The interest on outstanding balance of the Kotak Urbane credit card is 3.5% monthly (42% annually).
The interest rate on the Kotak Urbane Credit Card is the fee charged by the credit card provider on the amount you borrowed using your card. But, you will be charged an interest rate only if you have not paid the total outstanding amount due within the due date or the interest-free period, whichever is applicable. Now, Kotak Mahindra Bank charges an interest rate of 3.50% per month which is 42% per annum on the Kotak credit cards.
How is the Kotak Urbane Credit Card Interest Rate Computed?
The APR or the annual percentage rate is the rate that your credit card provider levies on you annually on the amount due on your card. But, actually banks charge a monthly interest rate on the balance amount on a daily basis. You can compute your daily interest rate by dividing the annual percentage rate by the number of days in the year.
For example: If the monthly interest rate charged by your credit card provider is 20%, the formula used to compute the daily interest rate is
Interest Rate = [(Total Outstanding Amount x 20% per month x 12 months) X number of days] / 365 days.