Interest Rate

Cheapest Credit Card Interest Rate in India

Cheapest Credit Card Interest Rate in India from the top credit card providers. The interest rates on Credit cards are vary within the issuers and the different variants of the cards. The finance charges on credit card, which is commonly known is charged in India as higher as 49% per annum or up to 3.99% per month.

The Interest rates on the credit card are not linked to Credit Score of the individual holders, hence specific to the variants of the credit cards. It means the Interest rates or finance charges are common to every type of credit card holders.

The interest rates are charged on the outstanding monthly bills which have not been paid within the last date. There are no interest charged when you clear your credit card dues on time as per the statement cycle.

Check out the Cheapest Interest Rate on Credit Card in India

BankCredit Card TypeInterest Rate (PM)
HDFCHDFC Infinia Credit Card1.99%
SBISBI Advantage Platinum Credit Card1.99%
ICICIICICI Platinum Credit Card2.49%
Canara BankCanara Platinum Credit Card2.50%
Bank of BarodaBoB Select Credit Card3.25%
Citi BankCiti Rewards Credit Card3.15%

Note : The Interest Rate may change in due time. Please verify it before applying.

This is to remember that a Interest Rate between 1.5% to 3% is considered good as far as Credit Card is concerned. The low interest credit card are generally offered by the Public Sector Banks i.e. SBI , Canara Bank or Bank of Baroda.

Interest Rate of Top Popular 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%

When is Interest charged on the Credit Card ?

As per the term and condition specified by the credit card providers, the financial charges are levied only in case of non payment of full dues within the last date of the statement cycle. The Interest rates are charged on the undue portion of the bill outstanding. The conditions for charging the interest rates are :

  • The full statement bill is overdue beyond the last date
  • When the minimum payment is made and interest rates are charged on the residual amount
  • When you have withdrawn cash from an ATM using your credit card

Zero Interest on Credit Card

There is no interest charged on the bill amount during the interest free credit period as stipulated while issuing the credit card. Generally, all the credit card service providers are allowing the 50 days of interest-free period to the holders depends on the different type of transactions. The interest-free period is not applicable to:

  • Cash withdrawal on Credit Card
  • Any residual amount of payment from the previous statement period.

For example – The statement generation date for your credit card is 1st of every month and bill due date is 20th of the month. In such case, the purchases made on 2nd of the month will have the free interest period of 50 days. Where as,  purchase made on 1st of the month will not get any free interest period.

Also Find – Best Credit Card Loan with Lowest Interest Rate 2021

Compound Interest on Credit Card outstanding

This is to remember that the Interest rate charged on the credit card is compounded on a daily basis for an unpaid amount. This is the reason for non payment of Credit Card bill are debt trap for individuals.

Credit Card Interest Rate Calculator

Use our Credit Card interest rate calculator to calculate the interest rate charged on your credit card dues.

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