INTEREST CHARGE CALCULATION. Interest charge on purchases and interest charge on cash or check advances are calculated separately. We use a method called “average daily balance (including new purchases)” as follows: PURCHASE BALANCE SUBJECT TO PERIODIC INTEREST CHARGE: If you pay your New Balance at the beginning of a billing cycle in full by the Payment Due Date, no Periodic Interest Charges will be imposed on purchase transactions for the billing cycle. For balances not paid in full, we will determine the daily purchase balance by (a) starting with the day’s beginning purchase balance for the Account, (b) adding any purchases or other charges posted that day, (c) subtracting any payments or credits posted that day, and (d) subtracting any outstanding cash and check advances, Interest Charges or Account fees, (e) dividing the sum of (a) to (d) by the number of days in the billing cycle. CASH AND CHECK ADVANCE BALANCE SUBJECT TO PERIODIC INTEREST CHARGES: We will determine the cash and check advance balance subject to periodic Interest Charges by (a) starting with the day’s beginning cash balance for the Account, (b) adding any cash and check advances, (c) subtracting any payments or credits posted that day, and (d) subtracting any outstanding purchases, Interest Charges or Account fees,
INTEREST CHARGE CALCULATION. Interest is calculated on a daily basis at the end of every day, basis the current outstanding balance of the customer. The interest is computed separately for different plans (e.g. retail transaction, cash advance, etc.) For cash advances, the interest is levied from the date of the transaction, however, for retail transactions interest becomes due only when the customer does not pay off his her full beginning balance by the Payment Due Date. Under the following criterion, the customer does not incur interest: • Beginning balance on the Statement Date is zero. • Beginning balance on the Statement Date is not zero but the Cardmember pays off 100% of his full beginning balance by the Payment Due Date. if not paid by the due date, interest is also levied on the outstanding Membership Fees, NSF Fees, Interest, Service Tax, Over Limit and Late Payment Fees. Example of Interest Charge calculation: If only part of outstanding amount is paid by the payment due date If the beginning balance as on the Statement Date i.e. say 2nd of a month is Rs. 10,000 and only Rs 700 is paid by the payment due date, the interest calculation will be as illustrated below : Transaction: Date Transcation Amount 02-Jan-2013 Statement Date Total Amount Due 10000 Minimum Amount Due-500 10-Jan-2013 Hotel Transaction 4000 15-Jan-2013 Mobile Xxxx Payment 2000 22-Jan-2013 Payment Credit 500 02-Feb-2013 Statement Date Total Amount Due 15300 Minimum Amount Due-765 Interest on the amount due will be charged as below: Daily Interest = Outstanding amount *(3.5%*12 months)/ 365 Interest Calculation: Transation Amount Period Number of Days Interest Amount 4000 10-Jan-2013 to 02-Feb-2013 24 110.46 2000 15-Jan-2013 to 02-Feb-2013 19 43.73 10000 (Last month outstanding) 03-Jan-2013 to 21-Jan-2013 19 218.63 9300 (Remaining Balance after adjusting payment of 500) 22-Jan-2013 to 02-Feb-2013 12 131.18 Thus the total interest charged would be: Rs 504.00 As the Cardmember has not paid the previous month’s outstanding balance in full so all future transactions will bear interest from the day of transaction. Service tax will be levied at the applicable rate on the interest amount.
