Indian Credit Card Interest Rates Unfair

Credit Card users in India have something to cheer about; the National Consumer Disputes Redressal Commission has ruled that banks charging interest rates in excess of 30% per annum is an unfair trade practice.

Most banks in India charge between 35%-40% depending on your credit history and the offer you have signed up for. In developed countries like the US the rate of interest is 12%-15% . This is mainly because of the high default rates in countries like India and risk factors associated with it. In developed countries consumers are rewarded with cheaper interest rates for prompt payments which are also not followed by banks in India.

Consumers in India have always had to pay what the banks demand, this new ruling looks like a step in the right direction finally.

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