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Credit Card Interest Rates - Airtel Finance

Credit Card Interest Rates are also known as finance charges. It is the price you pay for transactions that don’t fall in the interest-free period category. It may vary for different card issuers. Also, the charges are usage-based, with no annual joining fee.

Interest Rates on Credit Cards - Airtel Finance

Enjoy low interest rates on your Credit Card.

  • Annual Interest rate as
    low as 3.6% per month

    Charged on monthly overdue on
    extended credit & cash advances

  • No hidden charges
    The interest is only charged
    on cash advances &
    outstanding credit

  • Competitive APR
    Annual Percentage Rate
    offered lower than most
    credit cards in the market

Steps to Apply for Credit Card

Big savings and cashback offers, now with Credit Card

  • Get Airtel Thanks
    Download the app and
    go to Shop section

  • Click on Airtel Finance
    You will see the Credit
    Card button

  • Click on Apply Now
    Now fill up the complete
    application form

  • Complete digital KYC
    The card will be delivered to
    you within 5-7 business days.

Features of Credit Card

Big savings and cashback offers, now with Credit Card

  • Low Joining Fees
    Just ₹500 joining fees

  • Credit limit
    Up to ₹5 lakh credit

  • Annual savings
    Save up to ₹16,000 annually

  • Low annual fee
    Just ₹500 as annual fee

  • 100% digital process
    Apply on the Thanks app

  • Relaxed eligibility
    18-70 years old

FAQs on Credit Card Interest Rate

1 .What is a credit card interest rate?

Every credit card offers users a certain credit limit. The user can take out money on credit up to that particular limit. If the outstanding bill is paid in full every month, no interest rate is charged. However, if the outstanding amount is not paid in full on the due statement date, the APR or Annual Percentage Rate is charged. Every credit card company sets different credit card interest rates.

2. How is credit card interest calculated?

Credit card interest is calculated using the following formula: (Number of days counted from the date of transaction x Outstanding amount x Interest rate per month x 12 months) / 365

3. What is the average credit card interest rate?

The average credit card interest rate is the median of interest rates charged for all credit cards available in the market.

4. How can I find out the interest rate on my credit card?

You can check your cardholder agreement or monthly credit card statements to find out the interest rate on your credit card. If you still can’t find it, you can ask your credit card company.  

5. What factors affect my credit card interest rate?

The following factors affect your credit card interest rate:

  • Credit score
  • Previous payment history
  • Outstanding amount
  • Relationship with the bank

 

6. Why is credit card interest so high?

Credit card interest rates depend on market situations. Additionally, a credit card is an unsecured loan. The banks don’t have an assurance or collateral for repayment in case of default. Therefore, the interest rate is high! 

7. How can I lower my credit card interest rate?

A good credit score and history can help you negotiate a lower interest rate with the credit card company. Your relationship with the bank can also help you lower your credit card interest rate. 

8. What is a promotional interest rate?

A promotional interest rate is offered by the credit card companies to the users. Under this offer, the interest rates on the credit card are lowered on your credit card balance for a given period of time. 

9. How long do promotional interest rates last?

Promotional interest rates usually last for 6 months. The banks need to clearly tell you about the interest rates after the promotional interest rate period is over.

10. What happens if I miss a credit card payment?

If you miss a credit card payment, your credit score will get affected. The credit card company may even reduce your credit limit due to a missed payment. Legal action can be taken from the bank’s side if the payments are missed continuously for a long term.

11. Can I negotiate my credit card interest rate with my bank?

Yes, you can negotiate the credit card interest rate with your bank if you have a good credit score, payment history, and pre-existing relationship with the bank.

12. How does my credit score affect my credit card interest rate?

Your credit score is an indication of your credit worthiness. If you have a good credit score, it indicates that your payment history and credit utilisation was good in the past. Banks consider these to offer you a right credit card interest rate as per the policy.

13. What happens if I only make the minimum payment on my credit card?

Minimum payments on your credit card are an easy way to manage outstanding credit. However, making minimum payments will attract an interest rate every month on the outstanding amount.

14. What is the difference between APR and interest rate on a credit card?

APR is the annual interest rate charged on the credit card’s outstanding amount. Whereas interest rate on a credit card is charged on a daily periodic rate, based on the APR.

15. Will the rate of interest for credit cards change frequently?

The APR charged on your credit card is usually variable in nature. It changes as per the market situation. Therefore, the interest rate for credit cards may change frequently. It is the bank’s duty to inform you about the changes.

