Struggling with SBI credit card debt? A settlement might help reduce your burden. Learn how SBI credit card settlement works and what to expect.
SBI credit card settlement is an agreement between you and SBI to pay a lump sum amount that's less than your total outstanding dues.
It’s usually offered when you're unable to repay your credit card dues due to financial hardship, job loss, or a medical emergency.
To initiate settlement, contact SBI customer care or visit your nearest branch to explain your financial situation and request a settlement.
If approved, SBI will offer a one-time settlement amount. This is often 40–70% of your total dues, depending on your case.
Once you accept and pay the settlement amount, your credit card account is marked as “settled” – not “closed” or “paid in full.”
A “settled” status will hurt your credit score and stay on your credit report for up to 7 years, affecting future loan approvals.
Always ask for a settlement letter in writing and a No Dues Certificate after payment to avoid future legal or recovery issues.
Consider alternatives like EMIs or credit counseling before choosing settlement, as it should be your last resort.
SBI credit card settlement can offer relief, but comes with long-term credit impact. Know the risks, and act wisely to regain financial stability.