how to calculate interest on bank credit limit
suppose 100000 credit limit as on 1st may clossing is 1000 rs bank how to calculate inteerest on credit limit accounts
veeru sagar
(BBE,M.com,CA Final )
(468 Points)
Replied 05 June 2013
hello miss vindiya
calculatation of interest on bank credit limit are not calculalated on the closing or opening balance of limit but its depend on the use of your limit as more and full strength of your limit used by you bank will charge you interest on the weighted average method.
in your example ..how much amount you have utilised during the period on the such basis bank will charge the interest amount not on the closing balance which you have given the 1000 in your case
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