Interest Charge Calculation. We impose interest on each User Account using the average daily balance method (including new transactions). To calculate interest, we first calculate a separate daily balance for each balance on your User Account. (For example, current purchases, balance transfers, cash advances, and different promotional balances. Your balances are shown on your Account Statement.) To calculate the average daily balance, we take the beginning cash balance of your account each day, add any new cash advances, and subtract any payments, credits, non- accruing fees, and unpaid Interest Charges. We add any new transactions, interest, or fees and subtract any new credits or payments allocated to that balance and make other adjustments. We treat a daily balance less than zero as a balance of zero. We add a transaction to the daily balance as of the transaction date. We add a transaction fee to the same balance as the transaction. We generally add other fees to the current purchase balance. For each balance, we add up all the daily balances and divide by the number of days in the billing cycle. This gives us the Average Daily Balance for that balance. To calculate the total interest for each balance, we then multiply the Average Daily Balance by its Daily Periodic Rate and the number of days in the billing cycle. The daily periodic rate equals the APR divided by 365 (366 if a leap year). You authorize us to round interest charges to the nearest cent. We may use mathematical formulas that produce equivalent results to calculate the Average Daily Balance, interest charges and related amounts.
Interest Charge Calculation. Interest charge on purchases and interest charge on cash or check advances are calculated separately. We use a method called “average daily balance (including new purchases)” as follows:
Interest Charge Calculation. Interest is calculated on a daily basis at the end of every day, basis the current outstanding balance of the customer. The interest is computed separately for different plans (e.g. retail transaction, cash advance, etc.) For cash advances, the interest is levied from the date of the transaction, however, for retail transactions interest becomes due only when the customer does not pay off his her full beginning balance by the Payment Due Date. Under the following criterion, the customer does not incur interest: • Beginning balance on the Statement Date is zero. • Beginning balance on the Statement Date is not zero but the Cardmember pays off 100% of his full beginning balance by the Payment Due Date. if not paid by the due date, interest is also levied on the outstanding Membership Fees, NSF Fees, Interest, Service Tax, Over Limit and Late Payment Fees. Example of Interest Charge calculation: If only part of outstanding amount is paid by the payment due date If the beginning balance as on the Statement Date i.e. say 2nd of a month is Rs. 10,000 and only Rs 700 is paid by the payment due date, the interest calculation will be as illustrated below : Date Transcation Amount 02-Jan-2013 Statement Date Total Amount Due 10000 Minimum Amount Due-500 10-Jan-2013 Hotel Transaction 4000 15-Jan-2013 Mobile Xxxx Payment 2000 22-Jan-2013 Payment Credit 500 02-Feb-2013 Statement Date Total Amount Due 15300 Minimum Amount Due-765 Interest on the amount due will be charged as below: Daily Interest = Outstanding amount *(3.5%*12 months)/ 365 Transation Amount Period Number of Days Interest Amount 4000 10-Jan-2013 to 02-Feb-2013 24 110.46 2000 15-Jan-2013 to 02-Feb-2013 19 43.73 10000 (Last month outstanding) 03-Jan-2013 to 21-Jan-2013 19 218.63 9300 (Remaining Balance after adjusting payment of 500) 22-Jan-2013 to 02-Feb-2013 12 131.18 Thus the total interest charged would be: Rs 504.00 As the Cardmember has not paid the previous month’s outstanding balance in full so all future transactions will bear interest from the day of transaction. Service tax will be levied at the applicable rate on the interest amount.
Interest Charge Calculation. Interest is calculated on a daily basis at the end of every day, basis the current outstanding balance of the customer. The interest is computed separately for different plans (e.g. retail transaction, cash advance, etc.) For cash advances, the interest is levied from the date of the transaction, however, for retail transactions interest becomes due only when the customer does not pay off his/her full beginning balance by the Payment Due Date. Under the following criterion, the customer does not incur interest: • Beginning balance on the Statement Date is zero. • Beginning balance on the Statement Date is not zero but the Cardmember pays off 100% of his full beginning balance by the Payment Due Date. If not paid by the due date, interest is also levied on the outstanding Membership Fees, NSF Fees, Interest, Service Tax, Over Limit and Late Payment Fees. If the beginning balance as on the Statement Date i.e. say 2nd of a month is Rs. 10,000 and only Rs 700 is paid by the payment due date, the daily interest charge on this account will be Rs.501.23 02-Jan-09 Statement Date Total Amount Due 10000 Minimum Amount Due - 700 10-Jan-09 Hotel Transaction 4000 15-Jan-09 Mobile Xxxx Payment 2000 22-Jan-10 Payment Credit 700 02-Feb-09 Statement Date Total Amount Due 10000 Minimum Amount Due - 700 Interest on the amount due will be charged as below: Daily Interest = Outstanding amount *(3.5%*12 months)/ 365 Interest Calculation: 4000 10-Jan-2009 to 02-Feb-2009 24 110.46 2000 15-Jan-2009 to 02-Feb-2009 19 43.73 10000 (Last month outstanding) 03-Jan-2009 to 21-Jan-2009 19 218.63 9300 (Remaining 22-Jan-2009 to 02-Feb-2009 12 128.41 Balance after adjusting payment of 700) Thus the total interest charged would be: Rs 501.23 As the Cardmember has not paid the previous month's outstanding balance in full so all future transactions will bear interest from the day of transaction. Service tax will be levied at the applicable rate on the interest amount.