16. How does the lender determine my interest rate for a credit card?

Credit companies usually consider the credit score, current market conditions, and payment history to determine the interest rate for a credit card. Most importantly, if your credit score is high, then the interest rates will be lower.

17. When should I pay my credit card bill to avoid interest?

You should pay your credit card bill in full before or on the due date to avoid interest. Any delay from the due date will result in interest being charged on the outstanding bill.

18. Can the credit card company change my interest rate?

Yes, credit card companies hold the sole right to change the interest rate periodically. However, banks need to inform the customers before any such change in the interest rates.

19.What is a credit card balance?

The credit card statement is an important document that has all the details of the transactions that you make on the credit card. The credit card statement contains information about your purchases, your credit balance, minimum amount payable, and more. It is issued after every credit card cycle ends.

20. What should I do when my credit card is lost?

In case, your credit card gets lost or stolen, then you should proceed to block it immediately. Get in touch with the customer support team of your credit card and provide all the necessary information needed to get the card cancelled.

21. Is there any special offer for Airtel users while using a credit card?

If you have a Credit Card, then you can get cashback worth up to 25% on Airtel prepaid, postpaid, broadband, and DTH bill payments when you use the Airtel Thanks app.   

22. Can non-Airtel users also apply for a credit card?

Yes, non-Airtel users can also apply for the Credit Card and reap its many rewards and benefits.

23. What does 'minimum due' mean on a credit card statement?

Minimum due on a credit card refers to the minimum amount that you must pay so that you can enjoy the facilities of your credit card. It is only a small fraction of the total outstanding amount that you are yet to pay.

What are Credit Card interest rates?

Airtel has partnered with Axis Bank to launch a joint credit card named Airtel Axis Bank Credit Card. The Credit Card is one of the cash back and offer oriented credit cards that help the consumer save up to Rs. 16,000 every year! Moreover, the interest rate charged by the bank is comparatively lower than other credit card companies. Applying for this credit card is also very easy, since you need very less credit card documents and the eligibility criteria for this credit card are also relaxed.

The Credit Card interest rate is charged on the outstanding amount on the card. The interest rates are charged annually and on a daily basis if the user doesn’t pay the bill in full before or on the due date. You can easily not pay any interest by clearing your dues on time. In addition, credit cards also come with credit card bill payment offers. So, remember to always pay your credit card bills and get cashbacks!

Currently, there are multiple privileges and benefits offered by the Airtel Axis Bank Credit Card. Some of them are mentioned below:

  • Welcome Benefits (eVoucher of Rs. 500 on the first transaction done within 30 days). This is a limited time offer
  • Credit card cashbacks for payments or purchases done using the card (Multiple offers)
  • Complimentary lounge access on Airports
  • 1% fuel surcharge waiver 

Looking to get the best credit card in New Delhi, Mumbai, Bangalore or other cities? Choose the Airtel Axis Bank Credit Card now! Use the credit card for extra savings on everything - starting from paying your rent with the credit card to funding your college expenses as a student credit card and more.

What is Annual Percentage Rate (APR) and how is it different from Interest Rate?

The Annual Percentage Rate (APR) is a broad measure of the cost of borrowing money or the return on an investment. It differs from the interest rate, in that it includes not only the interest costs, but also additional fees and charges related to the loan or investment.

Interest rates are a simple percentage of the loan amount charged by the lender for the use of their money. They are calculated on an annual basis but typically charged monthly. Interest rates are often the first factor people consider when comparing loan options.

However, the APR provides a more comprehensive view of the true cost or return of the loan or investment. It takes into account the interest rate but also includes any fees or additional costs associated with the loan. These might include origination fees, closing costs, and service charges.

For example, if two loans offer the same interest rate, but one has high fees and the other has low or no fees, the loan with the higher fees will have a higher APR.

Do note that if you apply for a credit card against FD, the APR might be much less in comparison because of the deposit.

In essence, while an interest rate simply tells you the basic cost of borrowing money, the APR tells you the total cost of borrowing money on an annual basis. Therefore, when comparing loans or investments, it's often more beneficial to compare APRs rather than just interest rates, to get a better understanding of the total cost or return.

How to get the lowest interest rates on credit cards?

