Indusind Charged 7000 Interest

Yes it is on whole amount usually which is bollocks. I hope RBI regulates this too and asks banks to collect interest on only pending amount.

romilq wrote:

Yes it is on whole amount usually which is bollocks. I hope RBI regulates this too and asks banks to collect interest on only pending amount.

rip my money

Demondealer wrote:
rip my money

talk to them, tell them there is no money as its march

they may give u some discount

The interest charged is from txn date not from due date

after payment of 114K, interest is charged only on bal amount(3.6K) +any new txns

basically bank says if u want free credit period then clear total amount by due date else every txn is charged(interest) from day1 until u pay

That's how it has been. Along with levying interest on the whole amount, they'll leave a derogatory remark in the credit report After paying so much should have somehow paid the remaining small amount

balle-balle. play stupid games, win stupid prizes.

bhai, you couldn't manage 3623 from anywhere?!

DimeDime wrote:

balle-balle. play stupid games, win stupid prizes.

bhai, you couldn't manage 3623 from anywhere?!

yea . could have paid that remaining using  same  credit card at minimal charge.

Simbha3 wrote:
yea . could have paid that remaining using  same  credit card at minimal charge.

i mean i could have, but i though interested on 3.6k is very less so why bother

@dimedime

i didnt know they will charge on whole amount. it was a mistake

So does this mean if I have 1 rs pending, I will be charged on the full statement dues.

caks2006407 wrote:

The interest charged is from txn date not from due date

after payment of 114K, interest is charged only on bal amount(3.6K) +any new txns

basically bank says if u want free credit period then clear total amount by due date else every txn is charged(interest) from day1 until u pay

@Demondealer this is much more logical, probably you had transacted as well in the mean time, which was included while counting the charges.

If you pay only the monthly 'minimum due amount', which is generally about 5 percent of the total amount of the bill, to the lender/issuer, you can repay the outstanding amount over a period of time. This process is commonly known as revolving credit facility. The interest-free period stands withdrawn on the non-payment of the entire credit card dues.

https://economictimes.indiatimes.com/wealth/bor...

Seinfeld wrote:

So does this mean if I have 1 rs pending, I will be charged on the full statement dues.

Yes it will be on entire amt, see the below calculation from the same timeofindia article you posted.

romilq wrote:

Yes it is on whole amount usually which is bollocks. I hope RBI regulates this too and asks banks to collect interest on only pending amount.

This is the entire basis of credit card industry. When you use credit card then basically you are taking loan from credit card issuing bank & you can think that bank is also taking loan from its customers in turn(aka savings acc/FD holders getting interest) so if you don't pay the total due amt by the due date then credit card company is correct in charging you for interest on entire amt because that is what they paid to get that loan which was then given to you.

Demondealer wrote:
rip my money

Too many rent txns?

contact customer care and tell will compliant to rbi and so on with procuring minimum due payment details they will reduce the intrest charged

Demondealer wrote:
i mean i could have, but i though interested on 3.6k is very less so why bother

@dimedime

i didnt know they will charge on whole amount. it was a mistake

If this is your first time you can ask them to reconsider. I had a miscalculation once and I requested them via call they reversed the charges for me including Gst..

For this to work your card atleast has to be a year old

Drdrake wrote:

If this is your first time you can ask them to reconsider. I had a miscalculation once and I requested them via call they reversed the charges for me including Gst..

For this to work your card atleast has to be a year old

OP This will work if you are old customer and had paid the previous dues in time without any delay. I had issues with SBI and HDFC due to payment settlement was 3 days after due date but after mailing them they waived off charges. 

guest_999 wrote:
Too many rent txns?

lol no, i just used it for some international purchase. i could have easily paid the 3.6k but i ignored thinking i will be only charged on 3.6k costly lesson i guess

Demondealer wrote:
lol no, i just used it for some international purchase. i could have easily paid the 3.6k but i ignored thinking i will be only charged on 3.6k costly lesson i guess

It is not insignificant amt for an intl txn. Why even use indusind card unless forex markup is 1% or lower?

