There is a time when every credit cardholder delays at least one credit card payment. It is the time when the bank makes money by charging interest and by levying late payment fee. If you have an ICICI Bank credit card, the primary thing you must know is how much you interest you need to pay when you are not able to pay your ICICI credit card bill in full. Interest calculation and the way it is levied on outstanding credit card dues is a bit different from other loan facilities. Hence, every ICICI cardholder must know how the interest is calculated, which credit card transactions attract interest and other details to make sure their credit card bill is in control.
Mentioned below all the important aspects related to interest rate charged by ICICI Bank on different credit cards it offers.
Interest rate not only varies from one bank to another but also from one credit card to another, even though the card is issued by the same bank.
ICICI Bank levies interest charges when the total amount due on a credit card is not paid on or before the payment due date. In such cases, interest will be charged on the total due amount from the transaction date and also and on all new transactions till the time the previous outstanding is cleared in full.
Interest is also levied when you withdraw cash using your ICICI credit card. For cash withdrawals or cash advances, interest will be charged from the date of withdrawal till the amount is paid back in full. Even when you repay the cash advance on or before the due date, the interest charge is applicable.
ICICI bank charges interest rate from 1.25% per month to 3.50% per month depending on various factors including cardholder’s credit history, purchase behaviour, repayment pattern and others. Though the rate of interest is typically disclosed in the terms and conditions documents of a credit card, it may change at any point of time based on the bank’s sole discretion. Credit cardholder may or may not be intimated about the same as per the bank’s policy.
ICICI bank charges interest at the monthly percentage rate on all the applicable transactions from the date of transaction till the amount is cleared in full. Interest charges will be debited to the cardholder’s account on a monthly basis till the time they are cleared in full.
When you carry forward any outstanding due from the previous month, interest charge will be calculated using average daily balance method. The interest in this case is applicable to balanced carried forward and to fresh billings.
When you withdraw cash using your ICICI credit card, interest charge will be calculated using the same method.
If you choose to pay an amount less than the total outstanding on your credit card, the entire due will attract finance charges along with all the new transactions till the time the previous dues are cleared in full.
ICICI Bank uses a standard formula to calculate the interest rate in case all the previous dues are cleared and the account does not hold any outstanding amount.
(Outstanding amount x Interest rate per month x 12 months x no of days ) / 365
The interest charged by ICICI Bank varies from one credit card to another. Listed below are various credit cards offered by the bank along with their monthly percentage rate of interest and annual percentage rate of interest.
|ICICI Bank Credit Card Variant||Monthly percentage rate||Annual percentage rate|
|ICICI Bank Instant Platinum Credit Card||2.49% per month||29.88% per annum|
|ICICI Bank Instant Gold Credit Card||2.49% per month||29.88% per annum|
|ICICI Bank Fixed Deposit Instant Credit Card||2.49% per month||29.88% per annum|
|Jet Airways ICICI Bank Credit Cards||3.5% per month||42% per annum|
|All other ICICI Bank Credit Cards||3.4% per month||40.80% per annum|
Interest rate changes periodically based on the usage pattern, repayment behaviour and credit utilisation patterns.
If you pay the total amount due (TAD) on your ICICI credit card before the due date, the interest charges will not be applied. However, finance charges will be levied on the following cases.
ICICI Bank provides a grace period for all credit cardholders during which the card transactions on the card do not attract any interest. Hence, the period is termed as interest-free period. In simple terms, a credit card interest-free period is the time between the transaction date and the payment due date. It thus varies for every transaction made on your ICICI credit card. Typically, ICICI offers an interest-free period ranging from 15 to 45 days. If you make the payment within the period, i.e., on or before the due date, no interest will be charged provided you don’t have any carry forwarded balance from the previous statements.
Let’s see how ICICI calculated credit card interest-free. For instance, if your ICICI credit card billing period is 15th April to 15th May, the payment due date will be 2nd June, considering a grace period of 45 days.
Assuming that you have paid your previous month’s due on time the grace period for different transactions conducted during the billing period is as follows -
Thus, the grace period varies from one transaction to another depending on the date of purchase. However, if you carry forward previous months balance, there won’t be any interest-free period. Also cash advances or cash withdrawals are charged from the date of withdrawal till they are paid back in full. Hence there is no interest-free period for cash advances.
The interest calculation sheet for a particular month can be obtained by placing a request to ICICI Bank using the below channels.
If you raise the request through phone call, a physical copy of the interest calculation sheet will be sent to your registered mailing address within 7 days from request initiation date. In case, you sent an e-mail a soft copy of the sheet will me mailed back within 3 days.
When you clear the entire outstanding due as per the statement within the due date, ICICI stops charging interest immediately.
ICICI Bank typically considers 5% of the total outstanding on the account as minimum amount due.
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 to increase.