Credit card updates: SBI Card hikes charges on these cards from November 1; check details

Credit card charges: SBI Card has raised the finance charges on all unsecured SBI Credit Cards, as per the official website. However, this change does not apply to Shaurya, Defense. The charges on utility bill payments, finance charges, rewards caps, and transaction fees will be altered. The new rates will be effective from November 1, 2024. The revised finance charges will be 3.75% per month on all unsecured SBI Credit Cards starting on November 1, 2024. The current finance charges are up to 3.50% per month (42% per annum) from the transaction date, as stated on the SBI Card website.

Details on finance charges

Finance charges are to be paid at the monthly interest rate on all transactions, including unpaid EMI installments, from the date of the transaction if the cardholder opts not to pay their full balance. Additionally, finance charges are applicable on all cash advances taken by the cardholder until they are fully repaid. 
Unsecured credit cards, as opposed to secured cards, do not necessitate collateral or a security deposit. This change could potentially affect a substantial portion of users who depend on these cards for their daily transactions.

Please note that finance charges on cash advances are imposed from the date of the transaction until the total payment is made. A sample calculation is provided on the SBI Card website using a 3.5% interest rate.

Finance charges are incurred from the previous statement date unless there is a non-interest bearing retail balance outstanding, in which case the finance charge will be applied from the transaction date.

If the current statement has no remaining balance and the retail balance is paid in full by the due date, no finance charges will be applied to those balances.

Utility charges

Beginning November 1, 2024, SBI Card will implement a 1% surcharge on utility bill payments made with SBI credit cards that exceed Rs 50,000 in a single billing cycle. This fee will be applicable to payments for essential services such as electricity, gas, and water.

On the other hand, if the total utility bill payments are less than Rs 50,000 in the same billing cycle, no extra charges will be imposed, ensuring that smaller payments are not affected by this surcharge.