Credit cards are financial tools providing support to their users. These credit cards are basically debt instruments providing you with loans in case you need some money. This money debt given to you by the bank comes with a grace period. The grace period is a period where you can repay the debt without being charged interest on the outstanding amount.
Grace Period – This is a period allotted by the bank on your first EMI with which the bank does not charge you anything on the outstanding amount. For example suppose the bank has allotted you 45 days of interest-free period or grace period, which means even if you make a purchase on April 1st, 2023, you can still repay it till May 15th, 2023. Since your grace period is of 45 days, you will not be charged anything apart from the due balance.
This grace period is different for every bank and so with different credit cards. This grace period is your interest-free period. There is at least one time when every credit cardholder delays their payment and this is when the bank makes money by charging interest rates on the outstanding amount.
Interest rates vary from one bank to another and so as the grace period or interest-free period. Even if two credit cards are issued from one bank but the grace period can still differ.
Every bank has different financial charges, when talking about ICICI Bank finance charges, the interest rates can go anywhere from 1.25% to 3.50% per month. These finance charges or interest rates depend on many factors such as credit score, credit history, purchase history, repayment patterns, etc.
Interest charges are also applied when you withdraw any cash. And these interest charges can also differ depending on which ATM you used to make the transaction. If you are using ICICI ATM for withdrawal, then the charges might be less compared to the other bank ATMs.