'How to calculate the Minimum Due amount of your Credit Card'
Below are the general scenarios that Banks calculating the Minimum Due amount of Credit Cards based on the status of the same.
Scenario 01 Card account status is not in Overdue and the outstanding balance is within the credit limit Credit limit = 500,000.00 Card retail outstanding as per the last statement = 325,000.00 Minimum Due Percentage = 3% Minimum Due Amount = 325.000.00 x 3% = 9,750.00 Note : Card retail outstanding is consist only the purchases, cash advances, fees and charges. Outstanding balances of Installment Accounts are not considered when calculating the retail outstanding for Minimum Due calculation.
Scenario 02
Card account status is not in Overdue and the outstanding balance is over the credit limit
Credit limit = 500,000.00
Card retail outstanding as per the last statement = 505,000.00
Minimum Due Percentage = 3%
Minimum Due Amount =
((Card limit x Minimum Due Percentage ) + Over the limit Amount)
((500,000.00 x 3%) + (505,000.00 - 500,000.00)) = 20,000.00
Note : When the retail outstanding balance has exceeded the credit limit, it is considered as over the limit. The over the limit amount is always on demand and should be settled immediately by the card holder.
Scenario 03
Card account status is in Overdue and the outstanding balance is within the credit limit
Credit limit = 500,000.00
Card retail outstanding as per the last statement = 350,000.00 (including the overdue amount)
Overdue amount = 25,000.00
Minimum Due Percentage = 3%
Minimum Due Amount =
((Retail Outstanding - Overdue amount) x Minimum Due Percentage + Overdue amount) = ((350,000.00 – 25,000.00) x 3% + 25000.00) = 34,750.00
Note : When the card holder has missed to pay the minimum due of the latest credit card statement on or before the due date, the card status will categorize as ‘Overdue’. There are several overdue statuses based on number of overdue days.
Scenario 04
Card account status is in Overdue and the outstanding balance also over the limit of the credit limit
Credit limit = 500,000.00
Card retail outstanding as per the last statement = 560,000.00 (including the overdue amount)
Overdue amount = 150,000.00
Minimum Due Percentage = 3%
Minimum Due Amount =
((Retail Outstanding – (Overdue amount + Over the limit amount) x Minimum Due Percentage + (Overdue amount + Over the limit amount))
(560,000.00 – (150,000.00 + 60,000.00)) x 3% + (150,000.00+60,000.00) = 220,500.00
Note : The over the limit and overdue amounts are always on demand and should be settled immediately by the card holder.