SBI Cards’ New Minimum Amount Due (MAD) Formula:
State Bank of India Credit Cards (SBI Cards) will implement a revised formula to calculate the Minimum Amount Due (MAD). This is the amount that a cardholder is mandatorily required to pay by the due date to keep their account in good standing. The new approach is likely to lead to higher MAD payments for users with revolving credit card debt, as it emphasizes full settlement of finance charges, fees, and other dues, rather than allowing them to accumulate.The Minimum Amount Due (MAD) is the smallest payment a credit card user must make to avoid penalties and ensure their credit card account remains active and non-delinquent. While it provides temporary relief from having to repay the entire outstanding balance, paying only the MAD will result in accruing interest and extending the debt over a very long period.
