Investor and Capital Minds founder Deepak Shenoy has highlighted that in India bank's credit card interest charges, even excluding GST, far exceed charges in the United States, amid Donald Trump's promise to cap the credit card interest rates for “a period of time”.
In a post on the social media platform X (formerly known as Twitter), Shenoy reposted a video of Trump promising a cap on credit card interest rates, stating: "They're pissed at 25%. Meanwhile at India's largest card issuer: Remember, EXCLUDING 18% GST." (sic)
GST is goods and service tax. The prevalent rate of GST on credit card interest charges is 18 per cent.
The image shared by Shenoy highlighted charges by "India's largest card issuer"; he did not identify the bank or the data source.
The image showed information about “finance charges for both revolving credit and cash advances” on a monthly and annual basis, excluding GST. The monthly charges were 1.99 per cent and 3.7 per cent, and the annual charges were 23.88 per cent and 45 per cent — excluding the 18 per cent GST.
When a follower asked advice on whether to use credit cards or not, citing encouragement from finfluencers, Shenoy gave a simple response: “If you don't know, don't use it. Only if you guaranteed to pay back in full every month without forgetting and not asking for other loans should you use a credit card.”
A user on X, shared a video of Trump speaking to an audience in Georgia, stating: “The Visa/MC credit card monopoly has put Americans into excessive debt with usurious interest rates at 25%+”
“President Trump wants a 10% cap on all credit card interest rates. JD Vance co-sponsored the Credit Card Competition act which fights the 2-4% hidden tax you pay every time you swipe. Common sense is back. Let’s get people out of debt, eliminate hidden taxes, and make america wealthy again,” they added. (sic)
In the video, Trump can be heard saying that he would cap credit card interest rates “for a period of time”.
“We're going to put a temporary cap on credit card interest rates at 10 per cent. We have no choice, they're getting 22-25 per cent. We can't let people have to pay 25-22 per cent interest because they cannot afford to pay off their credit card. We're gonna cap it for a period of time at 10 per cent,” he stated.
He added that this would help control inflation and also promised to redirect government spending towards “real infrastructure, not fake”.
