Interest calculation shown in it are wrong. Usually credit card companies charge interest @ 3.50% per month. you have applies per month interest rate to per annum and hence the cost of interest is drastically down which actually is not the case
Ankit Berlia commented
Yes instead of Rs 86 for Rs 10000 for 3 months. One would have to actually pay
Rs 350*3=Rs. 1050 + the additional cost of late payment which would be around Rs. 500.
So one will have to pay 1050+ 500*2(default payment for two mnths)=Rs. 2050
Depending on the amount they charge for defaulting