Credit card interest rates in India
Credit card interest rates in India are the highest of any mainstream credit product - typically 36% to 48% per annum. This guide explains how the charge is computed, when it applies, and how to structure your usage so it never applies to you.
By Rohan Desai·Senior Writer, Cards & Credit·reviewed by editor
Last updated: 15 June 2025
Finance charges by major issuer
| Issuer | Monthly rate | Annualised | Cash advance rate |
|---|---|---|---|
| HDFC Bank | 3.60% | 43.2% p.a. | 3.60%/mo + 2.5% withdrawal fee |
| SBI Card | 3.50% | 42% p.a. | 3.50%/mo + 2.5% withdrawal fee |
| ICICI Bank | 3.75% | 45% p.a. | 3.75%/mo + 2.5% withdrawal fee |
| Axis Bank | 3.55% | 42.58% p.a. | 3.55%/mo + 2.5% withdrawal fee |
| Kotak Mahindra | 3.5% | 42% p.a. | 3.5%/mo + 2.5% withdrawal fee |
| RBL Bank | 3.99% | 47.88% p.a. | 3.99%/mo + 2.5% withdrawal fee |
When interest actually applies
If you pay the total amount due in full by the due date, interest is zero. If you pay only the minimum amount due (or nothing), interest starts accruing on every transaction from the transaction date - not from the statement date. This is the single most misunderstood rule in credit-card pricing.
Other charges to know
- Cash withdrawal fee — 2.5% of amount, minimum ₹500
- Late payment fee — ₹100 to ₹1,300 by outstanding slab
- Foreign currency mark-up — 2% to 3.5% on international transactions
- Over-limit fee — 2.5% of the over-limit amount
- Card replacement — ₹100 to ₹250 per new card
How to avoid interest entirely
- Set up auto-debit for the full statement amount
- Never withdraw cash from your credit card
- Convert large purchases to EMI at the point of sale (lower rate)
- Keep utilisation under 30% of the limit
- Pay before the statement date, not just before the due date