Archive · 10 Oct 2026
Credit Card Overlimit Facility: Fees, Eligibility and Six Factors
A credit card has a spending limit set by the bank.
An overlimit facility may let you spend more than that limit, but the bank does not have to approve every purchase.
You must agree to the facility before the bank can offer it, according to the rules described in the article.
If you use it, the bank may charge a fee, and interest may add to what you owe.
Spending more can also make it look like you rely heavily on borrowed money.
You still have to repay everything by the due date.
The article says to check your bank’s latest rules and fees first.
It should be used carefully, not as a replacement for savings or budgeting.
An overlimit facility may allow eligible cardholders to make transactions beyond their approved credit limit, but approval is not guaranteed.
The article says major Indian financial institutions generally charge about 2.5% of the amount above the limit, with minimum fees of roughly ₹500–₹600 plus applicable GST, as of October 2026.
Examples cited are minimum fees of ₹600 for SBI Card, ₹550 for HDFC Bank, and ₹500 each for Axis Bank and ICICI Bank.
Under Reserve Bank of India rules described in the article, issuers must obtain clear, explicit consent before extending the facility; they cannot arbitrarily charge cardholders who have not opted in.
Overlimit spending can add interest and fees, increase credit utilisation, and still must be repaid on time; the article advises checking the issuer’s current terms.
- Who
- Indian credit cardholders and the card issuers that offer overlimit facilities.
- What
- An explainer on overlimit facility eligibility, fees, potential effects, and six considerations before opting in.
- When
- The fee information is presented as of October 2026.
- Where
- India.
- Why
- The facility may help with an emergency expense, but it can involve fees, interest, higher credit utilisation, and repayment risks.
- Typical fee cited
- About 2.5% of the amount exceeding the assigned limit, with a minimum charge of approximately ₹500–₹600 plus applicable GST.
- SBI Card minimum fee
- ₹600.
- HDFC Bank minimum fee
- ₹550.
- Axis Bank minimum fee
- ₹500.
- ICICI Bank minimum fee
- ₹500.
- Consent
- The article says issuers must obtain clear, explicit cardholder consent before extending the facility.
- Credit utilisation guideline
- The article gives about 25–30% of the total credit limit as a general guideline.
- Approval
- Opting in does not guarantee that transactions above the limit will be approved.