SBI credit card, SBI credit card charges
Credit cards can be a powerful financial tool when used right, and many do. Whether you have an SBI credit card or any other, you can use it for a range of payments outside of shopping. In fact, it is commonly used to pay utility bills and other big-ticket payments, including rent.
This is a smart way to utilise the tool, as such payments are consistent and usually quite fixed. As such, it helps you rack up your credit card points, while also maintaining a healthy credit utilisation ratio all through.
However, if you are an SBI credit card user, you should note that the issuer has changed a few rules. In 2023, there have been a few changes to the SBI credit card charges applicable, which may impact a wide range of users. Read on to know more about it.
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Updated SBI Credit Card Charges, as of March 17, 2023
In early 2023, SBI announced a change to the SBI credit card charges applicable on rent payments. As per the revision, any SBI credit card users paying rent via their card will get charged ₹199 plus the applicable tax, which is GST at 18%.
This was not the first amendment to the SBI credit card charges applicable on rent payments. In 2022, the processing charges for rent payments were increased as well, and were set at ₹99 plus 18% GST.
This change results in an increase in the final cost, and many SBI credit card users received this update via SMS and email. Keep in mind that these charges are applicable to you even if you pay your rent using services such as CRED and others. While you may continue paying your rent with your credit card, keep in mind that your outgo will increase slightly.
Current SBI Credit Card Charges
You can find the entire schedule of charges on the official SBI website, but you also check your credit card welcome kit for the same. This would have been sent to you along with your credit card. It is important to know the fees applicable on your SBI credit card, as a few of them are payable annually.
To help with that, here is a table of a few of the current SBI credit card charges you should know.
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| Type | Particulars |
| Annual fees | Up to ₹9,999 |
| Finance charges | Minimum of ₹25 |
| Cash advance fees | Minimum of ₹500 or 2.5% of the amount |
| Renewal charges | Up to ₹9,999 |
| Cheque payment fees | ₹100 |
| Cash payment fees | ₹250 |
| Payment dishonour fee | Minimum of ₹500 or 2% of the amount |
| Late payment charges | Up to ₹1,300 |
| Foreign currency transaction fees | Up to 3.5% |
| Overlimit | 2.5% of the amount over the limit |
Disclaimer: Above-mentioned rates are subject to change as per the bank’s internal policies
These are a few of the important charges associated with the SBI credit card. Do note that there are others applicable as well, and you should know about them. You can find all this information on the official website with ease.
As a responsible credit card user, you must be aware of all the charges applicable, and the transactions they are applicable on. This is because the charges for certain transactions, such as cash withdrawals, on a credit card are much higher than a regular debit card. Being unaware of such charges can lead you to pay high fees, unnecessarily.
Reasons to Stay Updated on Credit Card Charges
The first, and most important, reason to stay updated on your credit card charges is because of the cost. In instances that the cost increases significantly, a routine payment or transaction may suddenly become a lot costlier.
Over time, this can affect your monthly budget and cause you to spend more than you intended. Secondly, if the charges change from a flat fee to a percentage of the payment, your outgo can increase significantly. In some cases, it may even attract a higher tax, making it a lot costlier.
Knowing about such changes can help you consider other, less costly alternatives. For instance, if the charges alongside your rent payment are too high, you can consider other payment routes such as cash payments or even cheque. These are likely to be cheaper and can help you save money.
Lastly, staying updated about your credit card charges is the mark of a responsible user. The charges applicable are an important facet of owning and using a credit card. You should make the effort to know these details, so as to avoid any unpleasant surprises down the line. In some cases, add-on charges can lead to hefty payments that will affect your budget.
As an SBI credit card holder, the new charges, while only slightly higher, do lead to an increased cost. Keep track of such changes, as the last revision also led to an increase. In the instance that it does increase further, it may be time to consider other routes of paying your rent. There are other options available and you should pick one that suits your budget and caters to your financial wellbeing.
