Example 1 (Month 1):Assuming that the Cardholder is assigned the statement billing date as 7th day of every month and he does the following transactions in the billing period 7th March and 7th April.
- Retail purchases worth SAR 10,000 on March 10th
- Cash withdrawal of SAR 6,000 on 1st April
It is assumed that no previous balance is carried forward from the March 7th statement, the Cardholder will receive his April 7th statement detailing total transactions of SAR 16,075 (principal balance + cash advance fee of SAR 75 for every cash withdrawal).
The Cardholder needs to make a payment towards the outstanding within 23 days from the statement date (due date: April 30th). The payment can range between 5% and 100% of the outstanding amount.
Total interest charges for cash advance billed in the statement of April 7th will be SAR 6,075 x 35.88% x 7 days / 360 days* = SAR 42.38
* Interest on cash advance transactions is calculated on a daily basis since date of transaction until cash advance transaction amount is fully settled.
Example 2 (Month 2):In the following month starting April 7th, Cardholder will have the carry forward balance of SAR 16,117.3. In case a partial payment of SAR 3,000 is received on April 29th, interest charges for the May 7th statement will be calculated as per the following:
- Retail transaction since date of transaction (Mar 10th) until date of payment (April 29th): SAR 10,000 x 35.88% x 50 days / 360 days** = SAR 498.3
- Retail transaction since date of payment (April 29th) until statement issuance date (May 7th): SAR 10,000 x 35.88% x 9 days / 360 days** = SAR 89.7
- Cash balance since last statement issuance date (April 7th) until date of payment (April 29th): SAR 6,117.3 x 35.88% x 21 days / 360 days = SAR 128.04
- Cash balance since date of payment (April 29th) until statement issuance date (May 7th): SAR 3,117.3 x 35.88% x 9 days / 360 days = SAR 27.96
Total interest charges billed in the statement of May 7th will be SAR 744.03
**Interest on retail transactions is calculated on a daily basis since date of transaction, if the outstanding balance is not fully settled by the payment due date.
Example 3 (Month 3):Starting May 7th, Cardholder will have the carry forward balance of SAR 13,861.42. In case the customer does following transactions during this month:
- Partial payment of SAR 3,500 on May 10th
- Retail transaction of SAR 3,000 on May 16th
- Cash withdrawal transaction of SAR 600 on May 18th
Interest charges will be calculated as per the following:
- Retail balance since last statement issuance date (May 7th) until date of payment (May 10th): SAR 10,588.03 x 35.88% x 2 days / 360 days = SAR 21.11
- Retail balance since date of payment (May 10th) until statement issuance date (June 7th): SAR 10,000 x 35.88% x 29 days / 360 days = SAR 289.03
- Cash balance since last statement issuance date (May 7th) until date of payment (May 10th): SAR 3,273.38 x 35.88% x 2 days / 360 days = SAR 6.52
- Cash balance since date of payment (May 10th) until statement issuance date (June 7th): SAR 361.42 x 35.88% x 29 days / 360 days = SAR 10.45
- New cash advance since date of transaction (May 18th) until statement issuance date (June 7th) * : SAR 675 x 35.88% x 21 days / 360 = SAR 14.13
Total interest charges billed in the 7th of June statement will be SAR 341.24
Examples are Excusive of Value Added Tax 15%
KSA
