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.