SBI Card New Payment Rule: A new rule is going to be implemented on SBI Credit Card next month, due to which the “minimum amount due” i.e. minimum payment of your monthly bill may increase.
SBI Card New Payment Rule: If you are an SBI credit card user then this is important news for you. From July 15, 2025, SBI Cards is going to implement a new rule, which may increase the amount of “Minimum Amount Due” i.e. minimum payment of your monthly bill. It is important for SBI credit card users to understand this change, so that they can pay their bill properly and do not have to pay unnecessary penalty.
What does the new rule say?
SBI Card Company is changing the method of calculation of “Minimum Amount Due” (MAD) from July 15, 2025. Under this change, now cardholders will have to pay 100% of GST, finance charge, other fees and EMI included in their bill every month in MAD. Apart from this, 2% of the outstanding amount will also be included in MAD.
SBI Card has also given an example of the new calculation on its website. In this example, it is explained that if earlier you were making a minimum payment of Rs 17,313, then now you may have to pay up to Rs 20,013.
What will be included in MAD under the new formula?
The new MAD formula, which will be implemented from July 15, 2025, will include the following:
- 100% GST
- 100% EMI
- 100% fees and charges
- 100% finance charge
- Overlimit amount (if any)
- 2% of the outstanding amount
Payments will be settled in the following sequence:
- First GST
- Then EMI
- Then charges and fees
- Then finance charges
- Then balance transfer, retail expenses and cash advance
Will this change end the liability quickly?
Many people may think that the increased MAD payment will end the credit card debt quickly, but the reality is different. Calculations show that even if you pay only the MAD amount every month and do not spend anything new, it may take you 85 to 90 months i.e. more than 7 years to repay your credit card debt. Remember, the debt increases at an unprecedented pace by making only the minimum payment. Therefore, making the full payment is the right way.
MAD only protects against default
The “Minimum Amount Due” of a credit card is only a way to protect you from default. It should not be made an option for regular payment. If you pay only MAD, interest will keep accruing on you and the total debt will increase. Therefore, try to pay the entire credit card dues on time every month.
Understand the impact of the change with an example
SBI Cards has given an example that if a user’s retail expenditure is Rs 1,34,999.60 and the finance charge on it is Rs 11,972.18 and the fee is Rs 2,700, while the GST is Rs 2,640.99. So under the old rule, MAD would have been Rs 17,313.17, but under the new rule it will increase to Rs 20,013.16.
What should credit card holders do?
If you always pay the minimum amount (MAD) instead of paying your credit card dues in full, then this change can affect your budget. It would be better if you keep your expenses under control and try to pay the credit card dues in full every month. This will also save you from interest and charges and will not affect your credit score.
The new rule of SBI Cards is a big step towards making credit card users pay responsibly. Although this may cause initial problems to some users, but in the long run it will help in avoiding the debt trap. The interest rate on credit card debt is generally much higher than any other loan, so it is wise to repay it as soon as possible.
