Credit Card Interest Rates in India

The credit card helps you spend more and earn more. This saves you from having to pay immediate money and helps you in case of urgent need of money. In addition to the reward points, it is accompanied by various cash back offers.

The interest rate on credit cards varies from lender to lender. It essentially depends on the type of credit card you choose based on your needs (card, travel card, etc.) and your salary that determines your repayment ability. The credit card interest rates calculator can help you calculate the interest rate shown on your credit score based on your monthly income, outstanding loans and credit score.

Factors Affecting Credit Card Interest Rates

Your credit score defines the interest rate of your credit card. Below are the factors that determine the interest rate of the credit card.

Payment history

It provides insurance for the repayment of the money that is loaned to you. The lender can see if you have paid your bills on time. In case you are found at fault, your credit score would fall accordingly and you would be required to pay a higher interest rate.


It indicates the amount of credit you owe. The calculation is based on your total available credit used. Less is better, but doing nothing is not good. In this way, the lender can follow your repayment habit, that is, if you borrow money, you are responsible and financially stable enough to repay it.


Your credit used on specific types of accounts, such as mortgages, car loans, credit cards and remittance accounts is also taken into account. And, if you combine different types of credit and manage them responsibly, you can benefit from the lower credit rating.

Duration of credit history

Your credit score is also influenced by the age of your credit history, that is, how long you have been using your credit. A lender would check the dates to know how many years you have been using the credit. What is the age of your oldest account and what is the average age of all your accounts?

If you have been able to keep a good CIBIL file that is not spoiled by late payments or other negative elements, your long history can help you get lower interest rates. If you are a beginner, a brief history may also be useful as long as you have made your payments on time and are not overloaded with delayed repayments.

New credit

CIBIL also rates you based on the number of accounts you have applied or new credit purchases you have made in a given period. Increasing the number of credit purchases made together can have a negative impact on your credit score, making everyone wary of your repayment ability. This implies a higher credit risk because people tend to open new accounts when they have cash flow problems or are considering new debt.

For example, if you have a car loan and you have applied for a home loan, the lender will review the total of your existing monthly debts to determine the amount of the IMS that you can afford to pay monthly. And if you have recently applied for several new credit cards, the lender will get an image stating that you plan to make a large number of credit card purchases in the near future, and you may be unable to repay your EMIs in the near future. mortgage loan. Lenders who are skeptical about your repayment ability would offer you higher interest on a loan or a new credit card purchased.


Types of credit used

The credit combination is always preferable to one type of credit. The combination may include credit cards, store accounts, installment loans and mortgages. It also looks at the total number of accounts you have.

Low interest credit cards in India

An interest rate between 1.5% and 2.99% is considered low for credit cards in India. The table below shows the low-interest credit cards offered by the popular banks in India-


Bank Credit Card Interest Rate p.m.
SBI SBI Advantage Platinum Credit Card Up to 2.50%
ICICI ICICI Bank Instant Platinum Credit Card 2.49%
HDFC HDFC Infinia Credit Card 1.99%
Citibank Citi PremierMiles Credit Card 3.10% to 3.50%
Kotak Kotak League Platinum Credit Card 3.50%
Amex American Express Platinum Travel Credit Card 3.35%
SBI SimplySAVE Advantage SBI Card Up to 2.50%
Citibank Citibank Rewards Credit Card 3.25%

How is interest on the credit card calculated?

Most credit card users read the statement they receive each month and make the payment. But it is very important to know how this amount is calculated. Let’s try to understand it with an example.
Here, we assume that the person has no outstanding balance on their credit card, the statement date is the 18th of each month and the interest rate is 2.5% per month.

Date Transaction Amount
10th July Purchased Jewellery 15000
15th July Purchased Clothes 5000
18th July Statement Date*
15th August Payment to Credit Card 2000
16th August Groceries Purchase 1000
17th August Payment to Credit Card 15000

Since the payment was made after the due date, the entire outstanding balance will attract interest charge.

  • Interest on Rs 15,000 @ 2.5 per cent p.m. from 18 July to 15 August (i.e. for 28 days)

[(15000 x 2.5 x 12 x 28)/365]/100 = Rs 345.20

  • Interest on Rs 13,000 @ 2.5 per cent p.m. from 15 August to 17 August (i.e. for 3 days)

[(13000 x 2.5 x 12 x 3)/365]/100= Rs 32.05

  • Interest on Rs 5,000 @ 2.5 per cent p.m. from 18 July to 17 August (i.e. for 30 days)

[(5000 x 2.5 x 12 x 30)/365]/100 = Rs 123.28

  • Interest on Rs 3,000 @ 2.5 per cent p.m. from 17 August to 18 August (i.e. for 2 days)

[(3000 x 2.5 x 12 x 2)/365]/100 = Rs 4.93

  • Interest on Rs 1000 (fresh spends @ 2.5 per cent pm from 16 August to 18 August (i.e. for 3 days)

[(1000 x 2.5 x 12 x 3)/365]/100 = Rs 2.46
Total Interest= 345.20 + 32.05 + 123.28 + 4.93 + 2.46= Rs 507.92

Hence the total amount due will be-

Rs 4000 (Rs 3000 from previous period and Rs 1000 fresh spends) + Rs 507.92 (Interest) + Rs 350 (Late Payment Fee) = Rs 4857.92


How to use the EMI Credit Card Calculator?

In the example above, you may find that a number of factors affect your credit card bill. It is very difficult to calculate this amount manually. To make it easier for customers, a number of banks provide the EMI Credit Card Calculator on their website. You must fill in the information in the fields to display the amount of your bill for the month.