What is the minimum payment on credit cards in India?

In India, the minimum payment is typically 5% of outstanding balance or ₹200–₹500 floor, whichever is higher. At 30–46% APR, most of this goes toward interest rather than reducing your balance.

How long to pay off a credit card with minimum payments in India?

With 30–46% APR and minimum-only payments, it can take 10–20+ years to clear a credit card balance in India. You could end up paying 2–3x the original amount in total.

The Minimum Payment Trap in India: Why Paying Minimum Due Keeps You in Debt

Every credit card statement in India includes a "Minimum Amount Due." It feels manageable, but this number is designed to keep you paying for as long as possible. With APR rates of 30–46%, the math is not in your favour.

What Is the Minimum Due in India?

Typically 5% of outstanding balance or ₹200–₹500 floor, whichever is higher. Plus any overdue amounts, fees, and charges. Major issuers like HDFC Bank, SBI Card, ICICI Bank follow similar structures.

Why the Minimum Payment Is a Trap

At 30–46% APR, here's how your payment is applied: late fees and charges deducted first, interest charges deducted next, and whatever is left goes toward your actual principal. With India's APR rates, very little touches the principal.

The Real Cost of Minimum Payments

On a ₹50,000 balance at 38% APR paying only the minimum: after 2 years, your balance may have barely moved. It can take over 10 years to fully clear, with total interest exceeding 2x the original balance.

How to Break Free

Convert outstanding balance to EMI (many Indian banks offer this at lower rates than revolving credit)
Look into balance transfer offers — common across HDFC, ICICI, and Axis Bank
Be aware that 18% GST is added on top of interest charges, increasing your effective rate
Contact the RBI Banking Ombudsman if you face unfair practices
Pay more than the minimum due — at 40%+ APR, minimum payments barely touch the principal

Frequently Asked Questions

What is the minimum payment on credit cards in India?: Typically 5% of outstanding balance or ₹200–₹500 floor, whichever is higher. At 30–46% APR, most of this goes toward interest.
How long to pay off a credit card with minimum payments in India?: With 30–46% APR, it can take 10–20+ years. You could end up paying 2–3x the original amount.