Annual Percentage Rate (APR) for Credit Cards

How is it Calculated?

Our credit card APR is calculated using three parts: a monthly fee of 0.5%, + NBK’s interest margin of 2.5% + the Central Bank of Kuwait (CBK) Discount Rate.

Monthly fee (0.5%): this is a fixed monthly charge applied to any unpaid balance for using the credit card. 

NBK interest margin (2.5%): this is the bank’s standard interest amount added for providing credit. 

Central Bank of Kuwait (CBK) Discount Rate: this is a benchmark rate set by the Central Bank of Kuwait, which is currently 3.5%, and may change over time.

When is it Charged?

These three parts together make up the total interest charged on any unpaid credit card balance. Interest applies only if you do not pay your full balance by the due date and is calculated monthly.

Example: (for demonstrative purposes)

• Monthly spends for the month: KD 1,000
• Payment due (8.33%): 1,000 x 8.33% = KD 83.3
• Unpaid outstanding balance: 1,000 – 83.3 = KD 916.7
• Annual Percentage Rate is 12% divided by 12 months of the year is 1% a month
• KD 916.7 x 1% = KD 9.16 interest for the month