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How are interest rates calculated on an ICICI Bank Credit Card?

Interest charges are applicable only if the cardholder chooses the part payment facility (revolver facility). It is governed by a rate of interest. The interest accrual is on the daily outstanding balance. The monthly application of interest happens on the statement date. An example of calculation of interest, where the customer has made all retail transactions and no cash withdrawals:

As the customer has made a part payment, interest is charged on transactions of the previous month from the respective transaction date up to the statement date; then on the TAD (total amount due) from the statement date up to the part payment date; and then on the balance amount (after deducting part payment made from TAD) from the part payment date up to the next statement date.

Finally, if there are any fresh purchases interest is charged on them from the respective transaction date up to the statement date.
If the customer makes a part payment he does not enjoy interest-free days on fresh purchases.

*Formula: Principal amount x rate of interest x number of days.

Statement of Mr. Ramesh Kumar, holder of a Sterling Silver Card


Statement Date1-AugDetailsAmt1-SepDetailAmt
Transaction Date15-JulBATA6003-AugLEE500
 30-JulCafe Day100 
Payment Date 20-AugCash Paymt600
 1-SepInterest Charge40.52
 MAD100 MAD100 
TAD700 TAD640.52 


MAD - Minimum amount due
TAD-Total amount due
The interest of Rs.40.52 has been calculated as follows:
The total outstanding for the month of August was Rs.700 against which the Mr. Ramesh Kumar has made a part payment of Rs.600. Therefore, interest is charged.
1. On transaction dated 15-July-02 (Rs. 600) from transaction date up to statement date of 01.08.2002.
2. Then on TAD i.e. Rs.700 from statement date of 01.08.2002 up to part-payment date of 20-08.2002.
3. Then on balance 100 (700-600) from part payment date of 20.08.2002 to next statement date of     01.09.2002.
4. Finally, on the fresh purchases from 03-08.2002 up to 01.09.2002.

Calculation part:
600 x 2.95% x 18/30 days = Rs.10.62
100 x 2.95% x 3/30 days = Rs.0.30
700 x 2.95% x 20/30 days = Rs.13.77
100 x 2.95% x 11/30 days =Rs.1.08
500 x 2.95% x 28/30 days = Rs.14.75
Total = (10.62+0.30+13.77+1.08+14.75) = Rs.40.52