State Bank of India or SBI, the country's largest lender, offers different variants of credit cards for customer's requirements. From discounts on movie tickets to various reward points, these cards offer variety of benefits with these cards. However, the bank also levies certain charges for the usage of credit cards. According to financial planners, the user must have a clear idea of the features, rewards and the charges payable in detail to make the most of his/ her credit card.
Given below are different types of charges levied by SBI credit cards:
Annual fees and renewal fees
There are annual fees and renewal fees applicable on the SBI credit cards. Annual fee is a one-time charge and renewal fee is charged every year. These fees may vary from cardholder to cardholder, and for different card variants, according to SBI's credit card website - sbicard.com. These fees, as applicable, are directly charged to the cardholder's account and the same is billed in the card statement of the month in which it is charged.
Cash advance fees
The cardholder can use the card to access cash in an emergency from domestic/international ATMs. A transaction fee is levied on all such withdrawals, according to SBI. This is billed to the cardholder in the next statement. A transaction fee of 2.5 per cent or Rs 300 whichever is higher (in case of domestic ATMs) and 3 per cent or Rs 300, whichever is higher ( in case of international ATMs) are levied. All cash advances also carry a finance charge equal to charges on revolving credit from the date of withdrawal until the date of full payment, according to SBI.
Cash payment fee
The cardholder can go to select SBI branches or SBI associate branches and pay card dues by mentioning the credit card number and amount in the pay-in slip and depositing the same at the branch counter. An instant payment acknowledgement receipt is provided after paying the bill. This service is available at Rs 199 plus all applicable taxes.
Interest free grace period
The interest free credit period can range from 20 to 50 days, subject to submission of claims by the merchant. However, this is not applicable if the previous month's balance has not been cleared in full or if the cardholder has availed of cash from any ATM.
Finance charges (Service charges)
Finance charges are payable at the monthly interest rate on all transactions including unpaid EMIs (Equated Monthly Instalments) from the date of transaction in the event of the cardholder choosing not to pay his balance in full, and on all cash advances taken by the cardholder, till they are paid back. If the cardholder makes partial or no payment of total amount due (TAD) before payment due date (PDD); i.e. the customer has outstanding balance from previous months and in the current month, finance charges are levied on the closing balance till the payment date, according to SBI.
Late payment charges
These are applicable if minimum amount due is not paid by the payment due date.
Charges and fees, as it is applicable from time to time, are payable by cardholders for specific services provided by the bank.