HDFC Credit Card Interest Rate

What is the HDFC Credit Card Interest Rate?

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While using an HDFC Bank credit card is extremely easy and rewarding, it is extremely important that you pay the total outstanding bill on time. In the event that you choose not to pay the total outstanding amount within the due date, the bank charges interest on the pending amount. The interest continues to be levied per month at a fixed rate on the balance as well as new transactions till the outstanding is cleared in full. This rate varies from one card to another and is known as the HDFC credit card interest rate.

ON THIS PAGE: When is HDFC Interest Rate Applicable| Calculate HDFC Interest Rate|Different HDFC Credit Card Interest Rates| HDFC Credit Card Interest Free Period |FAQs

When is the HDFC CC Interest Rate Applicable?

The HDFC credit card monthly interest rate is applicable under the following circumstances:

1. Late Payment: If you do not pay the total or minimum due on your HDFC Bank credit card by the due date, the bank will charge you a late payment fee.

2. No Payment Made: Interest charges on HDFC credit card will be levied if you miss paying the credit card bill completely.

3. Minimum Due/Amount Paid: HDFC credit card interest rate is also levied after the minimum due is cleared. So, if you just pay your minimum due amount and carry the balance to the next billing cycle, the bank will charge you as per the interest rate for the particular HDFC credit card.

One also has to take into consideration the credit card cash withdrawal charges as they too incur interest rates on HDFC credit cards. As these charges are levied from the date of withdrawal itself, it is critical that you pay back the entire amount in full at the earliest.

How is Interest on HDFC Credit Card Calculated?

To understand the HDFC credit card interest rate calculation, let us take a look at an example:

Interest charges on HDFC Credit Card are calculated using the following formula:

(outstanding amount*interest rate per month* 12 *no of days) / 365

• Interest on ₹15,000 for 23 days (November 19, 2021 to December 11, 2021)

(15,000*3.6%*12*23)/365 = ₹408.33

Once the payment of ₹2,000 is made, the amount pending is ₹13,000 (₹15,000 - ₹2,000)

• Interest on ₹13,000 for 3 days (December 12, 2021 to December 14, 2021)

(13,000*3.6%*12*3)/365 = ₹46.16

• Interest on ₹6,000 for 26 days (November 19, 2021 to December 14, 2021)

(6,000*3.6%*12*26)/365= ₹184.63

Total amount pending on the card on December 15,2021 is ₹19,000 (₹13,000 + ₹6,000)

With the card payment of 15,000 made against the credit card bill, the outstanding balance is ₹4,000

• Interest on ₹4,000 for 4 days (December 15, 2021 to December 18, 2021)

(4,000*3.6%*12*4)/365= ₹18.93

• Interest on ₹2,000 for 5 days (December 14, 2021 to December 18, 2021)

(2,000*3.6%*12*5)/365= ₹11.83

Total interest charged on December 18, 2021= ₹ 669.88 (₹11.83+₹18.93+₹184.63+₹46.16+ ₹408.33)

HDFC Bank Credit Card Interest Rates

 What is the HDFC Credit Card Interest-Free Period?

As the name suggests, this is the period of time between your last credit card statement generation date and the current due date, when no interest is charged on your HDFC credit card transactions. You can enjoy up to 50 interest-free days against a transaction depending on the transaction date.

Just remember, if you pay the total outstanding bill within the credit card payment due date, you will not be charged any interest on your transactions.

It might be useful to note that HDFC also provides three grace days from the payment due date if there is no payment overdue on your credit card. This is offered to accommodate the processing time of payments. However, if the payment is not received even after three days, the bank will flag your credit card account as 'past due' to the credit bureau. You will also be charged a late payment fee which would be computed from the payment due date as mentioned in your HDFC credit card statement.