I missed a payment on my SBI credit card last month, and now I see an extra charge on my statement. How does SBI calculate late payment interest, and how much do they charge?
SBI credit cards have a high late payment interest rate, also known as finance charges, which can go up to 3.50% per month (42% annually). This interest applies to the total outstanding balance, not just the missed amount. So, if you only make a partial payment, the remaining balance will attract interest daily until it’s fully paid.
Apart from interest, there’s also a late payment fee based on your outstanding amount:
- ₹0 – ₹500 → No fee
- ₹501 – ₹1,000 → ₹400
- ₹1,001 – ₹10,000 → ₹750
- ₹10,001 – ₹25,000 → ₹950
- ₹25,001 – ₹50,000 → ₹1,100
- Above ₹50,000 → ₹1,300
For example, if your due amount is ₹15,000 and you don’t pay anything, you’ll be charged ₹950 as a late fee, plus interest on the balance. Even if you pay the minimum due, the remaining balance will still attract high interest.
I once missed a payment by just two days, and the extra charges were shocking. SBI doesn’t have a grace period, so even a one-day delay means interest kicks in. The best way to avoid this? Set up auto-pay for at least the minimum due or use reminders so you never forget!