Do credit cards have interest?

Yes, credit cards in India charge interest if you do not pay the full statement balance by the due date. The interest rate, often referred to as the Annual Percentage Rate (APR), typically ranges from 36% to 42% per year.

• Interest is calculated on the average daily balance and compounded monthly.
• Paying only the 'Minimum Amount Due' prevents late fees but allows interest to accrue on the remaining balance.
• Cash advances and balance transfers usually start attracting interest immediately without any grace period.
• To avoid interest, always pay your total outstanding bill in full before the due date.