If you use SBI’s credit card, then there is an important news for you. SBI Cards has changed the method of calculation of Minimum Amount Due (MAD) from 15 July 2025.
Minimum Amount Due is the minimum amount that you have to pay every month by the billing date of the card, so that you are not considered a defaulter.
From now on, the minimum amount due every month will be slightly higher, especially for those customers who have a large outstanding amount. Under the new rule, SBI will now recover your EMI, all charges and finance charges (interest) in full every month. Earlier there was a facility to pay them partially, due to which the interest kept increasing.
SBI says that this change will help customers repay their loans responsibly. Although you will have to pay a higher amount every month, the loan will not remain pending for a long time.
How will the new MAD come out?
In the new formula, some things will now be included 100%. This will include the full amount of GST, full EMI amount, all fees and charges, finance charge, overlimit amount (if any) and 2% on the remaining balance.
Let’s understand with an example
Let’s assume that your card bill is ₹1 lakh, on which the finance charge is ₹10 thousand, fees and charges are ₹3000 and GST is ₹3000. In such a case, the new MAD will be – ₹3000 + ₹3000 + ₹10000 + (2% of ₹1 lakh i.e. 2000) = ₹18 thousand.
