Rs. 4,999 |
SBI PULSE Credit Card | Rs. 1,499 |
Doctor's SBI Card (in association with IMA) | Rs. 1,499 |
SBI Card ELITE Advantage | Rs. 4,999 |
Doctor's SBI Card | Rs. 1,499 |
SBI CASHBACK Credit Card | Rs. 999 |
SBI Card PRIME | Rs. 2,999 |
Aditya Birla SBI Card SELECT | Rs. 1,499 |
Aditya Birla SBI Card | Rs. 499 |
OLA Money SBI Card | Nil |
Apollo SBI Credit Card | Rs. 499 |
SBI Card PRIME Advantage | Rs. 2,999 |
Tata Card SELECT | Rs. 2,999 |
Tata Card | Rs. 499 |
Paytm SBI Card SELECT | Rs. 1,499 |
Paytm SBI Card | Rs. 499 |
Fabindia SBI Card SELECT | Rs. 1,499 |
Fabindia SBI Card | Rs. 499 |
Lifestyle Home Centre SBI Card PRIME | Rs. 2,999 |
MAX SBI Card PRIME | Rs. 2,999 |
SPAR SBI Card PRIME | Rs. 2,999 |
Lifestyle Home Centre SBI Card SELECT | Rs. 1,499 |
MAX SBI Card SELECT | Rs. 1,499 |
SPAR SBI Card SELECT | Rs. 1,499 |
Lifestyle Home Centre SBI Card | Rs. 499 |
MAX SBI Card | Rs. 499 |
SPAR SBI Card | Rs. 499 |
SimplyCLICK SBI Credit Card | Rs. 499 |
SimplySAVE SBI Credit Card | Rs. 499 |
fbb SBI STYLEUP Card | Rs. 499 |
Central SBI Select+ Card | Rs. 2,999 |
Central SBI Select Card | Rs. 750 |
SBI Card Unnati | Nil |
SimplyCLICK Advantage SBI Card | Rs. 499 |
SimplySAVE Advantage SBI Card | Rs. 499 |
Shaurya SBI Card | Rs. 250 |
Shaurya Select SBI Card | Rs. 1,499 |
BPCL SBI Card OCTANE | Rs. 1,499 |
IRCTC SBI Card Premier | Rs. 1,499 |
IRCTC SBI Card (on RuPay platform) | Rs. 500 |
Etihad Guest SBI Premier Card | Rs. 4,999 |
Etihad Guest SBI Card | Rs. 1,499 |
BPCL SBI Credit Card | Rs. 499 |
Club Vistara SBI Card PRIME | Rs. 2,999 |
Club Vistara SBI Card | Rs. 1,499 |
Yatra SBI Card | Rs. 499 |
Air India SBI Signature Card | Rs. 4,999 |
Air India SBI Platinum Card | Rs. 1,499 |
IRCTC SBI Platinum Card | Rs. 500 joining fee & Rs. 300 annual fee |
PSB SBI Card ELITE | Rs. 4,999 |
PSB SBI Card PRIME | Rs. 2,999 |
PSB SimplySAVE SBI Card | Rs. 499 |
UCO Bank SBI Card ELITE | Rs. 4,999 |
UCO Bank SBI Card PRIME | Rs. 2,999 |
UCO Bank SimplySAVE SBI Card | Rs. 499 |
Central Bank of India SBI Elite Card | Rs. 4,999 |
Central Bank of India SBI Card Prime | Rs. 2,999 |
Central Bank Of India SimplySave SBI Card | Rs. 499 |
City Union Bank SBI Card PRIME | Rs. 2,999 |
City Union Bank SimplySAVE SBI Card | Rs. 499 |
Karnataka Bank SBI Card PRIME | Rs. 2,999 |
Karnataka Bank SimplySAVE SBI Card | Rs. 499 |
South Indian Bank SBI Platinum Credit Card | Rs. 2,999 |
South Indian Bank SimplySave SBI Card | Rs. 499 |
KVB SBI Signature Card | Rs. 4,999 |
Karur Vysya Bank - SBI Platinum Credit Card | Rs. 2,999 |
Karur Vysya Bank - SBI Card | Rs. 499 |
In addition to the joining and annual fees mentioned above, SBI also levies the charges mentioned below:
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SBI offers an interest-free period on credit card payments, usually ranging from 20 to 50 days, depending on the type of credit card.
