SBI Credit Cards: The official website for SBI Card says that starting November 1, 2024, finance charges will go up on all unsecured SBI credit cards. One card that won’t change, though, is Shaurya, Defense.
According to Business today, Finance charges for all unsecured SBI credit cards will go up to 3.75% per month from the current highest of 3.50% per month, which is equal to 42% per year, depending on the date of the transaction. In addition to these changes, transaction fees, reward caps, and fees for paying your utility bills will also be changed.
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New finance charges
If the cardholder chooses not to pay their entire balance, finance charges must be paid at the monthly interest rate on all transactions, including unpaid EMI installments, from the date of the transaction. Furthermore, until all cash advances are paid back in full, finance charges are applied to all of them.
Unlike secured credit cards, unsecured credit cards do not require a security deposit or collateral. A significant percentage of users who rely on these cards for their everyday transactions may be impacted by this change.
Please be aware that finance fees associated with cash advances are assessed from the transaction date until the full amount is paid. The SBI Card website offers an example calculation with a 3.5% interest rate.
Unless a non-interest bearing retail balance is outstanding, in which case the finance charge will be applied from the transaction date, finance charges are incurred from the previous statement date.
No finance charges will be applied to the retail balance if there is no balance left on the current statement and the retail balance is paid in full by the deadline.
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Utility charges
Starting November 1, 2024, utility bill payments made with SBI credit cards that exceed Rs 50,000 in a single billing cycle will incur a 1% surcharge.
This fee will apply to payments for services such as gas, electricity, and water. However, if the total amount of utility bill payments within the same billing cycle is less than Rs 50,000, no additional fees will be charged, ensuring that smaller payments remain unaffected by this surcharge.