You can negotiate a lower interest rate on credit cards by keeping your previous payment history and credit utilisation in check. Credit card companies and banks look at your credit score and history thoroughly, to decide whether to approve your credit card application or not and what interest rate to offer on credit cards. If you are planning to apply for a credit card, keep the following pointers in mind to negotiate for a lower interest rate:

  • Keep your credit utilisation to 20-30% of the approved limit.
  • All your payments for other commitments like personal loans, car loans, and other credit cards should be on time without any defaults for at least 6 months. 
  • Your credit score should be between 700 – 900 for negotiating a lower interest rate.

Interest Rate for Top 6 Most Popular Credit Cards in 2024

Nowadays, almost every financial institution offers a credit card and people have a vast array of options to choose from. Lots of things are taken into consideration

when opting for the right credit card. Here, we enlist the rate of interest for the Top 10 popular credit cards of 2024:

Credit Card

Interest Rate

Cash Advance Fee

Joining Fee

Annual Fee

Key Benefits

SBI Prime Advantage Credit Card

1.99% per month

3.5% per month

₹2999

₹2999

Earn up to 10 reward points by shopping at departmental stores, dining, etc.

Airtel Axis Bank Credit Card

3.6% per month

N/A

₹500

₹500

Credit limit up to ₹5 lakhs, 100% digital process

SBI Advantage Plus Credit Card

2.25% per month

2.25% per month

₹500

₹500

50 days credit period

HDFC Infinia Credit Card

1.99% per month

N/A

₹12,500

₹12,500

Complimentary Club Marriott membership, up to 50% off at 3000 restaurants in India, Zomato Pro and Dineout Passport membership

Tata Neu HDFC Infinity Credit Card

3.49% per month

N/A

₹1499

N/A

Up to 5% cashback on grocery purchases, no minimum spend requirements or monthly caps

BPCL SBI Card Octane

3.50% per month

N/A

N/A

N/A

25X reward points on fuel spends at BPCL outlets, 6.25% value back

Factors affecting rate of interest on credit cards

When a credit card company reduces the interest rate on a credit card, it means that cardholders will pay less in interest charges on their outstanding balances. This can help lower the minimum payment due on the card, as well as reduce the overall amount of interest that a cardholder will pay overtime.

Credit card companies may offer reduced interest rates for a variety of reasons, such as to attract new customers, retain existing customers, or as part of a promotional offer.

The following factors affect the rate of interest on credit cards:

  • Credit card company’s policy – Every credit card company has their own policy when it comes to interest rates. 
  • Applicant’s credit score – Your credit score (CIBIL, Experian, etc.) affect the interest rate charged by you on the credit card. A higher credit score means a lower interest rate and vice versa.
  • Market conditions – The economic conditions also affect the rate of interest charged on credit cards. 

Other factors like your payment history and relationship with the bank could also impact the interest rates on your instant approval credit cards.

What is meant by Reducing Interest Rates on credit cards?

Reducing interest rates for credit cards means lowering the amount of interest charged on the outstanding balance owed by the cardholder. Interest rates on credit cards can be quite high and reducing them can help make credit card debt more manageable and affordable for consumers.

Calculation of Credit Card Interest Rate

Credit card interest is usually calculated using the Annual Percentage Rate (APR). The APR represents the yearly cost of the funds borrowed, including fees and other costs.

The formula to calculate credit card interest is as follows:

Divide your APR by the number of days in the year. (APR/365)

Multiply the daily periodic rate by your average daily balance. (Daily Rate * Average Daily Balance)

Multiply this amount by the number of days in your billing cycle. (Daily Interest * Number of Days in Billing Cycle)

This will give you the interest charged for that billing cycle.

Remember, credit card companies often compound interest daily, which means they add the interest you owe to your balance every day, increasing the amount you owe and hence the amount of interest you'll be charged. It's important to understand this when managing credit card debt.

Calculation of Credit Card Interest Amount

Credit card interest, also known as finance charge, is the cost you pay for borrowing money through a credit card. Usually, this interest is expressed as an Annual Percentage Rate (APR). However, the actual amount of interest you pay is calculated on a daily or monthly basis.

To calculate your credit card interest, you first need to understand your daily periodic rate (DPR), which is your APR divided by 365 (days in a year). For example, if your APR is 18%, your DPR will be 0.049% (18% ÷ 365).

Next, you need to find out your average daily balance, which is the sum of your balance on each day of the billing cycle divided by the number of days in the cycle.

To skip out on all these calculations, you can simply use a credit card EMI calculator.

Remember, if you pay off your balance in full every month, you usually will not have to pay any interest. However, this depends on whether your credit card offers a grace period.