A credit card has numerous features and benefits to offer. But not everyone is well acquainted with the various fees and charges like the minimum amount due mentioned in their monthly credit card statement. So if you have an SBI credit card, here’s everything that you need to know about the minimum amount due on the card (MAD).
The minimum amount due is the minimum amount that you need to pay towards your SBI credit card account to avoid late payment charges. On the other hand, the total amount due on your SBI credit card is the sum of all the expenses on your credit card during that particular billing cycle.
Paying the total amount due implies that you don’t have to pay any extra charge. You will continue to benefit from the interest-free period. Whereas, if you pay the minimum amount due, you will carry forward a balance. This facility is known as revolving credit and will attract interest. Any subsequent purchase made on the card will also attract interest from the date of purchase.
The minimum amount due on your SBI credit card is 5% of the total outstanding amount. However, if there is any previous balance from an earlier statement that has been carried forward, it would also be included in the minimum amount due.
It is highly recommended that as far as possible, you should pay the entire outstanding amount on your SBI credit card. This has several benefits that would help you immensely in the long run. Even if you aren’t able to pay the entire outstanding amount, try to pay an amount which is close to it.
If you think that paying only the minimum amount due in all your statements, which is usually just a small percentage of the total amount, is sufficient, you are very wrong. Paying the minimum amount once or twice is fine, but ensure that this doesn’t turn out to be a regular practice.
Any payment received against the outstanding on your SBI credit card would be first adjusted against the minimum amount due. Once the entire minimum amount due is paid, it would then be adjusted against other categories like fees and charges, interest charges, and balance transfer outstanding.
There are 3 prime reasons why you shouldn’t think about paying just the minimum amount on your SBI credit card
|If the statement balance is||Late payment charges|
|Less than Rs.200||NIL|
|Between Rs.200 to Rs.500||Rs.100|
|Between Rs.500 to Rs.1,000||Rs.400|
|Between Rs.1,000 to Rs.10,000||Rs.600|
|Between Rs.10,000 to Rs.25,000||Rs.800|
Not paying even the minimum amount due on your SBI credit card is a grave mistake that you could make when it comes to maintaining a credit card. Apart from having to pay the late payment fees, if you continue to avoid paying even the minimum amount due, you would receive repeated messages from the bank asking you to make the payment. It may also engage a third party to recover the payment that you owe. If you still don’t make the payment, it would resort to more forceful ways of recovery and might even block your credit card for non-payment of the dues. The bank would also report CIBIL about this incidence and hence your credit score would drop.
It’s certain that you are going to pay much more than the total outstanding amount on your SBI credit card if you habitually pay only the minimum amount due on it.
For any clarification regarding the minimum amount due on your SBI credit card, you can call the SBI credit card customer care by dialing 1800 180 1290 and sharing your concern.
Any mode of payment used to pay the total outstanding amount due on your SBI credit card can also be used to pay the minimum amount due on it. These include both online and offline methods like NFET, auto debit, payment via SBI mobile app, SBI ATM, over-the-counter payment and many more.
Apart from all the applicable taxes, the EMI for any loan that you have taken against your credit card would be included in the minimum amount due on your SBI credit card. This process would continue until the entire loan amount along with the interest has been repaid.
Yes, the process of calculation of the minimum amount due mentioned here is common to SBI credit cards. In any case of an exception, you would be informed by the bank.
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