How is interest rate calculated on a credit card?

Credit card interest rates are the charges that you pay on the borrowed amount of your Bajaj Finserv RBL Bank SuperCard. Credit cards come with easy accessibility, which makes them an essential financial instrument. The availability of competitive interest rates along with the power of 4 cards in 1 further makes Bajaj Finserv RBL Bank SuperCard one of a kind.
Interest rates are calculated based on Monthly Percentage Rate (MPR) and Annual Percentage Rate (APR).
The bill is generated at the billing cycle’s end, and the credit card user is required to pay this amount before the payment due date and grace period combined. In case you fail to pay it in time, interest is charged on the utilised credit limit for the billing cycle. The period of calculation is from the day of default up to the payment date.
The date of the transaction also affects interest calculation for a given billing cycle. Understand interest rate calculation with this example – If the billing cycle ends on the 20th of every month and comes with a grace period of 14 days, the last day for bill payment is the 5th of the next month.
Assume that there are two transactions, on 5th and 9th of January. If bill payment is made on 10th February, purchase made on 5th January will attract interest for five days in case of default. For transactions made on 9th January, interest calculation is only for one day.

Bajaj Finserv provides low-interest rate Credit Cards at 3.99% per month (47.88% per annum).

Credit card interest rates are only applicable if the cardholder fails to pay the minimum amount due within the grace period. The minimum amount may also contain the interest part. Hence, paying the total amount due helps cardholders avoid paying any additional interest.

How are interest rates calculated?

Credit Card interest rates are applied annually. Hence, the rate is also known as the Annual Percentage Rate (APR). However, the APR is calculated every month on transactions.

Credit cards with no annual fee

The annual fee is a charge required to renew a credit card. Bajaj Finserv provides credit cards with no annual fee.

Apply for a Bajaj Finserv Credit Card today and get low-interest rates credit card offers.

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