The Minimum Amount Due (MAD) is the smallest portion of the total outstanding balance that a credit cardholder must pay on or before the due date. It helps avoid late payment penalties but does not prevent interest charges on the remaining balance. PNB generally sets the minimum amount due as a fixed percentage of the total outstanding balance. It is usually 5% of the total due amount, but it may vary based on the card type and terms. If there are EMIs or previous unpaid balances, those amounts may be included in the MAD.
On PNB credit cards, the minimum amount due (MAD) is usually either 5% of the total outstanding balance or a specific amount (whichever is higher).
MAD = Discount on purchase (usually 5% of the total amount due) + EMI amount (In case of EMI conversions)
The MAD also includes any past dues or over-limit charges.
However, I shall still be charged interest on the remaining amount even though, by paying just the MAD, the late payment charges are avoided.
Example:
M.A<5% Charge for the Amount Due: ₹1,000 * Total Balance: ₹20,000 MAD = ₹1,000 + ₹2,000 = ₹3,000 in case EMI is ₹2,000.