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Credit Health · हिन्दी

Minimum amount due

The minimum amount due is the smallest payment a bank will accept by your due date without treating the bill as unpaid or reporting it as a missed payment. It is typically a small percentage of your total outstanding balance, often around 5%. Paying only the minimum amount due avoids a late payment mark on your credit report, but it does not avoid interest, finance charges continue to accrue on your full outstanding balance until it is paid off completely.

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Credit Health
Minimum amount due
What this actually costs you
₹
If you pay only the minimum (~5%) instead of in full
Amount paid now₹2,500
Remaining balance still accruing interest₹47,500
Finance charge this month alone (~3.5%)₹1,663
Frequently asked questions
It protects you from a missed-payment mark, but it does not protect you from interest charges, and carrying a high balance can still affect your credit utilisation.
It is generally best treated as a last resort for a specific month, since credit card interest rates are typically much higher than most other forms of borrowing.