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Credit Card Interest Rate 2023

Updated on January 25, 2023 , 24594 views

One of the most important features of a credit card is the interest rate. Knowing it beforehand can be quite beneficial for you as it is directly linked to your cost of borrowing.

Credit Card Interest Rate

The interest rate varies according to the creditors and even the type of card you choose. The following article explains the credit card interest rate and the technicalities involved in it.

What does Credit Card Interest Rate mean?

Whenever you make a purchase from your credit card, you have to repay the borrowed amount within a certain period of time. Usually, it is between 20-50 days. If you pay in this duration, you won't be liable for any interest rates. But, if you Fail to repay on or before the due date, the Bank will impose an interest rate, which typically ranges from10-15%.

When is the Interest Rate Applicable?

An interest rate is charged if you fail to pay your existing debt and credit card dues on time. The amount of interest you pay each month can vary based on your current credit card balance.

Top Credit Cards Interest Rate 2023 in India

Here are some of the interest rates for the top credit cards in India-

Credit Card Interest Rate (pm) Annual Percentage Rate (APR)
HSBC VISA Platinum Credit Card 3.3% 39.6%
HDFC Bank Regalia Credit Card 3.49% 41.88%
American Express Membership Rewards Credit Card 3.5% 42.00%
SBI Card Prime 3.35% 40.2%
SBI Card Elite 3.35% 40.2%
Citi PremierMiles Credit Cards 3.40% 40.8%
HDFC Regalia First Credit Card 3.49% 41.88%
ICICI Bank Platinum Chip Credit Card 3.40% 40.8%
Standard Chartered Manhattan Platinum Credit Card 3.49% 41.88%
American Express Platinum Reserve Credit Card 3.5% 42.00%

Interest rates mentioned are subject to change at bank’s sole discretion

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Interest Rates of Top Credit Card Banks

Bank Interest Rate (pm)
Axis Bank 2.50% - 3.40%
SBI 2.50% - 3.50%
ICICI Bank 1.99% - 3.50%
HDFC Bank 1.99% - 3.60%
Citibank 2.50% - 3.25%
Standard Chartered Bank 3.49% - 3.49%
HSBC Bank 2.49% - 3.35%

Low-Interest Rate Credit Cards in India

Following are the best credit cards Offering low-interest rate-

Bank Credit Card Interest Rate (pm)
SBI SBI Advantage Platinum Credit Card and SBI Advantage Gold & More Credit Card 1.99%
ICICI ICICI Bank Instant Platinum Credit Card 2.49%
HDFC HDFC Infinia Credit Card 1.99%
ICICI ICICI Bank Instant Gold Credit Card 2.49%

0% (Zero Percent) Interest Rate Credit Cards

Here are some of the top 0% interest rate credit cards-

Bank Credit Card
Discover it Discover it Balance Transfer
HSBC HSBC Gold Mastercard
Capital one Capital one quicksilver cash rewards card
Citi Bank Citi Simplicity card
American Express American Express cash magnet card

How to Calculate Credit Card Interest Rates?

Credit card interest rates are calculated based on the APR mentioned by the respective banks. APRs are meant for the entire year and not on a monthly Basis. In order to calculate the interest rates for monthly dues, the monthly percentage rates will be applied for transactions. By the end of every month, you ought to pay a total sum based on your monthly interest rate.

The credit card interest rate calculation process can get a bit complicated. So, for better understanding here is a case scenario you can consider-

Date Transaction Amount (Rs)
10th September Purchased 5000
15th September Total Amount due 5000
15th September Minimum Amount due 500
3rd October Payment made 0
7th October Purchased 1000
10th October Payment made 4000

  Interest calculation @30.10% p.a. on statement dated October 15 is as follows:

  • Interest on 5000 for 30 days(from September 10 to October 9) is Rs. 247.39
  • Interest on Rs. 4000 for 6 days (from October 10 to October 15) is Rs. 19.78
  • Interest on Rs. 1000 for 9 days(from October 7 to October 15) is Rs. 10.6

Total interest ‘A’ is Rs. 277.77

  • Late Payment charge ‘B’ is Rs. 200.
  • Service Tax @15% ‘C’ is 0.15 of (A+B) which is Rs. 77.66.
  • Principal Outstanding amount ‘D’ Rs. 2000.

Total due(A+B+C+D) as per Statement dated October 15th is Rs. 2555.43

Conclusion

If you want to get a Good Credit card interest rate then you must have 750+ Credit Score and have no outstanding debts. Else you would have a hard time getting the credit card that you desire.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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