## Interest Rate on SBI Credit Card

Borrowing credit on your SBI credit card is a great way to make small and big-ticket purchases and transactions. However, at the end of the billing period, the borrowed funds require to be paid back in full. Failing to do so attracts a charge known as the interest rate. So, what is this SBI credit card interest rate?

The SBI credit card interest rate is the finance charges that are levied against your credit card when you use it to borrow funds for transactions. The charge is applicable only when the total outstanding bill amount is not paid within the predetermined due date or the interest-free period.

For example, if ₹10,000 is the total amount that is outstanding on your credit card and you pay a partial sum or the minimum due on the card, say ₹5000, the balance amount is carried forward to the next billing cycle. In such a situation, the SBI credit card interest rate will be applicable. However, if you pay the entire ₹10,000 within the due date, you will not be charged interest on your expenses.

## How is SBI Credit Card Interest Rate Calculated?

An SBI credit card interest rate calculator can help you figure out the interest that you will be charged on the outstanding balance. The interest rate on the SBI credit card is calculated using the below-mentioned formula.

 [(Total number of days x transaction amount x 3.35% per month x 12 months) x number of days] ÷ 365 days

Let us consider an example, to learn how the interest rate on an SBI credit card affects the amount you pay.

Example:

 SBI credit card interest rate 3.35% per month (40.2% per year) Date of transaction 15 April 2020 Amount of transaction ₹5,000 Date of transaction 20 April 2020 Amount of transaction ₹6,000 Date of statement generation 2 May 2020 Total due amount ₹11,000 Minimum amount due ₹5,000 Payment due date 22 May 2020 Next statement date 2 June 2020

1. Interest charged on the first transaction from the transaction date to the payment due date:

(Total number of days from the transaction date to the payment due date x Total amount spent x Interest Rate per annum) ÷ total number of days in a year

(39 x 5000 x 40.2%) ÷ 365 = ₹214.77

2. Interest charged on the second transaction from the transaction date to the payment due date:

(Total number of days from the transaction date to the payment due date x Total amount spent x Interest Rate per annum) ÷ total number of days in a year

(34 x 6000 x 40.2%) ÷ 365= ₹224.67

3. Interest charged on the outstanding balance from the date of partial payment to the next statement generation date:

(Total number of days between the date of partial payment to the date of next statement generation date x Total outstanding balance x Interest rate per annum) ÷ total number of days in a year

(10 x 6000 x 40.2%) ÷ 365 = ₹66.08

Total interest charged will be ₹505.52 (₹214.77 + ₹224.67 + ₹66.08)

## SBI Credit Card Interest Rate of Top 5 SBI Credit Cards

The SBI card interest rate varies depending on the card type that you own. The SBI credit card interest rate of five of the top cards is mentioned below.

 Card Name SBI Credit Card Interest Rate BPCL SBI Card 3.35% per month / 40.2% per year SimplySAVE SBI Card 3.35% per month / 40.2% per year SBI IRCTC RuPay Credit Card 3.35% per month / 40.2% per year SBI Card ELITE 3.35% per month / 40.2% per year SBI Card PRIME 3.35% per month / 40.2% per year

## SBI Credit Card Interest Free Period

The State Bank of India offers a grace period, also known as the interest-free period, on all its credit cards. This period usually starts from the date of the transaction and goes up to the payment due date. Usually, the credit card interest free period can be anywhere from 20 to 50 days. If you clear all of your outstanding dues on or before the payment due date on your SBI credit card, the bank doesn’t levy any interest on the transaction that you make.

However, if you fail to make your SBI credit card bill payment in full, choose to pay only the minimum amount due, or have any outstanding balance carried over from the previous months, you will lose all the benefits of the interest-free period. The bank will charge interest of 3.5% per month on all transactions for the period starting from the date of transaction up to the date on which you finally clear your dues.