HDFC Bank, the market leader in credit cards, has hiked the finance charge (interest charged on rolled-over balance), late payment fee, and minimum over-limit fee from September 1, 2020. The spike in these rates, which are already quite high, has made it all the more essential for borrowers to exercise extra caution in handling their card dues.
The bank has increased the finance charge from 41.88 per cent to 43.20 per cent on most of its credit cards. The late payment fee has been raised for all credit cards (except Infinia) from Rs 950 to Rs 1,100 for credit card bill amounts of Rs 25,000-50,000; and to Rs 1,300 for bill amounts of more than Rs 50,000. The minimum over-limit fee on its cards (except Infinia) has been increased from Rs 500 to Rs 550.
Another major player, SBI Cards, had increased its late payment fee on July 1 this year from Rs 600 to Rs 750 for bill amount of Rs 1,001-10,000, and from Rs 800 to Rs 950 for bill amounts above Rs 10,000.
IndusInd Bank also plans to increase its late payment fee for certain bill amounts from October 1, 2020. Other players may also hike their charges in the near future. "When one of the leading players increases charges, others tend to follow suit," says Pankaj Bansal, chief business development officer, BankBazaar.com.
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