AU Bank Credit Card Interest Rate 2026

AU Bank offers various types of credit cards to cater to the diverse needs of its customers. The interest rate on an AU bank credit card usually ranges between 1.99% to 3.75% each month. The exact rates of interest, however, depend on the type of card, usage and patterns of repayment.

If the credit cardholder fails to clear the outstanding balance on time, banks charge a specific interest. AU Small Finance Bank also provides an interest-free credit period of up to 48 days. Being aware of these details allows easy management of funds while avoiding high charges.

Continue reading this blog to learn more about the AU bank credit card interest rate.

An Overview of AU Bank Credit Card Interest Rate

Type of Credit Card	Interest Charges (Excluding GST)
Zenith	1.99% per month (23.88% annually)
All AU Retail Credit Cards Except Zenith	3.75% per month (45% per annum)

Terms and Conditions Associated with AU Bank Credit Card Interest Rate

Transaction and Service Charges

AU Small Finance Bank allows altering charges or fees from time to time with the consent of the customer. For a detailed overview, visit the official bank website and navigate to ‘Schedule of Charges' for the complete fees and charges structure applied to your credit card.

Interest Free Period

At AU Small Finance Bank, the interest free period usually ranges between 18 days to 48 days with respect to the scheme applied on your chosen credit card and claim submission from the merchant end. However, this period is not applicable if the previous month's balance is due or if the respective cardholder has withdrawn cash from ATMs.

Thus, the interest free period is only applicable if the cardholder completes payment of previous dues. There must be complete clearance of the previous month's payment.

Credit Limit

Considering the AU Bank’s internal criteria, the credit and cash withdrawal limits are determined. The limit for add-on cardholders is, however, similar to that of primary cardholders. Banks usually specify these limits to respective cardholders during card delivery or the issuance of monthly credit card statements. 

Applicability of AU Bank Credit Card Interest Rate

In order to understand the applicability of the AU Bank credit card interest rate, let's consider the following scenario for credit cardholder Mr. X:

Date of transaction – 3^rd December, 2025

Transaction amount - ₹11,000

Statement date – 8^th December, 2025

Minimum due amount (5%) - ₹550

Total due amount - ₹11,000

Actual due date – 28^th December, 2025

Applicable rate of interest – 42% p.a.

Case 1: The credit card holder has made a full payment and there will be no interest charged.

Case 2: Suppose the credit cardholder has completed payment partially before the due date. Following this, the credit card interest rate calculation will be:

• Payment completed - ₹5,500
• Date of payment completion – 25^th December
• Next statement date – 8^th January, 2026
• Other purchases completed between 8^th December and 8^th January – None

Total Interest = (Interest applicable on total amount from purchasing date till the date of partial payment) + (Interest applicable on the remaining amount from the date of partial payment till the date of next statement generation)

Interest calculation from date of purchase till date of partial payment (from 3^rd December to 25^th December) = [21*11,000*42%/365] = ₹265.8

Interest applicable for 15-day period on the remaining amount of ₹5,000 = [15*5500*42%/365] = ₹94.9

Thus, the total interest charged = ₹ (265.8+94.9) = ₹360.7

Case 3: If there is a withdrawal of cash from an ATM, both the cash withdrawal charges and the interest rate will be applied. Thus, considering this scenario,

• Withdrawn amount - ₹10,000
• Date of withdrawal – 2^nd December
• Payment date of withdrawn amount – 5^th December

Number of days eligible for interest = 4

Interest charged will be = [4*10000*42%/365] = ₹46.03

Factors Affecting AU Bank Credit Card Interest Rate

The AU bank credit card interest rate varies depending on several factors, such as the type of credit card, credit history, existing market conditions, etc. Let's explore the factors in detail below:

Credit Score: A high credit score causes low rates of interest, reflecting the creditworthiness of individual borrowers.

Market Conditions: Interest rates and overall market conditions play a significant role in determining credit card rates.

Patterns of Payment: Paying late or exceeding the desired credit limit might lead to charging of high penalty interest rates.

Introductory Offers: There are some credit cards in the AU bank offering low introductory rates for a specified time period.

Policies of Issuer: Each issuer of a credit card decides its own rate by assessing risks and business strategy.

💡For timely bill payments and tracking business transactions, use the PICE App.

Conclusion

The AU bank credit card interest rate structure is thoughtfully designed to align with the unique spending habits of individual cardholders.

By making payments on time, users can enjoy a wide range of benefits and rewards without incurring any additional interest charges. However, missing a payment can lead to significant costs due to high interest rates and late fees.

Using credit cards responsibly provides cashback, reward points and flexibility with manageable interest costs. Thus, being aware of interest rates allows individual cardholders to make wise decisions and avoid debt.

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