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    SBI Credit Card Interest Rates

    State Bank of India (SBI) is one of the leading Indian multinational public sector banks in India. Since its incorporation, the bank has offered a wide range of financial products with excellent features and benefits. Headquartered in Mumbai, SBI offers numerous credit cards exclusively designed to suit the requirements of their cardholders.

    SBI credit cards are categorised into lifestyle, reward, shopping, travel, and fuel cards. Each card is designed for a particular group of cardholders based on their spending habits. All credit card providers charge an interest rate on the balance carried forward on a credit card so does SBI.

    If you use an SBI credit card and pay the total outstanding amount within a particular time, SBI will not charge an interest. However, if you make partial payments on your credit card balance and carry forward a certain amount to the next billing payment, SBI will charge an interest rate on the closing balance on a daily basis until the balance is paid in full.

    What Is The SBI Bank Credit Card Interest Rate?

    Also known as “Finance Charges”, SBI credit card interest rate is the rate charged by SBI on the revolving credit borrowed by you using the card if the total amount due is not paid on or before the due date.

    Generally, the interest rate charged by SBI can go up to 3.35% per month or 40.2% per annum. However, the interest rate differs from card to card and it is best to read your credit card statements or get in touch with SBI for more information.

    How Are Credit Card Interest Rates Calculated By The SBI Bank?

    SBI offers a grace period or interest-free period on credit card payments. Usually, the grace period or the interest-free period offered by SBI can range from 20 to 50 days depending on the type of credit card you hold. However, if you haven’t cleared the previous month’s balance in full or availed the cash advance facility, the interest-free period is not applicable.

    If you use your SBI credit card and pay the entire due amount within the due date or the grace period, SBI will not charge interest on the amount used. However, if you are unable to make the total outstanding amount within the due date and make a partial payment or pay the minimum due amount and carry forward the remaining due amount into the next billing cycle, SBI will charge an interest rate on the revolving credit on a daily basis from the time you availed the funds until you pay the total due amount.

    Most SBI credit cardholders do not understand how the credit card interest rate is calculated and are often shocked to see their monthly credit card statements. To understand how the interest rate is calculated on your SBI credit card, you should understand that the interest rate is charged on the closing balance amount from the date you made the transaction until the amount is paid in full. SBI charges an interest rate on both your Equated Monthly Instalment (EMI) transactions and non-EMI transactions. As mentioned earlier, the interest rate charged by SBI can go up to 3.35% per month or 40.2% per annum.

  • For example:
  • Let us assume that your credit card statement is generated on the 2nd of every month. Your billing cycle will be from 3rd April to 2 May 2018. If you used your credit card for retail purchases on the 15th of April for Rs.500 and made an online purchase on 20 April for Rs.600, the total due amount that will appear on your credit card will be Rs.1,100. You will now be required to pay the minimum due amount or the total due amount within the due date which will be on the 22 May. If you choose to make a partial payment of Rs.500, SBI will charge the effective interest rate on the balance and add it to the total outstanding balance.

    If the effective interest rate is 3.35% per month, the interest rate will be calculated as follows:

    • Interest charged on the transaction amount Rs.500 will be calculated from the transaction date that is the 15 of April to 22 May which is for 39 days. So the formula used will be (3.35X12) X (39/365) X500/100 = Rs.21.48.
    • Interest charged on the transaction amount Rs.600 will be calculated from the transaction date that is the 20 of April to 22 May which is for 34 days. So the formula used will be (3.35X12) X (34/365) X600/100 = Rs.22.47.
    • Interest charged on the balance amount Rs.600 will be calculated from 22 May to 2 June which is for 10 days. So the formula used will be (3.35X12) X (10/365) X600/100 = Rs. 6.61.
    • Therefore the total interest charged is Rs.50.56.

    So, the interest rate is calculated on every transaction separately. Please note that during promotional campaigns, SBI issues credit cards with a low interest rate. Therefore, it is very important you know the monthly and annual interest rate charged on your card.

    The Interest Rate Charged On Overdue Credit By Sbi Bank On Various Credit Cards

    Credit Card Monthly Rate Annual Rate
    For all unsecured SBI credit cards 3.35% per month 40.2% per annum
    For all secured SBI credit cards 2.25% per month 30% per annum

    Which SBI Bank Credit Card Transactions Attract Interest Charges?

    SBI will not charge you interest if you pay the total balance within the due date. Non-payment of the total due amount within the due date will attract interest. Apart from that, the below transactions can also attract interest charges:

    • When you don’t pay the minimum due amount within the due date, late fees and other charges will be levied.
    • When you use your credit card to withdraw cash. Cash advances attract a high rate of interest.
    • When you use your credit card in an international location, additional finance charges will be levied.

    SBI Bank Credit Card Interest-free Period

    Also known as a grace period, an interest-free period is a period offered by SBI to their credit cardholder. If the cardholder pays the outstanding amount within this period, the interest rate will not be levied. As mentioned earlier, the grace period or the interest-free period offered by SBI can range from 20 to 50 days depending on the type of credit card you hold.

    Faqs On SBI Bank Credit Card Interest Rate

    1. Will SBI charge a late fee if I make the minimum due payment and not the total outstanding balance?
    2. No. Interest rate will only be levied if you do not pay the minimum due amount within the due date. SBI charges a late fee of Rs.100 if the total outstanding balance is between Rs.200 to Rs.500. If the total outstanding balance is between Rs.500 to Rs.51,000, SBI charges a late fee of Rs.400. If the total outstanding balance is between Rs.1,000 to Rs.10,000 and greater than Rs.10,000, SBI charges a late fee of Rs.500 and Rs.750 respectively. SBI will not charge a late fee if the total outstanding balance is between Rs.0 to Rs.200 even if you do not pay the minimum due amount on or before the due date.

    3. What should I do if I find discrepancies on my credit card statements?
    4. If you find any discrepancies, you will have to notify SBI within 30 days from the statement date. Once SBI is informed about the discrepancy, the charges may be reversed on a temporary basis and SBI will initiate an investigation. If the information provided by the cardholder is true, the amount will not be charged. However, if the discrepancy is found to be invalid, the charges will be reinstated in the next statement and you will be charged a Charge Slip Retrieval Fee of Rs.225 per charge slip.

    5. How do I contact SBI Customer Grievance Redressal?
    6. You can escalate all grievances to the Nodal Officer, PO Bag 28 - GPO, New Delhi - 110001. Alternatively, you can send an email to Nodalofficer@sbicard.com.

    7. What happens if I am unable to pay the credit card bill?
    8. If you default on your credit card bill, SBI will send you reminders from time to time to settle the total outstanding balance. SBI will give you a grace period of one month to settle all dues. If you are unable to make the payment within the grace period, SBI will report your default status to the credit reporting agencies in India which will affect your credit score. If you make a payment after your account is reported, SBI will withdraw the defaulter status but such changes will reflect after 45 to 60 days.

    9. What are the finance charges on cash advances?
    10. The finance charges for cash advances is 3.35% per month or 40.2% per annum for unsecured credit cards. For secured credit cards, SBI charges 2.5% per month and 30% per annum.

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