Understand the interest rates on the SBM Magnet Credit Card Interest Rates. Learn about charges for cash advances, purchases, and how to avoid finance fees effectively.
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Introduction
When using the SBM Magnet Credit Card, it’s essential to understand the finance charges that may apply under various circumstances. While the card offers many benefits and rewards, being aware of its interest rates and finance charges will help you manage your card usage responsibly and avoid unnecessary costs.
Finance Charges associated with the SBM Magnet Credit Card:
1. Interest After Credit-Free Period: 30% p.a. (2.50% per month)
The credit-free period is a feature that allows you to make purchases and not incur any interest charges for a set period—usually up to 45 days. However, if you don’t pay off the outstanding balance within this period, interest at the rate of 30% p.a. (or 2.50% per month) will be applied to your outstanding amount.
To avoid these interest charges, it’s best to pay your balance in full before the due date. This allows you to make the most of the interest-free period without worrying about additional charges.
2. Interest on Cash Advances: 40% p.a. (3.33% per month)
Cash advances made using your SBM Magnet Credit Card come with a higher interest rate compared to regular purchases. If you withdraw cash from an ATM or perform a similar transaction, the interest rate is 40% p.a. (or 3.33% per month).
It’s important to note that interest on cash advances is typically charged from the day of the withdrawal, without any grace period. Additionally, cash advance fees and other charges may apply on top of this interest rate, so it’s advisable to use cash advances only when absolutely necessary.
3. Interest Rate for POS/ECOM Transactions: 30% p.a. (2.5% per month)
The interest rate for Point-of-Sale (POS) and E-commerce (ECOM) transactions is set at 30% p.a. (or 2.5% per month) after the credit-free period expires. This rate applies to purchases made at physical stores or online shopping platforms if the balance is not paid in full within the specified period.
Again, the best way to avoid interest on POS/ECOM transactions is by paying off your balance in full before the due date.
4. Interest Rate for Cash Transactions: 40% p.a. (3.3% per month)
Cash transactions made using the SBM Magnet Credit Card, including cash advances and withdrawals, come with an even higher interest rate of 40% p.a. (or 3.3% per month). Cash transactions are subject to higher interest charges and may also incur cash advance fees, making them an expensive option for credit card usage.
How to Manage Finance Charges Effectively?
To avoid accumulating high finance charges on your SBM Magnet Credit Card, here are some helpful tips:
- Pay On Time: Ensure that you make the full payment within the credit-free period to avoid interest charges.
- Avoid Cash Advances: Cash advances come with high interest rates, and interest is charged immediately. Use your credit card for purchases instead.
- Monitor Your Transactions: Keep track of your spending, especially for large purchases, to ensure that you can pay them off before the due date.
- Make Partial Payments: If you can’t pay the full balance, try to pay off as much as possible to reduce the interest charged on the remaining balance.
Conclusion
The finance charges on the SBM Magnet Credit Card are relatively high for cash advances and other forms of credit usage beyond the interest-free period. Understanding these charges is crucial to avoid unnecessary costs and make the most out of your credit card benefits. To minimize interest, try to pay off your balance in full each month and avoid cash withdrawals unless absolutely necessary.
By managing your payments well and staying informed about the applicable interest rates, you can enjoy the rewards and perks of the SBM Magnet Credit Card without worrying about hefty finance charges.
SBM Magnet Credit Card Charges: Late & Withdrawal Fees
FAQs About Magnet Credit Card Interest Rates:
What is the interest rate for SBM Magnet Credit Card purchases after the credit-free period?
After the credit-free period (typically up to 45 days), the interest rate on purchases is 30% p.a. (or 2.50% per month).
Does the SBM Magnet Credit Card have an interest-free period?
Yes, the card offers an interest-free period of up to 45 days, provided you pay the balance in full before the due date.
What is the interest rate for cash advances with the SBM Magnet Credit Card?
The interest rate on cash advances is 40% p.a. (or 3.33% per month), making it more expensive compared to regular purchases.
Is the interest rate the same for all types of transactions?
No, the interest rate differs based on the transaction type. For POS/ECOM purchases, the rate is 30% p.a. (or 2.5% per month), and for cash advances or cash transactions, it’s 40% p.a. (or 3.33% per month).
When does interest get charged on SBM Magnet Credit Card purchases?
Interest is charged after the credit-free period if the balance is not paid off in full before the due date.
How can I avoid paying interest on the SBM Magnet Credit Card?
To avoid interest charges, you should pay the entire outstanding balance before the due date to take advantage of the interest-free period.
Is the interest rate the same for online and in-store purchases?
Yes, the interest rate for both POS (Point of Sale) and E-commerce (ECOM) transactions is 30% p.a. (or 2.5% per month) after the credit-free period.
Are there additional fees applied to cash advances apart from the interest rate?
Yes, in addition to the 40% p.a. interest rate, cash advances may incur additional cash withdrawal fees, typically 2.5% of the withdrawal amount or Rs 300, whichever is higher.
Does the SBM Magnet Credit Card charge interest on EMIs?
Yes, if you convert a purchase into EMI, it may attract interest charges based on the EMI plan you select, though the rates may differ from regular purchases.
How soon does interest get charged on cash advances?
Interest on cash advances starts being charged immediately from the date of withdrawal, with no grace period.
Can I avoid interest charges by paying only the minimum payment due?
Paying only the minimum amount due will not help you avoid interest charges on the remaining balance, as interest will be applied to the unpaid portion.
What is the monthly interest rate for cash transactions on the SBM Magnet Credit Card?
The interest rate on cash transactions is 40% p.a. (or 3.3% per month).
Does the SBM Magnet Credit Card offer any special interest rate for balance transfers?
Currently, the SBM Magnet Credit Card does not provide specific promotional rates for balance transfers, but regular interest rates apply.
Is the interest rate the same for international transactions?
For international purchases, the forex markup fee of 2.49% applies, but the interest rate for unpaid balances will remain 30% p.a. (or 2.5% per month).
How can I calculate the interest charged on my SBM Magnet Credit Card?
The interest is calculated on the outstanding balance after the credit-free period ends. To calculate, the amount is multiplied by the monthly interest rate (2.5% for purchases or 3.33% for cash advances).
By: Cibilfree