Credit cards are convenient, but they can become costly if you miss timely repayments. The interest rates imposed by banks can significantly affect your personal finances and credit score. Here’s a rundown of the current interest rates for July 2024 and some important eligibility criteria to keep in mind.
Credit Card Interest Rate for July 2024
| Company | Interest Rate/Finance Charges (Per Annum) |
|---|---|
| Bank of Baroda (instant EMI) | 16% p.a - RoI |
| Bank of Maharashtra | 34.44% p.a - Finance charges |
| Indian Overseas Bank | 30% p.a - RoI |
| Punjab National Bank | 35.89% p.a - Finance Charges |
| State Bank of India | Up to 42% p.a - Finance Charges |
| Axis Bank (retail purchases & cash) | 52.86% p.a - Finance Charges |
| CSB Bank | 45% p.a - RoI |
| Dhanlaxmi Bank | 22.80% p.a - Finance Charges |
| Federal Bank | 8.28% to 47.88% p.a - APR |
| HDFC Bank | 40.80% p.a - RoI |
| ICICI Bank | 45% p.a - RoI |
| IDBI Bank | 13% p.a - RoI |
| IDFC First Bank | Up to 47.88% p.a - Finance Charges |
| Induslnd Bank | 36% p.a - RoI |
| Karur Vysya Bank | 39% p.a - Finance Charges |
| Kotak Mahindra Bank | 35.88% to 42%p.a - RoI |
| Tamilnad Mercantile Bank | 24% p.a - Finance Charges |
| Yes Bank | 39% p.a - Finance Charges |
Rates on credit cards are accurate as of July 8, 2024.
1. Current Interest Rate Scenario:
- Following the Reserve Bank of India’s (RBI) decision to maintain the repo rate at 6.50%, most banks have also decided to pause any increase in credit card finance charges. This is a relief amid rising retail inflation.
2. Interest Rates on Credit Card Purchases:
- Major public and private sector banks have announced their finance charges for retail goods and cash transactions. These rates are applicable when you start your equated monthly installments (EMI).
3. Eligibility Criteria for Applying for a Credit Card:
- Credit History: A good credit score (typically 700 or above) is crucial.
- Repayment Capacity: Banks will evaluate your current income and credit utilization behavior.
- Age Requirement: You must be at least 21 years old to apply for a credit card.
4. Impact on Personal Finances:
- Timely repayment is essential to avoid high-interest charges that can hurt your credit score and overall financial health. Ensure you keep track of due dates and pay off your balances regularly.
5. Why It Matters:
- Understanding the interest rates and eligibility criteria helps you make informed decisions about using credit cards, managing debt, and maintaining a healthy credit score.
Stay informed and manage your credit wisely to avoid unnecessary financial strain.