Credit card minimum due payment

[Max_spayne]

My CC bill is 5L, minimum due 25k. I've paid the 25k. Now I want to know what happens if I pay the remaining amount, few days after the due date. Will they start charging late fee+gst? Or is there something like an interest free grace period? I have scoured the internet and youtube as much as I could but to no avail.

 

[hitirfan]

Interset will start after due date. For better explanation refer MITC of your card, they might have shown a table there to show how it works.

 

[Aakash singh]

Absolutely you will be charged for the remaining amount which is described on the bank website of which the credit card is, I don’t think that there is a interest free period after the due date because I’m also using the hdfc bank credit card on minimum due payment I got charged for the remaining amount.

 

[abhimarda]

My CC bill is 5L, minimum due 25k. I've paid the 25k. Now I want to know what happens if I pay the remaining amount, few days after the due date. Will they start charging late fee+gst? Or is there something like an interest free grace period? I have scoured the internet and youtube as much as I could but to no avail.

They will start charging interest from the day of spend for which you were otherwise getting some time to pay. So in this rather high amount of bill you will get hefty amount of interest charges

 

[RitamModak]

If you've paid the minimum due (₹25K) and plan to pay the remaining credit card bill (₹4.75L) after the due date, here's what will happen:

1. Interest Charges: Interest will start accruing right from the date of purchase/payment and not from due date. For example, if purchase of Rs.5lakhs was made on 10th Nov and bill generated on 15th Nov with due date of 1st Dec. If payment of 25k was made on 26th Nov, then interest on 5 lakhs will be charged till 26th Nov and post that interest will be charged on 4.75lakhs. All purchases post due date will not have any grace period and will carry interest.(Correction By @abhimarda )


2. Late Payment Fee: Since you've already paid the minimum due, most banks won't charge a late fee. However, if the remaining amount is unpaid for a longer duration, late fees may apply.


3. Grace Period: The grace period applies only if you clear the total outstanding amount by the due date. Since you haven't, there won't be any interest-free grace period for the unpaid balance.


4. GST on Fees: Any late fee or interest charged will attract GST, increasing the total payable.


5. New Purchases: New transactions will not have a grace period and will attract interest from the day of purchase until the full outstanding balance is cleared.Most Banks Follow This.



Pro Tip: Pay off the ₹4.75L as soon as possible to avoid escalating interest charges. For specific rates and conditions, refer to your credit card agreement or
contact your bank.

 

[abhimarda]

1. Interest Charges: Interest will start accruing on the remaining balance (₹4.75L) from the due date until it's fully paid. The rate varies by bank, so check your card's terms.

This is not correct. Interest will start accruing right from the date of purchase/payment and not from due date. For example, if purchase of Rs.5lakhs was made on 10th Nov and bill generated on 15th Nov with due date of 1st Dec. If payment of 25k was made on 26th Nov, then interest on 5 lakhs will be charged till 26th Nov and post that interest will be charged on 4.75lakhs. All purchases post due date will not have any grace period and will carry interest

 

[Max_spayne]

Thank you all for sharing such valuable information. Awesome community. Thanks again guys

 

[zammy]

My CC bill is 5L, minimum due 25k. I've paid the 25k. Now I want to know what happens if I pay the remaining amount, few days after the due date. Will they start charging late fee+gst? Or is there something like an interest free grace period? I have scoured the internet and youtube as much as I could but to no avail.

Hi I am Zameer Ahmed, I'll be answering your questions

1. Late Fee + GST

If you pay only the minimum due and not the full balance by the due date, most credit card companies will charge a late payment fee.

The late fee amount is typically based on the total outstanding balance (in your case, ₹5L), and GST is charged on top of this fee.

This late fee may still apply even if you clear the full amount a few days after the due date, as the fee is triggered once the due date passes.

2. Interest on the Remaining Amount

Credit card issuers usually do not provide a grace period once the minimum due has been paid but the full balance remains unpaid.

They will charge interest on the unpaid balance (₹4.75L in your case) from the date of each transaction until the day you clear the full amount.

The interest rate is typically high (e.g., 24%-42% annually, depending on your card issuer).

3. No Interest-Free Grace Period

The interest-free grace period only applies if you pay the entire balance in full by the due date.
If the full payment is not made, the grace period is lost, and interest will accrue from the transaction date.

4. Impact of Paying the Full Amount After the Due Date

If you pay the remaining amount in full a few days after the due date:

Late fee + GST: Likely to be applied.

Interest on ₹4.75L: Charged for the period between the transaction date and the date of full repayment. Once the full amount is paid, no further interest will be charged, but the late fee remains.

5. Steps to Confirm

Review your credit card terms and conditions for specifics on late payment fees and interest rates.

Contact your bank’s customer service to understand their policy regarding late fees and interest accrual.

Note: To avoid extra charges, it's best to pay the remaining balance as soon as possible.