Nowadays, the process of applying for an SBI credit card, also known as SBI Card, has been streamlined, making it more accessible to many. The allure of various benefits often prompts individuals to seek out an SBI Card. Nonetheless, it’s crucial to familiarize yourself with the array of fees, charges and changes associated with it before initiating the application process.
SBI credit card changes in April
SBI Card has made changes to its rewards program for select credit cards. From April 1, 2024, specific cards will no longer earn reward points on rent payments. Additionally, the ability to collect reward points for rent payments on these cards will cease by April 15, 2024.
As per the information provided on the SBI Card website regarding interest calculation, “Minimum Amount Due (MAD) definition will be as follows: Total GST + EMI amount + 100% of Fees/Charges + 5% of [Finance Charge(if any) + Retail Spends and Cash Advance (if any)] + Overlimit Amount (if any)”
“In case 5% of (Finance Charge + Retail Spends and Cash Advance) is less than Finance Charges, then MAD calculation will be Total GST + EMI amount + 100% of Fees/Charges + 100% of Finance Charges + Overlimit Amount (if any)”
Fees and charges levied on the SBI Credit Card
Annual Fees & Renewal Fees
The Yearly/Annual fee is a singular payment. Customers must pay a one-time fee ranging from Rs.0 to Rs.9,999, along with applicable taxes, to access the credit card. This annual charge will be debited directly from the cardholder’s account and will appear in the monthly card statement.
The annual renewal fee is levied each year and falls within the range of Rs.0 to Rs.9,999, along with applicable taxes. This amount may differ based on individual customers and the specific variants of the card.
Also Read: IDFC First Bank Credit Card benefits changed. All details here
Cash Advance Fees
SBI Card imposes a transaction fee equivalent to 2.5% of the withdrawal amount or Rs 500, whichever surpasses the other, when utilizing the credit card for cash withdrawals at both domestic and international ATMs.
Cash Payment fees
SBI cardholders have the option to settle their outstanding balances at designated State Bank of India (SBI) branches, subject to a service charge of Rs 250 plus applicable taxes. To avail of this service, cardholders need to specify their credit card number and the amount on the payment slip and submit it at the branch counter. Upon payment, cardholders will receive an acknowledgment receipt.
In contrast, KVB SBI Cardholders can make payments at selected Karur Vysya Bank (KVB) branches without incurring any additional fees.
Also Read : SBI Rupay Card Features and Benefits for UPI Users
Finance Charges
If the customer doesn’t pay their balance in full, SBI cardholders must pay the monthly interest rate on all transactions, including unpaid EMI instalments, as well as finance charges on cash advances until repayment.
Currently, the finance charges amount to up to 3.50% per month (42% per annum) from the transaction date.
Interest Free Period
The grace period for interest-free credit extends between 20 to 50 days, contingent upon the merchant’s submission of claims. However, this provision does not apply if the balance from the preceding month remains unpaid or if the Cardholder has withdrawn cash from an ATM.
Overlimit Fees
If the outstanding amount exceeds the SBI card limit, the system will impose an overlimit fee, calculated as 2.5% of the excess amount or Rs 600, whichever is higher.
Late Payment Fees
- Outstanding amounts from Rs.0 to Rs.500 on the payment date incur no fee.
- A charge of Rs.400 applies for outstanding amounts exceeding Rs.500 up to Rs.1,000.
- For outstanding amounts exceeding Rs.1,000 and up to Rs.10,000, the charge is Rs.750.
- Amounts exceeding Rs.10,000 up to Rs.25,000 incur a charge of Rs.950.
- For outstanding amounts exceeding Rs.25,000 up to Rs.50,000, the charge is Rs.1,100.
- If the Minimum Amount Due (MAD) is missed for two consecutive cycles, an additional late payment charge of Rs.100 will be applied, and this charge will persist until the MAD is settled.
Payment Dishonor fee
To facilitate this, SBI cardholders will incur a fee equivalent to 2% of the payment amount, with minimum charges set at Rs 500.
Card Replacement
If a card replacement is necessary due to loss, theft, or damage, the customer will be subject to a fee ranging from Rs 100 to Rs 250 (or Rs 1500 for Aurum).
Foreign Currency Transaction fee
The Foreign Currency Transaction fee is set at 3.5% for all cardholders, except for Elite and Aurum Cardholders, who enjoy a reduced transaction charge of 1.99%.
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