SBI Credit Card Interest Rates

How is SBI Credit Card Interest Rate Calculated?

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 5th April to 2 May 2025 and you use your credit card for retail purchases on the 15th of April for Rs.5000 and online purchase on 20 April for Rs.6,000. You will now be required to pay the minimum amount due or the total due amount within the due by date which will be on the 2 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 3.75% per month, the interest rate will be calculated as follows:

1. Interest charged on the transaction amount of Rs.5000 will be calculated from the transaction date that is the 5 of April to 22 May which is for 49 days. The formula used will be (3.75X12) X (49/365) X5000/100 = Rs.302.05.
2. Interest charged on the transaction amount Rs.6,000 will be calculated from the transaction date that is the 15 April to 22 May which is for 39 days. The formula used will be (3.75X12) X (39/365) X6000/100 = Rs.288.49.
3. Interest charged on Rs.90 for transactions date between 5th April to 22 May for 49 days. The formula used will be (3.75X12) X (49/365) X 90/100 = Rs.5.44..
4. Interest charged on the balance amount Rs.6,175 will be calculated from 22 April to 2 May which is for 10 days. So, the formula used will be (3.75X12) X (10/365) X6175/100 =Rs.76.13.
5. Therefore, the total interest charged is Rs.672.11.

So, the credit card 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 that you know the monthly and annual interest rates charged on your card.

SBI 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.

Top SBI Credit Cards with Interest Rates

SBI Credit Card Interest Rates can vary based on the specific card you hold. Here are the interest rates for the top SBI credit cards:

When is Interest Rate Charged on SBI Credit Card?

You can enjoy interest-free usage by paying the full amount due within the interest-free period. Below mentioned are some of the instances where interest is charged: 

1. If the full outstanding amount is not paid by the due date. 

1. Only the minimum amount due is paid, leaving a balance unpaid. 

1. On each new transaction made while there’s an unpaid balance on the card. 

1. In case of cash withdrawal from an ATM, interest applies from the withdrawal date until repayment. 

1. In the case of balance transfer from other credit cards, the interest-free period becomes invalid, and interest applies until the amount is cleared. 

How to Avoid Paying Interest on SBI Card Credit Cards?

You can avoid paying interest on your SBI credit cards by following the below-mentioned steps: 

1. Clear your outstanding balance as soon as possible to prevent interest accumulation. 

1. Avoid carrying forward debt and make payment of full amount due. 

1. Tack your expenses and ensure that bills are paid before the due date or grace period. 

1. For smoother financial planning, sync your billing cycle with your salary or income credits. 

1. Limit cash advances to true emergencies, as they incur immediate interest charges. 

1. Avoid missing due dates and late fees, automate your credit card payments. 

1. Develop disciplined spending habits to maintain a good credit record and minimize interest costs.

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