Axis Bank Credit Card Interest Rate

Axis Credit Card Interest Rate

Axis Bank charges an interest rate anywhere between 3.4% to 3.6% per month depending on the credit card variant.

 

The interest rate is the fee charged on the borrowed amount on your Axis credit card. Axis Bank provides an interest-free period of up to 50 days to clear your dues. However, if you are unable to clear the dues during the interest-free period, the credit card interest charges are levied on the total outstanding amount.

 

Below listed are the Axis Bank credit card interest rates on top cards:

 

• Axis Bank MY ZONE Credit Card: 3.6% per month (52.86% per annum)

• Axis Bank NEO Credit Card: 3.4% per month (49.36% per annum)

• Axis Bank INDIAN OIL Credit Card: 3.4% per month (49.36% per annum)

• Axis Bank SELECT Credit Card: 3.6% per month (52.86% per annum)

• Flipkart Axis Bank Credit Card: 3.6% per month (52.86% per annum)

Disclaimer: Interest rates are subject to change. Please check with the lender before applying.

How is Axis Bank Credit Card Interest Rate Calculated

The interest rate on the Axis Bank credit card is calculated using the below-mentioned formula:

 

• Axis Bank Credit Card Interest Rate

[{(Total Outstanding Amount x Interest Rate per month x 12 months) x number of days} / 365 days]

 

To understand how the interest rate on Axis credit cards is calculated, let us consider the following example.

 

Suppose your outstanding credit card balance is ₹10,000 and you pay the minimum due or the partial amount of ₹5,000. The interest rate charged is 3.4% per month. The statement generation date is March 06, 2022, the payment due date is March 26, 2022 and the next statement date is April 06, 2022. The calculations would be as follows:

• Failure to Pay Due Amount

If the minimum amount due of ₹500 is not paid by March 26, 2022, then the Axis Bank credit card interest rate will be applicable against your outstanding balance. It will be calculated from the transaction date to the repayment date on a day-to-day basis. An additional late payment fee will be charged as the minimum amount due was not paid.

• Partial Amount Paid

If a partial payment of 50% (₹5,000) is made on March 21, 2020, and no other transactions are made till the next bill generation date, i.e. April 06, 2022, then an accrued interest is charged on the Axis Bank credit card. Accrued interest is the sum of the interest accumulated on the outstanding amount from the transaction date to the date of partial payment, and the interest accumulated on the balance from the date of partial payment to the date of the next statement generation.

The calculation for the same is as follows:

 

i) Interest accumulated on the outstanding amount from the transaction date to the date of partial payment:

(21x 10,000 x 49.36%) ÷ 365 = ₹283.99

 

ii) Interest accumulated on balance from the date of partial payment to the date of next statement generation:

(15 x 5,000 x 49.36%) ÷ 365 = ₹101.42

 

Thus, the total payable amount as interest is = ₹385.41 (₹283.99 + ₹101.42)

However, you need not do such heavy calculations to assess the interest rate on Axis Bank credit cards. Instead, you can simply use the Axis Bank credit card interest rate calculator to get an idea about the total interest to be paid against your statement.

When are Axis Bank Credit Card Interest Rates Applicable

The Axis Bank interest rates would be applicable when:

 

• You pay only the minimum amount due on your Axis Bank credit card

• The amount you pay is lower than the outstanding due on your card

• You do not pay your Axis Bank credit card bill on time

• You withdraw cash from ATM using your Axis Bank credit card

• You buy items on EMI

• On some international transactions