MAD — Minimum Amount Due
Short answer
Minimum Amount Due (MAD) is the smallest payment — usually about 5% of your bill — that avoids a late fee. It does not avoid interest: pay only MAD and finance charges apply to your entire outstanding balance, and new purchases lose their interest-free period too.
What it means
The MAD line exists to keep your account current, not to help you manage debt. It is the smallest amount the bank will accept without marking the payment late.
The common mistake
Believing "minimum due" means "the amount I owe this month". It does not. The amount you owe is the Total Amount Due; the minimum is the amount that keeps the relationship polite.
The second mistake is setting autopay to the minimum. It feels safe and is quietly expensive — see how to pay ₹0 in charges.
When paying only the minimum is the right call
One month, in a genuine emergency, when the alternative is a missed payment. A missed payment can be reported to the bureaus and hurts your credit score; paying the minimum avoids that. Then clear the balance as fast as you can, and stop using the card until it reaches ₹0.
Related
All figures on this page are indicative and dated. Rates and fees differ by bank and change over time. Always verify with your bank's official schedule of charges.
Frequently asked questions
Is paying the minimum amount due bad?
It protects you from a late fee and a missed-payment report, so it is better than paying nothing. But it leaves the whole balance accruing interest at 36–48% a year, so it should be an emergency measure for one month, never a routine.
What is included in the minimum amount due?
Typically a small percentage of the outstanding balance (commonly 5%), plus the full amount of any EMIs, fees, taxes and any amount over your credit limit. The exact formula is in your card's terms.
Sources
The regulation and official pages this page is checked against. If one of them disagrees with us, it wins.
- Master Direction — Credit Card and Debit Card (Issuance and Conduct) Directions, 2022 — Reserve Bank of India
- FAQs on the Credit Card and Debit Card Master Direction — Reserve Bank of India
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Written and checked by the CardSamajh editorial desk · Last reviewed: · How we check this