The receipt on Rs 100000
nobody reads out loud.
| Line itemwhat the statement actually charges |
NumberRs 100000 revolved |
| Interest rate on the cardsounds small monthly . it is 42 pct a year before compounding |
3.5 pct/mo |
| GST on every interest linetakes the real monthly cost to 4.13 pct |
+18 pct |
| Carry it for one yearpaying interest and GST only . balance untouched |
Rs 49560 |
| Pay only the 5 pct minimum due341 months to zero . total paid Rs 472861 |
28.4 years |
Illustrative . 3.5 pct monthly rate . 5 pct minimum due . 18 pct GST on interest . simulation verified
And the day you revolve even one rupee, the interest-free period is gone. Every fresh swipe starts billing from the transaction date, not the due date.