Late Payment Fee

A Late Payment Fee is a penalty charged by the credit card issuer when you fail to pay at least the minimum amount due by the payment due date.

It is a flat fee that varies by card type and the amount of your outstanding balance, and it is added to your next bill. Beyond the fee, a late payment also triggers interest charges and can negatively impact your credit score. What is a Late Payment Fee? If you do not pay at least the minimum due amount by the due date, the bank levies a late payment fee. For instance, if your total outstanding is ₹10,000 and you miss the payment, you may be charged a late fee ranging from ₹250 to ₹1,000 depending on the card category and whether it is your first or repeated default. The late fee for premium cards like HDFC Regalia or ICICI Emerald can go up to ₹1,200. The late payment fee structure in India is typically graded based on the outstanding amount. For example: outstanding up to ₹500 — ₹250 fee; ₹501 to ₹5,000 — ₹500 fee; ₹5,001 to ₹20,000 — ₹750 fee; above ₹20,000 — ₹1,200 fee. These slabs vary by bank and card type, and GST is applicable on all fees. Beyond the direct fee, the consequences of a late payment are severe. The bank charges interest on the outstanding balance at the card's prevailing rate from the transaction date itself (not from the due date), and this interest compounds monthly. If you have been paying your bills in full on time and then miss one payment, the interest-free grace period is revoked retroactively for that billing cycle and ongoing. From a credit score perspective, a single late payment can reduce your score by 50 to 100 points depending on your existing score and credit history. Multiple late payments signal financial irresponsibility to credit bureaus and can make it difficult to get approved for future credit cards, personal loans, or even mobile phone connections. To avoid late payment fees, set up auto-debit (NACH or SI) for at least the minimum amount due on your payment due date. This ensures you never miss a payment even if you forget. You can also set reminders on your phone 3 days before the due date. If you anticipate payment difficulty, contact your bank's credit card customer service before the due date — some banks offer a one-time waiver for first-time late payers, especially if you have a good repayment history.