Question

Look online to find an interest rates for each of the following:

a) Credit Card

What is the rate charged for overdue monthly balances? Clearly state your answer.

b) Car Company (for financing a new car)

Include your sources (links) AND a screencapture of where on the page you found the information.

Answer 1

a) Credit card interest rates depend on the banks' policy and is also affected by other factors such as amount owed, length of credit history etc. The monthly rate varies between 2 to 3.5 %p.m. Here is a screenshot of few banks' credit interest rate.

Credit Card Interest Rate p.m. Bank SBI Advantage Platinum Credit Card SBI Up to 2.50% ICICI Bank Instant Platinum Credit Card 2.49% ICICI HDFC Infinia Credit Card 1.99% HDFC Citibank Citi PremierMiles Credit Card 3.10% to 3.50% Kotak Kotak League Platinum Credit Card 3.50% American Express Platinum Travel Credit Card Amex 3.35% SimplySAVE Advantage SBI Card SBI Up to 2.50% Citibank Rewards Credit Card Citibank 3.25%

Source: paisabazzar.com

b) The banks have certain eligibility criteria for financing cars such as minimum age of client, annual salary. They also ask for identity proof and residential proof, The car loan interest rate can 9-10% p.a. Here is a list:

Bank/Lender Car Loan Interest Loan Processing Fees Name Rate 0.50% of Loan Amount +ST SBI 9.25% onwards Min: Rs.950.00 +ST, Max: Rs.9100.00 +ST Rs.2825 to Rs.5150 (depends on the loan amount) 9.35% onwards HDFC Bank Rs.2500 to Rs.5000 (depends on the loan amount) ICICI Bank 9.55% onwards Axis Bank 9.50% onwards Rs.3500 to Rs.5500 IDBI Bank 9.95% onwards NIL Punjab National 1% of the loan amount. (Max-Rs.6000) 9.25% onwards Bank Rs.500/-plus S.T. or 1 % of loan amount. Min: Rs.500 and Max: Bank of India 9.25% onwards Rs.10,000 Up to 2 Lakhs: Rs.1.25 per thousand. Minimum: Rs.125/- Syndicate Bank 10.1% onwards Above 2 lakhs: Rs.200 per lakh.

Source: paisabazzar.com