Attention! Credit cardholders of this bank to pay more interest rate from January 2020. Deets inside

Follow us on

Credit Card alert! Are you credit cardholder and not making outstanding payments on time? Then this news is for you. Citibank India has increased its credit card interest rate on revolving credit. The bank in its statement said that the revised interest rates applicable on the Citibank Credit Card account will be effective January 2020 statement. 

Citibank India has hiked the interest rate on credit card outstandings by up to 480 basis points from 37.2 per cent to 42 per cent per annum. This will be applicable on opening balance and further transactions including cash withdrawals.

“We wanted to inform you that the interest rate on your Citi credit cards would change effective January 2020 statement and will be applicable on opening balance and further transactions including cash withdrawals,” the bank said in a communication to its customers.

“As you know only if customers choose to pay less than the full amount of the monthly bill or do cash withdrawal transactions, the interest rate for using the revolving facility applies,” it said.

Credit Card interest rate:

To be noted, it is mandatory for any credit cardholder to make a minimum payment of 5 per cent of the credit card outstanding amount by the due date. If credit cardholder fails to pay the mandatory credit card amount results in a penalty which can be Rs 300 or more in most credit cards. The balance can be carried forward to the next month.

Citibank credit card interest rate calculation:

Assuming an interest rate of 42 per cent per annum (3.5% per month) on the Card, interest will be levied as follows:

As the Citibank has hiked the interest rate,  it will become more expensive for the credit card holder to revolve credit. Therefore, one has to make sure to pay the entire Citibank credit card due amount well before the last date in order to save on interest cost.