Minimum Due

Minimum Due

The minimum due (or Minimum Amount Due — MAD) is the smallest payment you must make by your due date to keep your account in good standing. In India, it’s typically 5% of your outstanding balance or ₹200, whichever is higher.

How It’s Calculated

If your statement shows an outstanding balance of ₹80,000, your minimum due would be:

• 5% of ₹80,000 = ₹4,000
• Since ₹4,000 > ₹200, your minimum due is ₹4,000

The Minimum Due Trap

Paying only the minimum keeps your CIBIL score safe from a “missed payment” mark and avoids late fees. But here’s what it doesn’t do: it doesn’t stop interest charges.

The remaining ₹76,000 starts accumulating interest at 3–4% per month. Worse, most Indian banks apply interest from the transaction date, not the statement date — meaning you lose the interest-free period entirely on all transactions.

Real example: You owe ₹1,00,000. You pay the ₹5,000 minimum. At 3.5% monthly interest, the ₹95,000 balance generates ₹3,325 in interest in just one month. By the end of the year, you could owe more than your original balance even while making minimum payments.

What You Should Do Instead

Always pay the full statement balance by the due date. If you genuinely can’t, pay as much as you can — every rupee above the minimum reduces your interest burden.

Warning: If you’re only paying the minimum due every month, you’re likely in a debt spiral. Consider a balance transfer or personal loan to pay off the card at a lower interest rate.