Watch NRIs
Indian credit card may charge you upto 40% interest rate

  

New Delhi, June 21, 2005
Ashok sharma

If you are a NRI and doing business in India, think twice before applying Indian credit card. Their plastic money has too many hidden charges. Indian credit card holders pay one of the highest interest rates in the world.

• 2.90-2.95 per cent interest rate per month is very attractive rate there , it means you are paying more than 35% per year as compare to USA 15-16 per cent, UK 14-15.5 per cent, and Japan 13-14 per cent
• Even they promise you card is free but they charge as annual fee Rs 800-1,300
• Late payment fee is charged from Rs 300 to Rs 500 even cheque is in the mail
• Over limit charges are Rs 400-500 and cheque return charges of Rs 200- 250.
• 2.5 per cent gas surcharge at a petrol pump because no contract between gas companies and Banik issuing card
• Statement request charges after 3 month is Rs 100-300
• If last month balance is even Rs 1.00, you bought clothes of Rs. 15,000 then you must pay interest rate on this amount from the date of purchase

The reason of this high cost is- low volume and the people prefer to deal with cash.

• Tthere are less than 16 million credit card holders in India
• Tthere are less than 30 million debit debit card holderss in India

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