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 Bank 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 INR 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 INR 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 INR 10,000 within the due date, you will not be charged interest on your expenses.
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 |
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 |
The SBI credit card interest rate calculator helps in figuring 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 Transacted |
INR 5000 |
Date of Transaction |
20 April 2020 |
Amount Transacted |
INR 6000 |
Date of Statement Generation |
2 May 2020 |
Total Due Amount |
INR 11,000 |
Minimum Amount Due |
INR 5000 |
Payment Due Date |
22 May 2020 |
Next Statement Date |
2 June 2020 |
(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= INR 214.77
ii) 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= INR 224.67
iii) 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 = INR 66.08
Total interest charged will be INR 505.52 (INR 214.77 + INR 224.67 + INR 66.08)
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The interest rate on the SBI credit card is 3.35% per month or 40.2% annually.
The SBI credit card interest rate is calculated for each transaction separately using the formula-
[(Total number of days x Transaction amount x 3.35% per month x 12 months) x number of days] / 365 days.