1. What is HDFC Bank Credit Card Interest?

The HDFC Bank credit card interest is calculated monthly on your outstanding balance using the formula I = P × R, where P is the principal balance and R is the monthly interest rate (APR divided by 12).

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal balance (INR)
• \( R \) — Monthly interest rate (APR / 12, as a decimal)
• \( I \) — Monthly interest (INR)

Explanation: The calculator converts the annual percentage rate (APR) to a monthly rate by dividing by 12, then multiplies by your outstanding balance.

3. Importance of Interest Calculation

Details: Understanding your monthly interest helps in budgeting and debt repayment planning. HDFC Bank typically charges interest only if you don't pay your full balance by the due date.

4. Using the Calculator

Tips: Enter your current outstanding balance and the APR (annual percentage rate) of your HDFC credit card. Typical APR ranges from 24% to 48% annually.

5. Frequently Asked Questions (FAQ)

Q1: How is HDFC credit card interest calculated?
A: Interest is calculated daily but charged monthly on the outstanding balance if not paid in full by the due date.

Q2: When is interest charged on HDFC credit cards?
A: Interest is charged when you carry a balance past the due date or don't pay the full amount due.

Q3: How can I avoid paying interest?
A: Pay your full statement balance by the due date each month to avoid interest charges.

Q4: Does HDFC charge interest on EMI transactions?
A: No, EMI transactions have a fixed interest rate included in the EMI amount, not additional monthly interest.

Q5: What is the typical APR for HDFC credit cards?
A: APR typically ranges from 2% to 4% per month (24% to 48% annually), depending on the card type and customer profile.