SBI credit card changes from July 15: From minimum due amount to air accident insurance

SBI Card has announced major changes in its credit card terms, effective from July 15, 2025, impacting billing and benefits. From updating its minimum amount due (MAD) to discontinuing its complimentary air accident insurance on several cards, these changes will impact crores of Indians who hold SBI credit cards. Let’s take a look at the key changes: 

Complimentary air accident insurance

Starting from July 15, 2025, SBI Card will no longer offer complimentary air accident insurance coverage of ₹1 crore that is currently available on premium cards such as SBI Card ELITE, SBI Card Miles ELITE and SBI Card Miles PRIME. SBI Card also currently provides a benefit of ₹50 lakh as air accident insurance on SBI Card PRIME and SBI Card PULSE, which will also not be available to the cardholders anymore. 

Further, SBI Card has withdrawn complimentary air accident insurance coverage from co-branded cards as well, effective August 11, 2025. 

Currently, SBI offers air accident insurance coverage of ₹1 crore on co-branded cards, including UCO Bank SBI Card ELITE, Central Bank of India SBI Card ELITE, PSB SBI Card ELITE, KVB SBI Card ELITE, KVB SBI Signature Card, and the Allahabad Bank SBI Card ELITE. It also offers ₹50 lakh on SBI Card PRIME card co-issued with UCO Bank, Central Bank of India, PSB, Karur Vysya Bank, South Indian Bank, Karnataka Bank, City Union Bank and Allahabad Bank, and SBI Platinum credit cards issued with UBI, OBC, Federal Bank and Bank of Maharashtra. None of these will have complimentary air accident insurance coverage from August 11. 

Minimum amount due (MAD)

SBI Card has updated its terms, changing how its minimum amount due (MAD) will be calculated. Starting from July 15, MAD will include:

• 100% of GST
• 100% of EMI
• 100% of fees and charges
• 100% of finance charges 
• Overlimit amount (if applicable)
• 2% of the remaining outstanding balance

The existing MAD calculation is: 100% of GST, 100% of EMI amount, 100% of fees and charges, 5% of finance charges, over limit amount, retail spends and cash advance. 

The minimum amount due is the minimum payment that you have to make every month by the due date to avoid late fees. However, it is important to know that clearing MAD every month is not the ideal way to pay off your credit cards as it increases the total debt liability on you. You must try to pay the whole bill by your due date to manage your finances well and stay clear of debt in the long run. 

The new terms by SBI have changed how much you will owe as MAD every month, increasing the minimum payments. This might help you clear your credit card debt sooner rather than later.

Payment order

SBI Card has revised the payment settlement structure. From July 15, payments made toward outstanding dues will be applied in the following sequence: GST, EMI amount, fees and charges, finance charges, balance transfers, retail spends and cash advances.

The order of payment settlement specifies how your bill payment will be received against your total outstanding. Simply put, under the new order, when you pay your credit card bill, the money will first clear GST, then the EMI amount, then fees and charges, and so on, as mentioned in the above order.

These changes can impact the financial decisions and planning of the users. Cardholders must take note of these changes and stay aware to plan their budget accordingly.