Bajaj Finserv RBL Bank SuperCards: Interest Rates

Deciphering the true potential of your Bajaj Finserv RBL Bank SuperCard requires an understanding of its interest rates. These rates, crucial for informed financial decisions, determine the cost of carrying an unpaid balance. This can ensure the maximisation of a rewarding credit card experience. Take control of your finances with your SuperCard.

Here are the interest rates for RBL Bank Credit Cards:

Disclaimer: The aforementioned fees and charges are subject to change at the issuer's discretion. Please refer to the issuer's MITC document for more details.

Given below are the factors that can impact your credit card interest rates greatly:

1. Credit Score

A significant factor is a higher credit score (ideally 750 and above) which can secure lower interest rates

2. Income

Higher incomes generally qualify for lower rates due to greater repayment capacity

3. Employment Status

Salaried individuals and self-employed professionals with stable incomes typically receive better rates

4. Existing Debts

High existing debt burden (loans or other cards) negatively impacts eligibility and leads to higher rates

5. Card Type

Premium cards with more benefits and rewards usually come with higher interest rates compared to basic cards

6. Credit Limit

Cards with higher limits often have higher rates, reflecting the larger potential credit risk

7. Introductory Offers

Some cards offer introductory 0% Annual Percentage Rate (APR) periods but revert to regular rates after the promotion ends

8. Interest Rate Type

Fixed rates remain constant, while variable rates can fluctuate based on market conditions

9. Late Payments

Even a single late payment can significantly damage your credit score and lead to higher rates and penalty charges

10. Balance Transfer Fees

Transferring debt from other cards may incur fees, impacting your overall costs

Credit card interest rates are calculated based on a combination of factors specific to your card and your financial situation. Here's a breakdown of the key elements:

• Outstanding Balance

This refers to the unpaid amount remaining on your credit card at the end of your billing cycle. It serves as the base upon which interest accrues.

• Monthly Interest Rate (MPR)

This is the interest rate applied to your outstanding balance each month. It's determined by:

1. Your credit score: Higher scores lead to lower MPRs

2. Card type: Premium cards with more benefits typically have higher MPRs

3. Promotional offers: Introductory periods might offer 0% APR, but the standard MPR applies afterwards

• Number of Days

Interest is usually calculated based on your average daily balance during the billing cycle, not just the ending balance. This means they consider the outstanding balance on each day and divide the total by the number of days in the cycle.

• Formula

The basic formula used to calculate your interest is:

 

Interest = (Outstanding Balance x Monthly Interest Rate x Number of Days) / 365

 

Let’s consider the following example:

Outstanding Balance: ₹50,000

Monthly Interest Rate: 12.5%

Number of Days: 28

 

Hence, 

Interest = (₹50,000 x 12.5% x 28) / 365

Interest = 479.45

 

Note: The calculations shown above are tentative and may not match the actual interest levied on your credit card dues. Please speak to your credit card issuer before making any credit card-related decisions.

An interest-free period on a credit card refers to a specific timeframe during which you avoid paying interest charges on your purchases. 

 

This period typically begins on the statement date (when your monthly bill is generated). It extends for a set number of days, usually ranging from 18 to 55 days. This depends on the card issuer and specific card offering.

1. Not Applicable to Cash Advances or Fees

The interest-free period only applies to purchases made with your credit card. Transactions like cash advances or annual fees incur interest from the date of the transaction.

2. Full Payment Required

To qualify for the interest-free period, you must pay your entire outstanding balance by the due date stated on your monthly statement. Any remaining balance, even a small amount, will accrue interest from the transaction date.

3. Benefits Responsible Credit Card Usage

The interest-free period encourages responsible credit card usage by rewarding timely payments. It allows you to manage your finances effectively and avoid unnecessary interest charges.

 

Notes:

• The specific duration of the interest-free period and any applicable terms and conditions will vary depending on your card issuer and specific card offering. Always refer to your monthly statement or contact your card issuer for details.

• Late payments can significantly impact your interest-free period and result in immediate interest charges from the transaction date.