RBL Credit Card Interest Rates

When Does RBL Bank Charges Credit Card Interest Rates?

RBL Bank Credit Card finance charges are applied when the full credit card bill is not paid by the due date. The charge accrues daily until the outstanding amount is fully settled.

The following are the scenarios when credit card interest is charged:

1. Cash Withdrawals: Interest is charged from the transaction date until the withdrawn amount is repaid.
2. Partial Payment:
   1. Interest is calculated on the total outstanding amount from the transaction date to the date of partial payment.
   2. After partial payment, the remaining balance accrues interest until the next statement generation date.
3. Carrying Balance Forward: If the outstanding amount is carried forward to the next billing cycle, interest is applied to the balance.

How are Credit Card Interest Rates Calculated by RBL Bank?

1. It is important to know what the Annual Percentage Rate (APR) is before understanding the calculation of interest rate. APR a rate that your credit card provider charges you annually on the balance amount on your card.
2. However, in reality, banks charge a monthly interest rate on the balance due amount on a daily basis. You can calculate your Daily Periodic Rate by taking the Annual Percentage Rate and dividing it by the number of days in the year.

For example:

If the monthly interest rate charged by your credit card provider is 3.99%, the formula used to calculate the interest rate you land up paying on an average daily balance method is as follows:

Interest Rate = [(Total Outstanding Amount x 3.99% per month x 12 months) X number of days] / 365 days.

Interest Rate Charged on RBL Credit Cards

Interest rates charged by RBL Bank may go up to 3.99% p.m. or 47.88% p.a. However, the rate of interest charged by the bank may differ from credit card to credit card, your relationship with the bank, and on the usage of your card.

Which RBL Credit Card Transactions Attract Interest Charges?

Apart from not paying the total due amount within the due date, there are many other activities or transactions on your card that attract interest rates. Some of them are as follows:

1. When you choose to pay the minimum due amount and carry a part of the total outstanding amount into the next billing cycle.
2. When you do not pay the minimum amount due within the due date, late fees and other charges will be levied.
3. When you use you credit card to withdraw cash. Cash advances are expensive but when you use this benefit when you are aboard, a high cash advance fee will be charged.
4. When you use your credit card in an international location, additional charges will be levied.

RBL Credit Card Interest-free Period

RBL Bank offers an interest-free period that ranges from 17 to 50 days depending on the date of the transaction. This feature is applicable only if your previous month's balance is paid in full. If you make the total outstanding balance within the interest-free period, you will not be charged anything additional. Which means that you have enjoyed the credit facility at a zero percent rate.

Example for grace period:

Let us assume that the payment due date is on 2 July 2023, and if the previous month's dues have been paid in full-

Interest free period for a purchase on 16 May 2023 is 16 May 2023 to 2 July 2023: 47 days.

For a purchase on 15 June 2023, the interest free period is 15 June 2023 to 2 July 2023 = 17 days.

If only a part of the payment has been made, there will be no interest-free period and interest charges applicable.

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