If you are using a Citibank credit card but have some doubts or concerns regarding the minimum monthly amount due that you see in your monthly credit card statement, here’s all that you need to know. If you have a clear idea about how the minimum amount due is charged and how to handle it ideally, you would have an easy time managing your Citibank credit card.
What Is The Minimum Amount Due (Mad) On My Citibank Credit Card?
The minimum amount due is the least amount that you need to pay towards your Citibank credit card account to avoid late payment charges. The minimum amount due saves you from paying any late payment charges but you would still have to pay interest on the balance amount on your Citibank credit card.
Is there any difference between the total amount due and the minimum amount due on my Citibank credit card?
Yes, the minimum amount due is the least amount that you need to pay towards your credit card account to avoid the charges of late payment, whereas, the term ‘total amount due’ is the sum total of all the expenses on your credit card in a particular billing cycle. If you pay the total amount due on or before the due date, you wouldn’t have to pay any extra charge on the amount.
What’s The Process Of Calculating The Minimum Amount Due On My Citibank Credit Card?
The minimum amount due on your Citibank credit card will be the higher of the following, subject to a minimum of Rs.100
- The sum of all the instalments, the amount that has been utilized over the credit limit (if applicable), and 5% of the remaining outstanding amount.
- The sum of all the instalments, transaction fees for EMI facilities or loans linked to your Citibank credit card, interest and/or other bank charges (excluding insurance/ annual fee/ foreign currency mark-up), the amount that has been utilized over the credit limit (if applicable), and 1% of the remaining outstanding amount.
- Any unpaid minimum amount due from any previous statement would be added to the current minimum amount due.
- If the total outstanding amount is less than Rs.100, the minimum amount due would be the total amount due.
What happens when I pay only the minimum amount due on my Citibank credit card?
If you pay only the minimum amount due on your Citibank credit card, the following are the consequences:
- High interest: Paying only the minimum amount due on your credit card isn’t a very wise thing to do. Firstly, you would have to pay the interest rate (3.25% per month at present) on the balance outstanding. The remaining balance would be carried to your next billing cycle. Thus, you would eventually end up paying far more than the total outstanding amount on your Citibank credit card.
- No interest-free period: When you pay the total outstanding amount on your credit card, you get to enjoy the interest-free period of up to 50-55 days depending on the date of the spending. This is one of the most attractive features of a credit card. However, if you pay only the minimum amount due, you wouldn’t be able to enjoy this interest-free period and would be charged interest on all your purchases from the date of purchase itself.
- Longer loan repayment time: It’s obvious that if you keep paying only the minimum amount due which is just a small fraction of the entire outstanding amount, you would take a long time to repay the full loan amount. So in the longer run, this would turn out to be an unwanted financial burden for you.
What Are The Late Payment Charges On My Citibank Credit Card?
The late payment charges that you would have to pay if you fail to pay the minimum amount due on your card are as follows
| Less than Rs.10,001 |
Rs.300 |
| Between Rs.10,001 to Rs.25,000 |
Rs.600 |
| Above Rs.25,000 |
Rs.950 |
What happens if I do not pay the minimum amount due on my Citibank credit card?
The non-payment of the minimum amount due is seriously harmful to your credit account and your credit score. Apart from the late payment charges, it also harms you in multiple other ways.
For instance, if you do not pay the minimum amount due as per the last credit statement by its due date, the rate of interest can grow up to 3.5% per month. This rate would apply till your credit account is regularized plus 3 months post that.
Also, if the minimum amount due is not paid by the due date plus 3 days, your card will be reported as delinquent to CIBIL. Thus, your credit score would drop drastically. The bank may even suspend the services on your card if you fail to pay the minimum amount due. The bank would also report this to the Reserve Bank of India or any other concerned authority but if the payment is done, the record will be updated to ‘current’ in the next monthly refresh to the Credit Information Companies.
FAQs on Minimum Amount Due on Citibank
- How much more do I end up paying if I continue to pay only the minimum amount due on my Citibank credit card?
The exact amount will vary depending on the total outstanding amount and the tenure for which you pay only the minimum amount due. For example, let the total spends on your Citibank credit card in a particular billing cycle Rs.1 lakh, at 35% p.a., you would take 31 months to pay it off and incur interest of Rs.52,276.35. Therefore, it is suggested that you pay an amount which is as close to the total outstanding as possible.
- Â When should I pay the minimum amount due on my Citibank credit card?
If you wish to pay only the minimum amount due on your Citibank credit card, the due date is same as the total outstanding payment. So, you need to pay the minimum amount due on or before the payment due date of your Citibank credit card.
- When will the late payment charge be levied on my Citibank credit card account?
The late payment charges shall be levied on your credit card account if the minimum amount due isn’t paid for over 3 days from the due date of the payment.
- How would the bank contact me if I don’t pay the minimum amount due on my    Citibank credit card?
If you don’t pay the minimum amount due, the bank would contact you through visits, fax, posts, e-mail, phone, or SMS messaging. It may also engage a third party to remind you about the payment, follow up, and collect the dues. You may also be contacted by the customer assistance specialists of the bank.
- What if the bank is unable to contact me if I don’t pay the minimum amount due on my Citibank credit card?
If the bank is unable to contact you, it may leave a message with third parties like your spouse, parent, any other direct family member, or your secretary.
- How do I contact the bank if I have any queries regarding the minimum amount due on my Citibank credit card?
You can contact the customer care centre of the bank at 1860 210 2484.
- What are the ways to pay the minimum amount due on my Citibank credit card?
You can use online modes of payment like NEFT, Citibank Mobile App, Citibank website, or Citibank Interactive Voice Response (IVR). For online payment through non-Citibank banking account, you may use the Epay option on Citibank website. Offline methods include a standing instruction to deduct the minimum amount due from your Citibank account, cash, cheque, demand draft, etc.
- Is the process to calculate the minimum amount due same for all Citibank credit cards?
Yes, the process of calculating the minimum amount due is same for all Citibank credit cards.
