If you have somehow missed the deadline for your credit card payment, interest needs to be paid starting from the transaction date, not the payment due date.
2.5% to 4% high monthly interest rates are charged by many banks on the outstanding balance, meaning the 45-50 days interest-free period is only applicable when payments are made on time.
Interest rates of the seven major banks are as follows:
- HDFC Bank: Charges up to 3.4% per month.
- ICICI Bank: Interest rate up to 3.75% monthly.
- Kotak Mahindra Bank: Up to 3.5% per month.
- Yes Bank: Highest at 3.8% monthly.
- SBI Card: Charges up to 3.5% per month.
- PNB: Provides a lower rate at 2.95% monthly.
- Axis Bank: Up to 3.6% monthly.
Banks may also charge you late payment fees which makes it necessary for you to track and pay your credit card bills on time.
For detailed information, you can check this post from Mint: Credit Cards: Missed the deadline? Top 7 banks charge these interest rates for late payment
Checkout this post from our blog: ICICI Credit Cards Introduce Major Changes Effective November 15: Key Highlights