While Donald Trump has promised Americans relief with a 10% credit card interest rate cap, Capitalmind founder Deepak Shenoy had a sharp reality check for Indians to share.
Reacting to a tweet slamming U.S. rates above 25% as “usurious,” Shenoy shared a post on India’s towering rates, where the country’s largest issuer, HDFC, charges up to a jaw-dropping 45% annually — and that’s before adding an 18% GST.
Even HDFC’s top-tier “premium” cards, such as Infinia and Diners Black, don’t offer much of a break, carrying a hefty 23.88% annual rate.
One user, reacting to Shenoy’s tweet, suggested that U.S. rates are generally “lower than ours.” Shenoy was quick to draw a stark comparison, noting that while American mortgage rates average around 6.7%, Indian mortgages carry a steeper burden at 8.5%.
His advice for handling credit cards came down to a blunt assessment: “If you don’t know, don’t use it. Only if you guarantee to pay back in full every month without failing or needing other loans should you even consider using a credit card.”
Trump’s rate cap isn’t just a standalone proposal; it’s part of a larger vision he’s outlined to reduce American debt and ease financial strain. He has paired it with support for Senator J.D. Vance’s Credit Card Competition Act, which aims to eliminate swipe fees, typically adding 2-4% to every purchase and further deepening the debt load for U.S. consumers.
Trump has called it a “Visa-Mastercard monopoly” that traps Americans in debt with hidden taxes. Rallying supporters, Trump vowed, “Let’s get people out of debt, eliminate hidden taxes, and make America wealthy again.”
For Americans, Trump’s proposed cap could mean a drastic reduction in credit costs, reshaping the landscape for millions burdened by high rates. Shenoy’s post, however, casts a sobering light on the global divide in debt costs: in India, where rates soar up to 45%, the idea of a 10% cap isn’t even in the realm of possibility.