Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • SBI Credit Card Interest Rates

    SBI offers numerous credit cards exclusively designed to suit the requirements of their cardholders. SBI credit cards 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 the payments are done on time, interest will not be applicable. However, if partial payments are made, a certain interest rate is charged on the closing amount on a monthly basis until the amount is paid in full.

    What Is The SBI Bank Credit Card Interest Rate?

    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.

    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. 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. 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.

    Interest Rate Charged on SBI 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

    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.

    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.

    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. After which, the bank will have to report the default status to credit bureaus which will affect your credit score.

    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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