Minimum Amount Due in SBI Credit Card

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).

Difference Between SBI Credit Card Total Amount Due and Minimum Amount Due

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.

How is the Minimum Amount Due on my SBI Credit Card Calculated?

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.

What happens when only the Minimum Amount Due is Paid on my SBI Credit Card?

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.

Reasons Why Paying only the Minimum Amount Due on your SBI Credit Card isn’t Good for you

There are 3 prime reasons why you shouldn’t think about paying just the minimum amount on your SBI credit card

1. The accumulation of high interests: If you continue to pay only the minimum amount due for a few months, the interest charges that accumulate during this time is very high (around 3.35% per month) as compared to the total outstanding amount. So you would end up paying a very high amount of money which would imply that instead of gaining from using your credit card, you would lose a large sum of money.
2. The impact in your credit score: If you repeatedly fail to pay the total outstanding on your credit card, your credit score may take a hit. This, in turn, would make it difficult for you to get a loan in the future as lenders depend on the credit score to assess the creditworthiness of an individual.
3. No interest-free period: One of the biggest benefits of using a credit card is the interest-free period of up to 50-55 days that you enjoy on your credit card expenses. However, you can avail this interest-free period only when you pay the full outstanding amount on your card. So if you pay only the minimum amount due, you are not going to get the interest-free period and you would be paying interest from the date of purchase itself.

SBI Credit Card Late Payment Charges for Non-payment of the Minimum Amount Due

What if the Minimum Amount Due on the SBI Credit Card is Not Paid?

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.

FAQs on Minimum Amount Due on SBI Credit Card

1. How much more do I end up paying if I pay only the minimum amount due on the SBI credit card?

   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.

2. How do I contact the bank if I need any clarifications regarding the minimum amount due on my SBI credit card?

   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.

3. What are the ways to pay the minimum amount due on my SBI credit card?

   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.

4. What other charges does the minimum amount due on my SBI credit card include?

   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.

5. Is the process to calculate the minimum amount due same for all SBI credit cards?

   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.