Home State Bank of India (SBI) SBI Credit Card EMI Transactions will be Expensive w.e.f. December 1st

SBI Credit Card EMI Transactions will be Expensive w.e.f. December 1st

SBI Cards and Payment Services Private Limited (SBICPSL) has announced an addition of a processing fee of Rs.99+ Taxes on the EMI transactions. This will come into effect from December 1.

Any transaction made before December 1 will not be subjected to such change. This addition of the processing fee came as a shocker for credit card subscribers.

Apart from the processing fee, there are other fees that the customer has to bear when using a credit card. Below we have listed all the fees associated with SBI Credit card purchases.

SBI Credit Card EMI Transaction Expensive

General Fee Charges on a Credit Card

The following are the charges that can be levied upon your credit card-

Processing Fee

While making the payment using a credit card, there are many intimidatory involved for the transaction to take place. The processing fee is the charge that the bank provides to this intimidatory to facilitate the credit card transaction.

The bank charges this fee from the customer only. The processing fee charged by SBI is Rs.99/- plus taxes.

Annual Fee

An annual fee is a fee that a credit card holder must bear for the subscription of a particular card. The annual fee of SBI can range from absolutely free to Rs.5000 a year depending on the type of SBI credit card you are using. In some cases, SBI does not charge any annual fee especially when you use a credit card regularly.  

Interest Charges

A credit card is an instrument using which you can take a small amount of loan from the bank without the requirement of any approval. Since the credit card is a borrowing instrument, the bank charges interest on the amount that you’ve borrowed.

The interest rate of a credit card is very high somewhere around 35-40% per annum but the good this is the interest rate will not be charged if your return the borrowed money back to the bank within 45 days.

Moreover, you can avail of an EMI facility on the borrowed money ono purchases. But, it is recommended to only use your credit card on a no-cost EMI facility as the interest rate is 0% and if for a traditional EMI facility the interest rate can range from 10-15%.

Late Payment Fee

SBI also charges a late payment fee on the credit card payments if you fail or forget to pay the credit card payment on time. The following are the late payment fee imposed on the user if he/she fails to pay the credit card payment on time-

Credit Card Amount not PaidLate payment fee
More than Rs. 500 & up to Rs. 1000Rs. 400
More than Rs. 1000 & up to Rs. 10,000Rs. 750
More than Rs. 10,000  up to Rs. 25,000Rs. 950
More than Rs. 25,000 & up to Rs. 50,000Rs. 1100
More than Rs. 50,000Rs. 1300

Foreign Transaction Fee

The foreign transaction fee is a fee that you’ll be charged if you pay for goods and services using an SBI credit card in the foreign currency. For foreign transactions, the exchange rate of INR to other currencies is determined by the VISA/MasterCard. SBI charges foreign transaction fees as follows-

Type of CardTransaction fee
All Cards Except Elite & Aurum3.5%
For Elite & Aurum Cardholders1.99%

Balance Transfer Fee

Balance Transfer is a facility that enables an SBI credit card subscriber to transfer all other bank credit card payments to the SBI credit card payment. This feature consolidates all credit card payments under one SBI credit card payment.

The credit card subscriber can avail of this service if the interest on another card is higher than that of the SBI credit card.

Cash Advance Fee

Using your credit card, you can also withdraw cash from all the domestic and international ATMs. When you withdraw the cash, a cash advance fee is charged which is as follows-

Type of ATMsTransaction Fee
Domestic2.5% or Rs.500/- whichever is higher
International2.5% or Rs.500/- whichever is higher

Over-The-Limit Fee

When a credit card holder uses more than the credit limit provided by the bank then an over the limit fee is charged which is 2.5 % of the over-limit amount or Rs. 600, whichever is higher.

Other Charges

The following are the other charges that you would have to pay on using certain features of the SBI credit card-

Rewards Redemption Fee: While redeeming the reward points from SBI cards Rs. 99 (On Gifts, Cash Redemption & Specific Vouchers Only) will be charged as a redemption fee.

Card Replacement: If you want to replace your credit card for theft or loss then you will be charged an amount anywhere from Rs.100 to Rs.250 (Rs. 1500/- for Aurum) depending on the type of card.

Statement Retrieval Fee: You can ask the bank for past bank statements by paying a statement revival fee of Rs. 100/- per statement for statements more than 2 months old.

Cheque Payment Fee- For cheque payment using your credit card, an amount of Rs.100/- will be charged.