1. What is ICICI Credit Card Interest?

ICICI Bank credit cards typically charge interest when you carry a balance past the due date. The interest is calculated monthly based on your outstanding balance and the annual percentage rate (APR).

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

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

Explanation: The APR is divided by 12 to get the monthly rate, then multiplied by the principal balance to calculate the interest.

3. Importance of Interest Calculation

Details: Understanding how interest is calculated helps cardholders make informed decisions about payments and avoid accumulating excessive debt.

4. Using the Calculator

Tips: Enter your current credit card balance in INR and the APR (typically 36-48% for ICICI cards). The calculator will show the monthly interest that would accrue.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical APR for ICICI credit cards?
A: ICICI credit cards usually have APRs ranging from 36% to 48% per annum (3-4% monthly).

Q2: When is interest charged on ICICI credit cards?
A: Interest is charged when you don't pay the full outstanding amount by the due date.

Q3: How can I avoid paying interest?
A: Pay your credit card bill in full by the due date each month to avoid interest charges.

Q4: Does this include any additional fees?
A: No, this calculates only the interest. Late payment fees or other charges would be additional.

Q5: Is interest compounded daily?
A: Most credit cards calculate interest daily but charge it monthly. This calculator shows the monthly charge.