Big Update for SBI Credit Card Users — From July 15, 2025, SBI Cards is changing the way it calculates the Minimum Amount Due (MAD) on your credit card bills.
This move is aimed at encouraging responsible repayment and reducing long-term debt burden for users.
What’s Changing?
Under the new rules, your monthly minimum due amount will be higher, especially if you have large outstanding dues or EMIs. Earlier, you c
ould partially pay EMIs and charges, but now SBI will recover the entire EMI, interest (finance charges), and all fees/charges in full each month.
New Minimum Due Formula
SBI will now calculate MAD as follows:
100% of EMI (if any)
100% of all charges and fees
100% of GST
100% of finance charges
Any over-limit amount
Plus 2% of the remaining balance
Example for Better Understanding
Suppose your credit card bill is ₹1,00,000 with the following breakdown:
Finance charges: ₹10,000
Fees/Charges: ₹3,000
GST: ₹3,000
2% of balance: ₹2,000
New MAD = ₹10,000 + ₹3,000 + ₹3,000 + ₹2,000 = ₹18,000
Why This Matters
SBI says this new method will help users repay faster and avoid mounting interest. While the monthly payment may rise, the overall financial burden will reduce over time.
