Credit limits are being slashed and the interest rates charged by credit card companies are gradually rising and we can blame all this on the current liquidity crunch.
In the last two months, major credit card companies like State Bank of India (SBI) and HDFC have increased the range of the slabs under which their interest rate varies. Every bank charges an interest rate within a specified band on the credit it provides to its customers.
SBI, India’s largest public sector bank has decided to increase the upper limit of the interest rate slab from 3.1% to 3.35% from this month. Cash advance fees, which is charged on using the credit card to access hard cash from atms is also expected to increase.
HDFC, one of the leading private sector credit card issuer has also decided to increase its slab ceiling last month from 2.95% to 3.25%.
Other credit card issuers are also contemplating similar moves, which will result in higher credit card interest rates and a lowered credit limit.
Other card companies, which have not increased their interest rates recently, are said to be charging customers a higher rate within the current slabs or decreasing the credit limit offered.
Filed under: Home loan rates | Tagged: credit card companies, credit limit, HDFC Bank, interest rate, interest rate slab, SBI Bank
