If you are using a State Bank of India (SBI) credit card, important changes are coming your way starting July 15, 2025, and they may significantly impact how you manage your credit card payments and benefits. SBI Card has announced revisions in its Minimum Amount Due (MAD) calculation, payment settlement process, and accident insurance coverage. Here’s what you need to know.
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Minimum Amount Due (MAD) Calculation to Change from July 15
Starting July 15, SBI Card will adopt a new method to calculate the minimum amount due on your monthly credit card statement. The changes include:
- EMIs included in MAD: If you have any outstanding EMIs, the EMI amount will now be part of your monthly minimum due.
- 2% of Remaining Balance: In addition to EMIs, 2% of the remaining balance on your card will also be added to the MAD.
- Additional Charges: Finance charges, late payment fees, and over-limit fees will continue to apply if dues are not cleared in full.
⚠️ Impact:
This revised calculation method will increase the minimum monthly payment, and failure to pay it on time may result in rapid accumulation of debt due to high-interest charges.
Also Read: IndusInd Bank Struggles in Q1: Deposits and Advances Take a Hit
New Payment Settlement Process Introduced
SBI Card is also introducing a revised hierarchy for how your credit card payments are applied to outstanding balances. Under this new system, partial payments will be settled in the following order:
- GST on applicable services
- EMI instalments
- Charges such as late fee, finance charges, and over-limit fee
- Principal amount including retail purchases and cash advances
⚠️ What it means:
If you’re only making partial payments, your EMIs and fees will be cleared first, and the actual retail purchases or cash withdrawals will be cleared last—potentially increasing the interest burden.
Free Accident Insurance Facility to Be Discontinued from August 11
Another major change is the cancellation of free air accident insurance on certain SBI credit cards starting August 11, 2025. This facility previously provided coverage of ₹50 lakh to ₹1 crore and was applicable on co-branded cards issued in partnership with:
- UCO Bank
- Central Bank of India
- Other select SBI credit card variants
✅ What to do:
Cardholders are advised to check whether their card is eligible for this insurance discontinuation and plan for alternate coverage if needed.
Plan Ahead to Avoid Financial Strain
These changes highlight the need for better financial planning among SBI credit card users. With higher minimum payments and revised settlement rules, users must:
- Monitor monthly statements carefully
- Avoid making only minimum payments
- Settle EMIs and charges promptly
- Re-evaluate benefits tied to their existing card
For more details, users can visit the official SBI Card website or reach out to SBI Card customer support.
Stay informed and plan wisely — these updates could significantly affect your credit card management strategy.