SBM ZET Credit Card

While the SBM ZET Credit Card eliminates joining and annual fees, it is vital to understand the operational charges that apply when you use the card for specialized transactions or miss a payment. Below is a detailed breakdown of the exact fees you might encounter, along with practical examples of how they impact your wallet.

The Joining Fee is Rs. 0. You do not pay anything to acquire the card, making it highly accessible. Since there is no fee, it does not require any welcome benefits to offset the cost.

The Annual or Renewal Fee is Rs. 0. You are never charged a yearly maintenance fee. Because it is lifetime free, you do not have to worry about spending Rs. 1 lakh or Rs. 2 lakh a year just to trigger a fee waiver.

The APR or Interest Rate is 3.75% per month, which can reach up to 45% annually. Credit cards give you an interest-free period of 20 to 55 days. However, if you fail to pay your full statement balance by the due date, this high interest kicks in. For example, if you leave a balance of Rs. 10,000 unpaid, the bank will charge you roughly Rs. 375 in interest for just one month, rapidly increasing your debt.

Late Payment Charges apply if you fail to pay even the minimum amount due. The fees are structured in slabs: outstanding balances of Rs. 0-100 attract Rs. 0; Rs. 101-500 costs Rs. 100; Rs. 501-1,000 costs Rs. 500; Rs. 1,001-5,000 costs Rs. 600; Rs. 5,001-10,000 costs Rs. 750; Rs. 10,001-25,000 costs Rs. 900; Rs. 25,001-50,000 costs Rs. 1,100; and anything above Rs. 50,000 incurs a Rs. 1,300 fee. If you have an unpaid bill of Rs. 3,000, you will be hit with a Rs. 600 penalty plus the 3.75% interest.

The Foreign Transaction or Forex Markup Fee is 3.5%. This fee applies to all international POS payments and online purchases made in a foreign currency. For example, if you buy software online for USD 100 (approx. Rs. 8,400), the bank will add a 3.5% markup, costing you an extra Rs. 294 just in fees.

The ATM Cash Withdrawal Fee is a steep 2.5% of the withdrawn amount, subject to a minimum charge of Rs. 500. If you withdraw Rs. 10,000 cash from an ATM using this credit card, you will instantly be charged Rs. 500 as a fee. Additionally, cash advances do not get an interest-free period, meaning the 3.75% monthly interest starts applying from day one.

The Rent Payment Convenience Fee is 1% of the transaction amount, plus applicable GST and platform charges. Using this card to pay rent is costly. If you pay Rs. 20,000 for rent, the bank adds a Rs. 200 fee, and as noted earlier, you earn zero ZCoins for the transaction.

The Railway Surcharge is 1% of the transaction amount plus GST. If you use this card to book a train ticket worth Rs. 2,000 directly on the IRCTC portal, a surcharge of Rs. 20 plus taxes will be added to your final bill.

The Cash Payment Fee is Rs. 250 plus GST. This fee is levied if you walk into a partner branch and deposit physical cash at the counter to clear your credit card bill. To avoid this entirely, always pay your bill online via UPI or NEFT.

The Cheque Payment Fee is Rs. 25 for cheque values up to Rs. 5,000, and Rs. 50 for cheque values above Rs. 5,000. If you write a cheque for Rs. 15,000 to clear your statement, a Rs. 50 fee will reflect on your next bill.

The Reward Redemption Fee is Rs. 99 plus applicable GST. Every time you submit a redemption request, the bank charges a handling fee of Rs. 99 plus applicable GST. Therefore, it is financially wiser to wait until you have a large pool of ZCoins (e.g., 5,000 points worth Rs. 1,000) before redeeming, so the Rs. 99 fee takes up a much smaller percentage of your total reward value.