Credit interest capitalized in HDFC refers to the process of adding accrued interest to the principal balance of a credit account, which increases the overall amount owed and the interest charges that accrue on the account. When it comes to credit interest capitalized in HDFC, it typically refers to the interest earned on a savings or fixed deposit account. The interest earned on these accounts is added to the principal amount at regular intervals, such as quarterly or annually, and then earns interest on the new, increased balance. Interest is calculated on a daily basis as a simple interest and charged only on the amount drawn and the period for which it is utilized.