Interest Rate

What is Annual Percentage Rate (APR) in Credit Card ?

Annual Percentage Rate (APR) – Annual Percentage Rate or APR is the Interest Rate which is charged to the credit card holders by the issuer of the card for the unpaid balance on annual rate of interest. The APR is always charged on the unpaid outstanding dues which have not been paid on time within the statement cycle. It is always charged after the statement free period.

The APR or Annual Interest Rate are charged by the issuers like SBI, Amex, HDFC, Canara Bank, RBL Bank, PNB etc up to 3.35%  MPR to APR of 48%.

Percentage Rate of  Best Credit Cards in India

BankInterest Rate per MonthAnnual Percentage Rate (APR)
AMEX MRCC3.50%42%
AMEX Smart earn3.50%42%
HDFC Regalia Credit Card3.49%41.88%
Yes First Exclusive2.4%32.92%
HDFC Diners 1.99%23.88%
Axis Burgundy Cards1.55%18.60%


Know the Monthly Percentage Rate – MPR is nothing but the the interest rate of a credit card. Any unpaid balance of the statement cycle gets carried over to the next statement, and MPR gets levied on that. For example, if your credit card has an MPR of 42%, you can calculate the daily interest rate by multiplying it by 12 and then dividing it by 365. And this gives you a daily interest rate of 1.38%.

If you had an outstanding balance of Rs. 1000 on your card, you would be charged INR 150.68 in daily interest. The more you repay on your monthly credit card bill, the less the interest your credit card will accrue. 

Credit Card Fees

Credit card fees is also known as annual fees or annual maintenance charge, credit card fees is an annual fee charged to use a credit card. In general, a card with higher annual fees offers more benefits and rewards than a card with lesser annual fees.

For example, American Express ® Platinum Reserve SM Credit Card charges INR 5,000 plus applicable taxes in the First Year and INR 10,000 plus applicable taxes from the second year onwards. Cardholders enjoy a range of benefits, including exclusive golf entry and airport lounge use. Similarly the SBI Credit Cards or HDFC Credit Cards are charging different Annual fees or joining fees on their various variants of the Credit Cards.

Also Know – Cheapest Credit Card Interest Rate in India

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