Talk to customer care they will partially waveoff charges. I have done it several times in past

guest_999 wrote:
This is the entire basis of credit card industry. When you use credit card then basically you are taking loan from credit card issuing bank & you can think that bank is also taking loan from its customers in turn(aka savings acc/FD holders getting interest) so if you don't pay the total due amt by the due date then credit card company is correct in charging you for interest on entire amt because that is what they paid to get that loan which was then given to you.

Just because it is like it has been always doesn’t mean we cannot wish or lobby for change. Even in traditional loans you only pay interest on the outstanding amount. Everyone understands credit card loan works in a different way that was not the point. 

siyaram4470739 wrote:

Talk to customer care they will partially waveoff charges. I have done it several times in past

what should i even say for them to consider? u done it in indusind? or other bank cards?

Demondealer wrote:
what should i even say for them to consider? u done it in indusind? or other bank cards?

You can mention that you've maintained your account well and have paid dues always on time and request them to give you waiver as one time gesture. Request for full interest waiver and wait for approval, they should give you something for sure..

I have done in Indusind and HDFC too when the entire bill was missed to pay by mistake.

10ven wrote:

That's how it has been. Along with levying interest on the whole amount, they'll leave a derogatory remark in the credit report After paying so much should have somehow paid the remaining small amount

romilq wrote:

Just because it is like it has been always doesn’t mean we cannot wish or lobby for change. Even in traditional loans you only pay interest on the outstanding amount. Everyone understands credit card loan works in a different way that was not the point. 

You missed the point. If A took loan from B for 30 days of Rs.10000 & B took same amt loan from C as he didn't have the money to give loan to A & after 30 days A return 9k to B & say take interest only on remaining 1K which I will pay after a week then it is not right because B still have to pay full interest on 10k for 29 days to C.

guest_999 wrote:
You missed the point. If A took loan from B for 30 days of Rs.10000 & B took same amt loan from C as he didn't have the money to give loan to A & after 30 days A return 9k to B & say take interest only on remaining 1K which I will pay after a week then it is not right because B still have to pay full interest on 10k for 29 days to C.

Alright I get it. That is what is happening here keeping in mind the amount we borrow through credit card and banks having to provide us interest ? 

Ransome wrote:

I think the minimum amount due should be less than the Total amount due in this case and I assume that he has paid the minimum amount due. So, it shouldn't be an issue in the credit report, right? Apart from getting charged for the interest amount. 

Oh yes. I totally forgot factoring in the minimum due thing.

romilq wrote:

Alright I get it. That is what is happening here keeping in mind the amount we borrow through credit card and banks having to provide us interest ? 

Yes, from an individual perspective an amt of 1-2 lakhs might not seem anything but banks/credit cards have millions of customers so total amt involved is in crores & they can't say that for this 2 lakh amt follow a different rule while for the rest follow that rule. Banks/credit cards provide loan not from their own money but always from others' money & that is why they need to charge interest for entire amt if cc holder fail to pay full amt by the due date. The interest charged in this case does not 100% goes to bank's own pocket but a portion of it.

guest_999 wrote:

Yes, from an individual perspective an amt of 1-2 lakhs might not seem anything but banks/credit cards have millions of customers so total amt involved is in crores & they can't say that for this 2 lakh amt follow a different rule while for the rest follow that rule. Banks/credit cards provide loan not from their own money but always from others' money & that is why they need to charge interest for entire amt if cc holder fail to pay full amt by the due date. The interest charged in this case does not 100% goes to bank's own pocket but a portion of it.

Got it 👍

Seinfeld wrote:

So does this mean if I have 1 rs pending, I will be charged on the full statement dues.

just pay 10 rupees 🙂🙂🙂

guest_999 wrote:
You missed the point. If A took loan from B for 30 days of Rs.10000 & B took same amt loan from C as he didn't have the money to give loan to A & after 30 days A return 9k to B & say take interest only on remaining 1K which I will pay after a week then it is not right because B still have to pay full interest on 10k for 29 days to C.

Perfect explanation bhai.