I’m planning to apply for a Kotak credit card, and I’ve been reading up on the different fees and charges. One thing I’m still a bit unclear about is the interest rate on Kotak credit cards.
Can anyone help me understand what the interest rate typically is on these cards? I know the rate might differ depending on the card type, but I’ve heard that it’s usually in the range of 3.5% per month. Is that accurate? Does the interest rate change based on factors like the payment history or credit score?
The interest rate on Kotak credit cards is typically around 3.5% per month, which is about 42% annually. This means if you don’t pay off your full balance by the due date, you’ll be charged interest on the remaining amount.
I noticed that the interest is compounded monthly, so it can add up really quickly if you’re only making partial payments. For example, if you carry a ₹10,000 balance for a month, you could end up paying ₹350 in interest. And if you continue to carry the balance, the interest keeps growing on the new total, including the interest from the previous month.
It’s also important to remember that interest starts accruing immediately on any unpaid amount, whether it’s from a purchase, a cash withdrawal, or even your annual fee if you haven’t paid it off. So, if you know you’re not going to pay your full balance off in time, it’s a good idea to make partial payments or pay it off as soon as possible to minimize interest charges.
If you want to double-check your exact interest rate, I’d recommend calling Kotak customer service at 1860 266 2666 or checking your card’s terms and conditions, as sometimes the rate can vary depending on the card type or your payment history.