APR (Annual Percentage Rate)
Short answer
APR is the Annual Percentage Rate — the yearly interest rate charged on unpaid credit card balances. Indian cards typically run 36–48% APR, which is roughly 3–4% per month (indicative, as of 2026). This is the number that makes unpaid card debt so dangerous.
What it means
APR is the price of not paying your bill in full, expressed per year. Your statement usually shows it per month instead, because a monthly figure looks smaller.
Reading it correctly
| On your statement | Annual equivalent |
|---|---|
| 2.5% per month | ~30% APR |
| 3.5% per month | ~42% APR |
| 3.99% per month | ~48% APR |
Rates are indicative and vary by bank, card and customer, as of 2026. Your exact rate is in your card's schedule of charges.
Interest is not charged only on the part you left unpaid. Under the RBI Master Direction on credit cards, once the total amount due is not paid in full, interest may be levied from the date of the transaction on the outstanding amount.
The common mistake
Assuming APR only applies to the portion you did not pay. It does not: once you fail to clear the bill in full, interest applies to your entire balance, and new purchases lose their grace period as well. That is why the minimum due is such an expensive habit.
How to make it irrelevant
Pay the Total Amount Due, in full, before the due date. Do that and your card's APR is a number you never experience. See how to pay ₹0 in charges.
All figures on this page are indicative and dated. Rates and fees differ by bank and change over time. Always verify with your bank's official schedule of charges.
Frequently asked questions
Why do banks show a monthly rate instead of APR?
Because 3.5% per month reads far gentler than 42% per year, even though they describe the same money. Both numbers appear in the schedule of charges; multiply the monthly rate by twelve for a quick annual view.
Does APR apply if I pay my bill in full?
No. If you clear the Total Amount Due before every due date, no interest is charged at all and the APR never touches you. It applies only to balances carried past the due date, and to cash advances from day one.
Sources
The regulation and official pages this page is checked against. If one of them disagrees with us, it wins.
- Master Direction — Credit Card and Debit Card (Issuance and Conduct) Directions, 2022 — Reserve Bank of India
- FAQs on the Credit Card and Debit Card Master Direction — Reserve Bank of India
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