What is the minimum payment required for credit cards?
Credit cards have become a popular payment option in India, offering convenience and flexibility to make purchases and payments. However, it is essential to understand the minimum payment requirement on credit cards to avoid getting into debt traps. In this article, we will discuss the minimum payment requirement on credit cards in India and what it means for your finances. What is the minimum payment on credit cards? The minimum payment on a credit card in India is the minimum amount that a cardholder need to pay to the card issuer each month. It is usually a small percentage of the outstanding balance on the card, typically around 5% of the outstanding balance. For example, if you have a credit card balance of Rs. 10,000 your minimum payment may be Rs. 500. Why is minimum payment important? The minimum payment is crucial because it is the minimum amount that you need to pay to avoid late fees and penalty charges. If you fail to pay the minimum amount, you will incur a late fe...