If you have missed the credit card payment deadline, you will be liable to pay an interest rate on the outstanding amount. The interest is usually high (between 2.5 to 4 per cent) and charged on a monthly basis. It is worth remembering that interest starts not from the due date of payment but from the date of transaction.
This means the 45-day interest free period is offered only when the payment is made on time, and not after the deadline is over while the amount remains outstanding.
So, if you hold a credit card and have missed the due date, remember that you will be liable for the payment of interest which will start accruing from the date of card’s usage.
It is noteworthy that credit card interest rates offered by banks typically vary based on such factors as the type of card, creditworthiness and promotional offers. Here we list out the interest rates of different banks aka lenders.
Top 7 banks charge interest rates on late payments
1. HDFC Bank: The interest rates on HDFC Bank Credit Card can go up to 3.4 percent per month apart from late payment charges, reveals HDFC Bank website. Check this link for further details.
2. ICICI Bank: This private lender charges a maximum interest of 3.75 per cent per month besides late payment charges. For more details, you check ICICI Bank’s website at this link.
3. Kotak Mahindra Bank: Kotak Mahindra Bank charges an interest of 3.5 percent a month (42 percent). Besides, there are late payment charges as well. For details, one can visit Kotak Mahindra Bank’s website here.
(Source: Banks’ websites; rates as on Oct 28, 2024)
4. Yes Bank: Yes Bank charges an interest of 3.80 per cent per month (45.6 per cent annually) on Yes Bank Elite+ card. For more details, one can visit Yes Bank website here.
5. SBI Card: SBI Card charges up to 3.50 per cent per month (42 percent per annum) from the transaction date and is subject to change at the discretion of SBI Cards & Payment Services. For further details, one can visit the SBI Card website here.
6. PNB: PNB Credit Cards charge an interest of 2.95 percent on a monthly basis (annualized percentage rate at 35.89 per cent). For further details, one can contact PNB portal here.
7. Axis Bank: Axis Bank charges an interest of 3.6 percent per month per month. For more details, one can visit this Axis Bank website’s link.
