Minimum Amount Due in HDFC Credit Card

If you are using an HDFC credit card, you may be fully aware of the various monthly fees and charges associated with it. If you take a look at your monthly credit card bill, you would see in details about the different charges that you need to pay. One such monthly charge is the Minimum Amount Due (MAD).

This is actually the minimum amount that you need to pay towards your credit card account in order to avoid the late payment fee. However, unlike paying the total amount due, if you pay only the minimum amount due, you would still be charged an interest on the balance outstanding amount. If you use an HDFC credit card, here’s everything that you need to know about the minimum amount due that you need to pay towards it every month.

Difference Between Total Amount Due and Minimum Amount Due on HDFC Credit Card

The difference between the total amount due and the minimum amount due is simple to understand. While the total amount due is equal to your total expenditures on the card in any particular billing cycle, the minimum amount due is just a small percentage of the total amount spent.

If you opt to pay the total amount due on your card, you don’t need to pay any extra amount. On the other hand, paying the minimum amount due or any amount more than the minimum amount due but less than the total amount due would imply that you would be charged an interest on the balance amount.

How to Calculate HDFC Credit Card Minimum Amount Due

The minimum amount due on your HDFC credit card is 5% of the total outstanding amount on the card or Rs.200, whichever is higher. Also, if there are any EMIs or unpaid dues from the previous statements, those will be added to your current outstanding and hence your minimum amount due also increases. You would be able to see it on your monthly credit card statement.

What Happens When I Pay Only the Minimum Amount Due on My HDFC Credit Card?

As already explained, paying the minimum amount due is just ensuring that you don’t need to pay any late payment charges. However, you would still have to pay interest on the balance amount. On paying the minimum amount due, the balance outstanding would be carried to your subsequent statements. Do bear in mind that the minimum amount due or any payment higher than that should be made on or before the payment due date which is also mentioned on your credit card statement.

Any payment that you make towards your credit card account would be first considered as a payment towards the minimum amount due. Once the minimum amount is paid, only then any further payment would be adjusted against other charges.

Also, on paying only the minimum amount due, you wouldn’t be able to enjoy the interest-free period that you normally do on making a purchase with your credit card. The interest amount would be charged from the date of purchase itself.

If you plan to pay your credit card bill only on its due date, be careful about the mode of payment that you choose. This is because some payment modes take a few days to process and reflect your payment. For example, for local cheques used to pay credit card balance, the amount would be credited to your card account only in 3 working days. So you would have to deposit the cheque at least 3 days before the due date.

What Happens When I Don't Pay the Minimum Amount Due on My HDFC Credit Card?

If you fail to pay even the minimum amount due on your HDFC credit card, you will be charged a late payment fee that would be added to your next statement. The late payment charge depends on the total outstanding on the card.

Also, if you continue to default on payments, you will be sent reminders by the bank from time to time to settle the payment. It may also appoint a third party to get the payment from you. If you don’t make the payment even after all of these, the bank may suspend the facility on your credit card. Any reward points that you have accrued on your card may also be suspended by the bank.

The bank may also inform CIBIL about the non-payment of your credit card debt and hence your CIBIL score would drop.

HDFC Credit Card Late Payment Charges for Non-payment of Minimum Amount Due

FAQs on HDFC Credit Card Minimum Amount Due

1. What are the ways to pay the minimum amount due on my HDFC credit card?

   You can pay the minimum amount due on your HDFC credit card through HDFC credit card net banking, mobile banking apps or even HDFC mobile banking. Along with this, you can pay through fund transfer, over-the-counter payment, cheque or through the Auto-debit option.

   Non-HDFC Bank customers can opt for NEFT, Visa Money Transfer, or Non-HDFC net banking.

2. Is paying the total amount outstanding always better than paying only the minimum amount due?

   Always try to pay the total amount due on your credit card. If that’s not possible, pay the closest amount that you can. That’s because the interest on the balance amount keeps growing at the fast rate of 2% to 3.5% per month (revolving credit). So eventually, you may end up paying a large sum of money only as interest charges.

   Also, your credit score may take a hit if you continue paying only the minimum amount due on your credit card. Doing it once in a while is fine, but you shouldn’t fail regularly in paying the total amount due on our credit card.

3. How much more do I end up paying if I continue to pay only the minimum amount due on my HDFC credit card?

   The final amount depends on several factors like the total outstanding amount and the duration for which you only pay the minimum amount due.

4. Does the minimum amount due also include the loan that I have on my HDFC Bank credit card?

   If you have any existing loan on your credit card, the minimum amount due would include the EMI on that loan. This would be repeated until the entire loan amount along with the interest is repaid to the bank.

5. Is the minimum amount due calculated in the same way for all HDFC Bank credit cards?

   Yes, the process of calculating the minimum amount due is same for all HDFC credit cards.