SBI cardholders to pay more monthly: New rules for minimum amount due

SBI card new rule: Company changes the way it calculates the least amount a user must pay as credit card bill to avoid penalties

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SBI Card customers may soon pay more as monthly credit card bills after the company last week changed the way it calculates minimum amount due, the least amount a user must pay to avoid penalties. The revision could lead to quicker bill repayment, likely weighing on users who pay the minimum amount to manage cash flow.

 

What’s changing in the minimum amount due?

 

According to a notification by SBI Card, minimum amount due will now include a wider set of components:

 

• 100 per cent of GST 
• 100 per cent of the EMI amount (including merchant EMIs and loan-on-card) 
• 100 per cent of fees and other charges 
• 100 per cent of finance charges (interest)

 

Any over limit amount

Plus 2 per cent of the remaining outstanding balance

 

Previously, only a portion of the EMI and charges were included, allowing customers to pay a smaller sum and roll over the balance. The new formula significantly raises the minimum monthly outgo for users with high dues or EMIs.  Calculate EMI: EMI Calculator Tool

 

Revised order of payment settlement

Along with the minimum amount due change, SBI Card is also updating the order in which payments are adjusted:

 

1. GST 
2. EMI amount 
3. Fees and charges 
4. Finance charges 
5. Balance transfers 
6. Retail spends 
7. Cash advances

 

This revised sequence ensures that interest and penalty-generating components are cleared first, reducing interest compounding for cardholders in the long term.

 

What it means for customers

 

Higher monthly payout: If you’ve been paying only the minimum due, expect that figure to rise significantly.

 

Faster debt clearance: As EMIs and finance charges are cleared first, your principal balance may reduce quicker.

 

Financial discipline: The changes may push users to manage spends more prudently, especially those who revolve balances.

 

Less debt trap risk: Clearing interest components first helps prevent a ballooning debt cycle.