New Rule for SBI Credit Card Users from July 15: Minimum Amount Due Will Increase — All You Need to Know

Big news for SBI Credit Card holders — starting July 15, 2025, SBI Cards is introducing an important rule change that could impact your monthly payments. The company has revised the way it calculates the Minimum Amount Due (MAD) on your credit card statement, which may lead to a higher minimum payment each month.

It’s crucial for all SBI Card users to understand this change to avoid penalties and manage their credit card bills effectively.

What’s Changing in the New Rule?

From July 15, SBI Cards will change the formula used to calculate your Minimum Amount Due (MAD) — the minimum sum you must pay each month to avoid late payment charges.

Here’s what will now be included in MAD under the new formula:

✅ 100% of GST
✅ 100% of EMI (if applicable)
✅ 100% of fees and charges
✅ 100% of finance charges
✅ Over-limit amount (if applicable)
✅ 2% of the remaining outstanding balance

How Will Payments Be Applied?

When you make a payment, SBI Cards will settle your dues in this sequence:

1. GST

2. EMI payments

3. Fees and charges

4. Finance charges

5. Balance transfers

6. Retail purchases

7. Cash advances

Real Impact: Example of New MAD Calculation

SBI Cards provided an example on its website:

• Retail spends: ₹1,34,999.60

• Finance charges: ₹11,972.18

• Fees: ₹2,700

• GST: ₹2,640.99

Under the old rule, the Minimum Amount Due would have been: ₹17,313.17

With the new rule from July 15, the new MAD will be: ₹20,013.16

That’s a significant increase — which means cardholders must be prepared to pay more each month to stay current on their accounts.

Will This Help Clear Debt Faster?

Some may assume this change will help clear credit card debt faster — but that’s not entirely true. SBI Cards notes that even if you only pay the MAD each month (without making new purchases), it could still take 85–90 months (over 7 years) to fully repay the debt.

Why? Because interest continues to accrue rapidly on the outstanding balance if you pay only the minimum.

Important Reminder: MAD Only Prevents Default

The Minimum Amount Due is simply a way to avoid default and late fees — it should not be considered a regular payment strategy. Paying only the MAD will result in growing interest charges and escalating debt.

Financial experts strongly advise paying the full outstanding balance each month whenever possible to avoid high interest costs and to manage your credit card debt effectively.

Final Takeaway

SBI Card users should be aware that:

• From July 15, MAD will increase

• Paying only MAD is not an effective debt management strategy

• Full monthly payment is the best way to avoid debt traps

Stay informed — and plan your finances accordingly so that you don’t face unnecessary charges under this new rule.

Author Profile

Kuldeep Singh Chundawat

My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.

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