SBI Credit Card Interest Rate

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.

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.

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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:

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.

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:

• Utilize the interest-free period. This period gives you some leverage to repay your outstanding amount. 
• Make sure the entire amount is repaid.
• Avoid any cash advances unless it is a genuine financial emergency.
• Convert large amounts into EMIs.