What is the minimum payment I need to make on my credit card?

The minimum payment is the lowest amount you must pay against your credit card bill by the payment due date. It is usually calculated as a percentage of your total outstanding bill amount, typically between 5-10%.

For example, if your total credit card bill is ₹50,000 and the minimum due is 5%, you need to pay ₹2,500 by the due date. In addition to a percentage of the outstanding amount, the minimum payment will also include any EMI conversions or instalment plans you have opted for on previous purchases.

The minimum payment ensures your credit card account remains active and is not reported as defaulted. However, this only covers a small portion of your actual dues. Paying just the minimum can lead to the accumulation of debt and higher interest costs in the long run. The unpaid amount is carried forward, and you are charged high interest annually.

Ideally, you should try to pay the entire bill or at least a major portion of your total credit limit. This will help avoid interest charges and also lower your credit utilisation, which will benefit your credit score.