Revolving Credit
What is the revolving credit facility?
When you receive your bill, you have the flexibility of selecting any of the following payment options:
Pay the total amount due.
Pay only the minimum amount due.
Pay any amount ranging from the minimum amount due to the total amount due.
Should you opt for either of the last two options, then the unpaid amount due is carried forward to the next billing period. This is referred to as the revolving credit facility
When do I start paying interest on new purchases if I am already revolving credit?
If you are revolving credit, fresh purchases attract interest from their respective dates of purchase.
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What is the balance transfer facility?
Worried about the outstandings on your other-banks’ credit cards? Are the interest rates bothering you all the time? Here is a special offer just for you, which would surely help you get rid of your worries on interest charges. The ICICI Bank balance transfer facility allows you to transfer your outstandings from your other-banks’ credit cards to your ICICI Bank Credit Card at interest rates as low as 0%. Various attractive schemes like the ‘0% Balance Transfer offer’ and the ‘Life Time Balance Transfer offer’, along with zero documentation and crisp draft delivery make the ICICI Bank Credit Card balance Transfer programme the best in the market.
Will fresh purchases also attract interest if I use the balance transfer facility?
Your fresh purchases get the normal credit period for the first month. However, if at the end of the first billing cycle, your total amount due (including balance transfer) is not reduced to zero, your fresh purchases attract interest from the respective dates of purchase.
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Are there any interest charges?
If you make a payment for the Total Amount Due before the Payment Due Date, no interest charges are applicable. Thus you can enjoy interest-free credit from the date of purchase to the date on which the payment is due. This can be as high as 50 days for Silver Card members and 52 days for Gold/Titanium/Platinum/Signature Card members!
If you send a payment for the "Minimum Amount Due" or pay any amount less than the "Total Amount Due", interest charges are applied on the outstanding amount and on any fresh charges that you incur subsequently. However, for certain transactions like cash withdrawals, interest charges would be applicable from the date of transaction till date of payment.
If there are some unpaid "Minimum Amounts Due" of previous statements, then these will also be added on to the "Minimum Amount Due" of your current statement.
If you have for some reason exceeded your credit limit, then the amount by which you have exceeded the credit limit will also be added to the "Minimum Amount Due".
When will the interest charge stop?
If all outstanding charges are paid at any time, the interest charges will cease to apply immediately.
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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 Date
1-Aug
Details
Amt
1-Sep
Detail
Amt
Transaction Date
15-Jul
BATA
600
3-Aug
LEE
500
30-Jul
Cafe Day
100
Payment Date
20-Aug
Cash Paymt
600
1-Sep
Interest Charge
40.52
MAD
100
MAD
100
TAD
700
TAD
640.52
MAD - Minimum amount dueTAD-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
