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SBI CARD repayment scheme better than other Banks

SBI Card, India’s largest Credit Card company is offering a better repayment scheme than all other banks. SBI Card is incentivizing customers for repaying their dues. While other banks and credit card issuers are incurring penalties to check the defaults.

With the SBI Card repayment scheme, customers can pay the irregularity amount, converting the outstanding dues into 15-month loan and interest as low as 13%. According to the reports, defaults can be avoided in these schemes and will have better profitability. 

Customers can avail of SBI’s own repayment scheme or RBI’s restructuring scheme. Although RBI’s scheme is available only for the customers who have missed more than 90 days of payment, SBI targets a wider customer range.

Other credit card issuers like HDFC Bank and RBL Bank, to deter defaults, have raised late payment fees. HDFC has raised the late payment from 16-20% for small and 50-75% for large overdue.

SBI CARDS repayment scheme better than other Banks

The banks are growing their customer base more cautiously in the last 6 months, eliminating weak and unprofitable customers.

The maximum decrease in the cardholder count is seen for the Axis Bank (175,000), then is RBL Bank (75,000) and ICICI Bank (45,000). 

Net reductions are up to 450,000 at the industry level. SBI Card and HDFC bank have gained new positive additions again after facing the maximum drop in the month of April to June.

SBI CARDS repayment scheme better than other Banks

The credit card business is somewhere back to the Pre-COVID levels again for many banks and card issuer companies. During festive seasons, companies are expecting a growth of spending 15-17% compared to 25% last year.

Featured Image Credits- Outlook | CardInfo | creditcards.com

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