SBI Card- Big news for SBI Card holders. From July 15, 2025, SBI Cards is going to implement a new rule, due to which the “minimum amount due” i.e. the minimum payment amount of your monthly bill may increase. It is important for SBI credit card users to understand this change, so that they can pay their bill properly and do not have to pay unnecessary penalty.
What does the New Testament say?
SBI Card Company is changing the method of calculation of “Minimum Amount Due” (MAD) from July 15, 2025. Under this change, now cardholders will have to pay 100% of the GST, finance charge, other fees and EMI included in their bill every month in MAD. Apart from this, 2% of the outstanding amount will also be included in MAD.
SBI Card has also given an example of the new calculation on its website. In this example, it is told that if you were earlier making a minimum payment of Rs 17,313, then now you may have to pay up to Rs 20,013.
What will be included in MAD under the new formula?
The new MAD formula, which will come into effect from July 15, 2025, will include the following:
100% GST
100% EMI
100% fees and charges
100% finance charge
Overlimit amount (if any)
2% of the outstanding amount
Payments will be settled in the following sequence:
First GST
Then EMI
then charges and fees
then finance charge
followed by balance transfers, retail spends and cash advances
Will this change end the liability quickly?
Many people may think that the increased MAD payment will clear the credit card debt quickly, but the reality is different. Calculations show that even if you pay only the MAD amount every month and do not spend anything new, it may take you 85 to 90 months i.e. more than 7 years to repay your credit card debt. Remember, paying only the minimum payment increases the debt at an unprecedented pace. Therefore, making the full payment is the right way.
MAD only protects against default
The “Minimum Amount Due” of a credit card is just a way to save you from default. It should not be made an option for regular payment. If you pay only MAD, interest will keep accumulating on you and the total debt will increase. Therefore, try to pay the entire credit card dues on time every month.
Understand the impact of change with an example
SBI Cards has given an example that if a user’s retail expenditure is Rs 1,34,999.60 and the finance charge on it is Rs 11,972.18 and the fee is Rs 2,700, while the GST is Rs 2,640.99. So under the old rule, the MAD would have been Rs 17,313.17, but under the new rule it will increase to Rs 20,013.16.