Minimum Amount Due: Why Paying It Is a Trap

What it actually is

The minimum due is usually a small percentage of your outstanding balance (commonly around 5%, plus any EMI installments, fees, and overdue amounts) — not a fifth or a tenth of what you owe in any meaningful sense once interest is added back in.

Why it's expensive

Once you pay less than the full statement balance, the interest-free grace period is gone entirely — not just on the unpaid portion, but retroactively on new purchases too, from the transaction date. Credit card interest rates in India commonly run in the high-30s to mid-40s% annualized, so a balance paid down only at the minimum can take years to clear and cost multiples of the original amount in interest.

Treat the minimum due as a floor that avoids a missed-payment mark on your credit report, never as a real repayment plan. If you can't pay the full statement, converting the balance to a structured EMI at a lower disclosed rate is usually far cheaper than revolving at the standard interest rate.