For example:
Let us assume that your SBI credit card statement is generated on the 2nd of every month. In this case, your billing cycle will be from 5th March to 2 May 2023. Now, if you use your credit card for a retail purchase on 15th April for Rs. 500 and an online purchase on 20th April for Rs. 6,000, you will be required to pay either the minimum or total due amount within the due date, i.e. 2nd May. If you make a partial payment of Rs. 500, the bank will charge the applicable interest rate on the balance amount and add it to your total outstanding balance.
If the interest rate is 3.5% per month, then the bank will calculate the interest rate as follows:
Interest charged on Rs. 500 will be calculated from the transaction date, i.e. 5th March to 22nd April (for 49 days). The formula used by the bank will be (3.5X12) X (49/365) X 500/100 = Rs. 28.19.
On the transaction amount of Rs. 6,000, the interest charged will be calculated from the transaction date, i.e. 15th March to 22nd April (for 39 days). The formula used by the bank will be (3.5X12) X (39/365) X 6000/100 = Rs. 269.26.
Interest on the transaction amount of Rs. 90 will be charged between 5th March to 22nd April (for 49 days) and the formula used will be (3.5X12) X (49/365) X 90/100 = Rs. 5.07.
Now, on the balance amount of Rs. 6,175, the interest charged will be calculated from 22nd April to 2nd May (for 10 days). The formula used will be (3.5X12) X (10/365) X 6000/100 = Rs. 71.05.
Hence, the total interest charged is Rs. 373.57.
The credit card interest rate will be calculated on every transaction separately. During promotional campaigns, SBI also issues credit cards with low-interest rates. Therefore, it is advised to know the monthly and annual interest rates charged on your credit card.
Late payment charges will be applicable on SBI credit cards if the Minimum Amount Due (MAD) is not paid by the payment due date.
Below is the SBI late payment charges table according to the total outstanding amount:
Total Outstanding Amount | Late Payment Charges |
Rs. 0 - Rs. 500 | Nil |
Above Rs. 500 & up to Rs. 1,000 | Rs. 400 |
Above Rs. 1,000 & up to Rs. 10,000 | Rs. 750 |
Above Rs. 10,000 up to Rs. 25,000 | Rs. 950 |
Above Rs. 25,000 & up to Rs. 50,000 | Rs. 1,100 |
Above Rs. 50,000 | Rs. 1,300 |
An additional late payment fee of Rs. 100 will be levied on missing payment of MAD by the due date for two consecutive cycles. This fee will continue to levy for every payment cycle until the MAD is cleared.
Also Check: SBI Lifetime Free Credit Card
An interest-free period or grace period is a period offered by SBI to its credit cardholders. If the cardholder pays off the outstanding amount within this period, no interest rate will be levied. The interest-free credit period or grace period of SBI credit cards ranges from 20 to 50 days, subject to the submission of claims by the cardholder. However, the grace period is not applicable if the balance of the previous month has not been cleared entirely or if the cardholder has withdrawn cash from any ATM using the card.
You can avoid paying SBI credit card interest rates with the following tips:
Also Check: SBI Credit Card Customer Care Number
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No. The bank will levy interest rates only if you do not pay the minimum amount due within the due date.
The SBI Card ELITE comes with a joining and annual fee of Rs. 4,999.
If you could not pay your credit card bill, SBI will send you timely reminders to settle the total outstanding balance. If you do not clear your dues even after that, the bank may report the default status to credit bureaus which can affect your credit score.
The finance charges for SBI credit card cash advances are 3.5% per month or 42% per annum.
SBI offers an interest-free grace period of between 20 days to 50 days, depending on the credit card type you have.