BUSINESS
Credit Card rates
Credit card interest rates are what banks charge when a card holder does not pay off the full balance by the due date. In other words if you only pay the minimum due or you miss the payment due date the balance will start to accrue interest. In India most banks provide an interest free period which is between 18 to 55 days and that varies by card type and billing cycle.
In 2026 credit cards are the most used payment method in India. We see them used for shopping, travel bookings, paying bills, online subscriptions, dining, fuel and EMI payments. Also due to this growth we have seen a great variety in the types of cards which banks are putting out there with different interest rates, annual fees, cash back offers, reward points, airport lounge access and EMI options.
A credit card interest rate is what the bank charges for unpaid charges. Usually this rate is listed out monthly by the banks, also they report it annually as an APR.
For instance if a bank reports an interest rate of 3% per month what this really means is that for the year you will be paying nearly 36% per annum. This is the way your credit card bill grows to a large number if you do not pay it off in full and on time.
Most credit card providers offer an interest free period for when the full bill is paid by the due date. This period usually is between 18 to 55 days.
No interest is charged when:
Different banks report different finance charges for unpaid credit card bills. In most cases the monthly interest rate ranges from 2% to almost 4% which in turn depends on the card type and customer profile.
HDFC Bank credit cards see a charge of 2% to 3.75% per month.
SBI Card interest rates range from 2% to 3.50% per month.
ICICI Bank’s credit cards may charge as high as 2.5% to 3.75% monthly.
Axis Bank credit card interest rates typically range from 3% to 3.60% per month.
Kotak Mahindra Bank credit cards typically charge between 2.75% to 3.50% monthly.
IndusInd Bank credit card interest rates vary from 2.5% to 3.83% per month.
YES Bank credit cards can have an interest rate of 2.75% to 4% per month.
American Express is in the range of 3% to 3.5% for their monthly finance charges.
Most banks report annual percentage rates for monthly charges which may go over 40% per year should the balance not be paid at the time due.
Different users may get different interest rates from the same bank. Banks usually check several things before deciding the rate.
Credit Score
People with a good credit score often receive better offers and lower interest charges.
Payment History
If payments are delayed regularly, banks may increase the rate of interest.
Type of Credit Card
Premium cards may offer lower rates and better features compared to entry-level cards.
Income Level
Higher income applicants may get better credit terms and higher credit limits.
Banks also allow customers to convert purchases into EMIs. In 2026, credit card EMI rates generally start from around 10% per annum and may go higher depending on the bank and repayment period.
Some online shopping websites also offer:
When managed properly, credit cards can be useful for everyday spending. Some common benefits include:
In 2026 credit cards are the most used payment method in India. We see them used for shopping, travel bookings, paying bills, online subscriptions, dining, fuel and EMI payments. Also due to this growth we have seen a great variety in the types of cards which banks are putting out there with different interest rates, annual fees, cash back offers, reward points, airport lounge access and EMI options.
What is Credit Card Interest Rate?
A credit card interest rate is what the bank charges for unpaid charges. Usually this rate is listed out monthly by the banks, also they report it annually as an APR.
For instance if a bank reports an interest rate of 3% per month what this really means is that for the year you will be paying nearly 36% per annum. This is the way your credit card bill grows to a large number if you do not pay it off in full and on time.
Interest-Free Period on Credit Cards
Most credit card providers offer an interest free period for when the full bill is paid by the due date. This period usually is between 18 to 55 days.
No interest is charged when:
- The full bill amount is paid on time
- There is no carried-forward balance
- No cash withdrawal has been made using the card
- Only the minimum amount due is paid
- Payment is delayed
- Cash is withdrawn from an ATM
- EMI payments are missed
Popular Credit Card Interest Charges in India
Different banks report different finance charges for unpaid credit card bills. In most cases the monthly interest rate ranges from 2% to almost 4% which in turn depends on the card type and customer profile.
HDFC Bank credit cards see a charge of 2% to 3.75% per month.
SBI Card interest rates range from 2% to 3.50% per month.
ICICI Bank’s credit cards may charge as high as 2.5% to 3.75% monthly.
Axis Bank credit card interest rates typically range from 3% to 3.60% per month.
Kotak Mahindra Bank credit cards typically charge between 2.75% to 3.50% monthly.
IndusInd Bank credit card interest rates vary from 2.5% to 3.83% per month.
YES Bank credit cards can have an interest rate of 2.75% to 4% per month.
American Express is in the range of 3% to 3.5% for their monthly finance charges.
Most banks report annual percentage rates for monthly charges which may go over 40% per year should the balance not be paid at the time due.
Credit Card Rate-Affecting Factors
Different users may get different interest rates from the same bank. Banks usually check several things before deciding the rate.
Credit Score
People with a good credit score often receive better offers and lower interest charges.
Payment History
If payments are delayed regularly, banks may increase the rate of interest.
Type of Credit Card
Premium cards may offer lower rates and better features compared to entry-level cards.
Income Level
Higher income applicants may get better credit terms and higher credit limits.
Charges for Cash Withdrawals from Credit Cards
- Cash withdrawal fee
- Interest from the withdrawal date
- GST on charges
EMI Interest Rates on Credit Cards
Banks also allow customers to convert purchases into EMIs. In 2026, credit card EMI rates generally start from around 10% per annum and may go higher depending on the bank and repayment period.
Some online shopping websites also offer:
- No-cost EMI
- Low-cost EMI
- Instant discount offers on selected cards
How to Lower Interest Charges on Credit Cards
- Pay the full bill amount before the due date
- Avoid cash withdrawals from ATMs
- Do not spend beyond your repayment capacity
- Keep track of billing dates
- Use EMI only when needed
- Maintain a good credit score
Advantages of Appropriate Credit Card Use
When managed properly, credit cards can be useful for everyday spending. Some common benefits include:
- Cashback offers
- Reward points
- Travel benefits
- Airport lounge access
- Fuel surcharge waiver
- EMI conversion facility
- Online shopping discounts
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