Loans & credit
Minimum amount due
Also known as: Minimum due, MAD
Quick answer
The smallest amount you must pay on a credit card bill to avoid a late fee; a dangerous trap.
The minimum due is the issuer-calculated amount printed on your statement. There is no universal 5% formula; RBI requires issuers to set it high enough to prevent unpaid interest and charges from creating negative amortisation.
But it does not stop interest. The unpaid balance keeps compounding at credit card rates, and new purchases lose the interest-free period.
Treating the minimum due as your actual bill is one of the fastest ways to fall into a debt spiral.
For example
If your ₹50,000 statement shows a ₹3,100 minimum, paying ₹3,100 may avoid overdue status — but the unpaid ₹46,900 still attracts finance charges. Use your statement's number, not a rule of thumb.