As the end of moratorium period approaches, credit card issuers have started revising their schedule of charges. SBI Card and HDFC Bank are among the first issuers to revise their late payment fee, EMI conversion processing fee, finance charges, etc. So, let us see what changes have been made and what does it mean for the cardholders.
Revised Fees and Charges on SBI Credit Cards (w.e.f 1st July 2020)
| Type of Fee/Charge | Previous Rate | Revised Rate |
| Late Payment Fee | For Outstanding Amount: Up to Rs. 200 – Nil Rs. 201 to Rs. 500 – Rs. 100 Rs. 501 to Rs. 1,000 – Rs. 400 Rs. 1,001 to Rs. 10,000 – Rs. 600 Rs. 10,001 to Rs. 25,000 – Rs. 800 Above Rs. 25,000 – Rs. 950 |
For Outstanding Amount: Up to Rs. 500 – Nil Rs. 501 to Rs. 1,000 – Rs. 400 Rs. 1,001 to Rs. 10,000 – Rs. 750 Above Rs. 10,000 – Rs. 950 |
| Processing Fee for Flexipay EMIs | 2% of the amount Minimum- Rs. 199 Maximum- Rs. 1,000 |
2% of the amount Minimum- Rs. 249 Maximum- Rs. 1,500 |
Revised Fees and Charges on HDFC Credit Cards (w.e.f 1st September 2020)
| Type of Fee/Charge | Previous Rate | Revised Rate |
| Late Payment Charges | For Outstanding Amount: Less than Rs. 100 – Nil Rs. 100 to Rs. 500 – Rs. 100 Rs. 501 to Rs. 5,000 – Rs. 500 Rs. 5,001 to Rs. 10,000 – Rs. 600 Rs. 10,001 to Rs. 25,000 – Rs. 800 Rs. 25,001 to Rs. 50,000 – Rs. 950 Above Rs. 50,000 – Rs. 950 |
For Outstanding Amount: Less than Rs. 100 – Nil Rs. 100 to Rs. 500 – Rs. 100 Rs. 501 to Rs. 5,000 – Rs. 500 Rs. 5,001 to Rs. 10,000 – Rs. 600 Rs. 10,001 to Rs. 25,000 – Rs. 800 Rs. 25,001 to Rs. 50,000 – Rs. 1,100 Above Rs. 50,000 – Rs. 1,300 |
| Over Limit Charges | 2.5% of the over-limit amount (minimum Rs. 500) | 2.5% of the over-limit amount (minimum Rs. 550) |
| Charges on Revolving Credit/Finance Charges (on select cards*) |
3.49% per month (41.88% annually) | 3.6% per month (43.2% annually) |
*Regalia/Regalia First/Business Regalia/Business Regalia First/Doctors Regalia/Diners Club Privilege/Diners Clubmiles/Millennia/Easy EMI/Intermiles Signature/Intermiles World/Indigo 6E Rewards/Indigo 6E Rewards XL/MoneyBack/IndianOil/Times Titanium/Times Platinum
Suggested Read: 7 Credit Card Fees and Charges You Must Be Aware Of
How do the Revised Charges Affect Cardholders?
Late Payment Charges
Firstly, let us see how changes in late payment charges will impact cardholders.
For payments due till 31st August, cardholders can opt for moratorium and get the late payment charges waived off. However, once moratorium ends, late payment charges will be applicable at the updated rates. As you can see in the tables above, card issuers have increased the charges, especially on higher outstanding balances. So, if you have been revolving a high unpaid balance during the moratorium period and cannot manage to pay even the minimum due post 31st August, the new late payment charges will significantly add to your burden.
For example, you have a total outstanding balance of Rs. 60,000 on your HDFC Regalia Credit Card as on 31st August 2020. Now, if you are not able to pay even the minimum due amount till the month of November 2020, the late payment charges for these 4 months will be Rs. 5,200.
Finance Charges
Secondly, let us talk about the revised finance charges. So far, only HDFC Bank has increased the finance charges on some of their cards (as shown in the table above).
Finance charges are applicable during the moratorium period and will continue afterwards if you fail to pay the dues in full. Now, in the above example with HDFC Regalia Credit Card, this is how much extra you will have to pay if you cannot afford full payment post moratorium.
| Date | Details | At Previous Rates | At Revised Rates |
| 31st Aug 2020 | Total Amount Due | Rs. 60,000 | Rs. 60,000 |
| Interest charged (for 1 month) | Rs. 2,094 | Rs. 2,160 | |
| Late Payment Charges | Rs. 950 | Rs. 1,300 | |
| GST on interest Charges | Rs. 376.92 | Rs. 388.80 | |
| Total Due | Rs. 63,420.92 | Rs. 63,848.80 | |
| 30th Sept 2020 | Interest charged | Rs. 2,213.39 | Rs. 2,298.55 |
| Late Payment Charges | Rs. 950 | Rs. 1,300 | |
| GST on interest Charges | Rs. 398.41 | Rs. 413.79 | |
| Total Due | Rs. 66,982.72 | Rs. 67,861.14 | |
| 31st Oct 2020 | Interest charged | Rs. 2,337.69 | Rs. 2,443 |
| Late Payment Charges | Rs. 950 | Rs. 1,300 | |
| GST on interest Charges | Rs. 420.78 | Rs. 439.74 | |
| Total Due | Rs. 70,691.19 | Rs. 72,043.88 | |
| 30th Nov 2020 | Interest charged | Rs. 2,467.12 | Rs. 2,593.58 |
| Late Payment Charges | Rs. 950 | Rs. 1,300 | |
| GST on interest Charges | Rs. 444.08 | Rs. 466.84 | |
| Total Due | Rs. 74,552.39 | Rs. 76,404.30 |
Although the difference between the two values is not that significant, the amount itself is. Your outstanding balance of Rs. 60,000 can increase to over 76,000 in just 4 months if you do not pay in full.
Read More: HDFC Credit Card Finance Charges
How to avoid these charges?
The best way to avoid paying these charges is clearing your credit card debts in full. By paying the minimum amount due, you can avoid the increased late payment charges. But it is actually the finance charges that lead to a debt spiral.
Secondly, you can get your outstanding balances converted into EMIs and pay them off over a period instead of paying finance charges at such high rates. Even if the one-time processing fee on EMI conversion may have increased, it is still a cheaper bet than paying finance charges month on month.
Keep coming to this page for more updates on revised credit card charges.
2 Comments
Which will be best for me credit card only for shopping and Emi purchase.
Hi Maneesha,
For your regular shopping needs and purchases on EMIs, you should get a card with a low annual fee and good rewards program. Here are a few cards you can consider:
1. HDFC Moneyback Credit Card (Annual Fee: Rs. 500)
2. SBI SimplyCLICK Credit Card (Annual Fee: Rs. 499)
3. Amazon Pay ICICI Bank Credit Card (Annual Fee: Nil)
4. Flipkart Axis Bank Credit Card (Annual Fee: Rs. 500)
5. HSBC Cashback Credit Card (Annual Fee: Rs. 750)