HDFC Credit Card Interest Rates

Interest rate on credit cards is one of the most ignored aspects by many of the credit card users. Every credit card issuer charges interest on credit card overdue payments on a monthly basis, and so does the HDFC Bank. HDFC credit cardholders must know how the bank charges interest rate on unpaid credit card bills, what kind of payments attract interest charges, how the interest rate is calculated and other related details specific to their credit card to make the most of their credit card’s interest-free period feature and revolving credit facility.

Technically called finance charges, a credit card interest charge is the penalty levied or the interest collected by HDFC Bank in case you choose not to pay your credit card balance in full. This means when you choose to pay only the minimum amount due or an amount lesser than that the bank will charge interest on the remaining amount and all new transactions till the outstanding is cleared in full.

Do note that the interest will be levied only when you don’t pay your credit card bill in full or when you withdraw cash using your HDFC credit card.

How Are Credit Card Interest Rates Calculated By HDFC Bank?

HDFC charges interest at a monthly percentage rate (MPR) on all the applicable transactions from the date of purchase till the amount is paid back in full. The finance charges are added to the monthly credit card billing statement till the outstanding is cleared in full.

• If you carry forward any outstanding amount from the previous month, the interest rate will be calculated by the average Daily Balance Method and will be applicable to all carry forwarded balances and also to fresh billings.
• If you withdraw cash using your HDFC credit card, the same average Daily Balance Method will be used to calculate the interest and it will be charged from the date of the transaction till the amount is paid back in full.
• If you avail of a revolving credit facility, which means you choose to pay an amount lesser than the total amount due, the entire outstanding amount will attract finance charges and all new transactions will also attract interest till the time the previous due is cleared in full.

Based on the daily balance method, HDFC calculates interest on a particular amount using the formula -

(Total Outstanding Amount x 13% per month x 12 months) X number of days] / 365 days

To this interest, it will add a late payment fee, and GST @18% on interest charges to calculate the total amount due on your HDFC credit card.

HDFC Credit Card Interest Rate 2023

Which HDFC Bank Credit Card Transactions Attract Interest Charges?

If you pay the total amount due (TAD) on your HDFC credit card before the due date, the interest charges will not be applied. Let’s see the cases when the finance charges are applicable on HDFC credit card transactions.

• When an HDFC credit cardholder chooses not to pay the total amount due before the due date
• When an HDFC credit cardholder chooses to pay the minimum due amount and carry a part of the total outstanding amount to the next billing cycle.
• When an HDFC credit cardholder avails of the cash advance feature or withdraws cash using the card

HDFC Credit Card Interest-free Period

Credit card interest-free period or grace period is the time between a HDFC credit card transaction date and the credit card payment due date. It hence varies for every transaction made on your HDFC credit card. Typically, HDFC offers an interest-free period of up to 50 days. If you make the payment within the interest-free period, i.e., on or before the due date, you don’t have to pay any interest. This means you have enjoyed the credit facility at zero interest.

FAQs on HDFC Credit Card Interest Rates

1. When will the interest charge stop on my HDFC credit card?

   When you clear the entire outstanding due as per the statement within the due date, HDFC Banks stops charging interest immediately.

2. How much is the minimum amount due on my HDFC credit card?

   HDFC Bank typically considers 5% of the total outstanding on the account as minimum amount due.

3. I paid the previous outstanding on my HDFC credit card in full before the due date, why did the bank still charge interest on cash withdrawal?

   Cash withdrawals, unlike card transactions, attract finance charges from the date of withdrawal till the amount is paid in full. Hence, the bank might have charged interest on your credit card. Instead of waiting for the due date, pay your current month’s bill to prevent interest charges from increasing.