late payment fee credit cardsDelaying credit card payments is a bad thing. Not only does it affect your credit history and score, but it can also burn a bigger hole in your pocket too. HDFC Bank, the country’s biggest credit card issuer with over 1.2 crore cards, has announced revised late payment charges from April 1. The charges, paid based on the amount of statement balance, have become costlier by 7% to 27%.

Late payment charges are applicable if the ‘Minimum Amount Due’ is not paid by the payment due date. Clear funds need to be credited to HDFC Bank Card account on or before the payment due date, to avoid Late Payment charges.

For any statement balance of less than Rs 100, there is no late payment fee. This is pretty standard across card issuers.

For statement balance between Rs 100 to Rs 500, the late payment fee has been kept unchanged at Rs 100. For those with a small amount of total dues on the card, late payment fee can be 20-100% of the due amount.

For statement balance between Rs 501 to Rs 5000, the late payment fee will go up from Rs 400 to Rs 500, a 25% rise.

If you have a statement balance of Rs 5,001 to Rs 10,000 and did not pay within due date, pay Rs 600 from April 1 compared to existing Rs 500. This marks a 20% increase.

For people with a statement balance of Rs 10,001 to 25,000, the late payment fee has been hiked by 7% from Rs 700 to Rs 800.

Those with statement balance of above Rs 25,000, late payment fee has been hiked the steepest i.e. 27%. They will pay Rs 950 compared to the existing fee of Rs 750.

Do note these charges are excluding HDFC Bank Infinia cards.

Take a look at the existing and proposed late payment fee charges for HDFC Bank credit cards below.

Late payment charges (basic credit card bill amount)
Statement balance (Rs) Late payment charges till March 31, 2019 Late payment charges from April 1, 2019 Increase %
Less than 100 Nil Nil
100 to 500 100 100 0
501 to 5000 400 500 25
5001 to 10000 500 600 20
10001 to 25000 750 800 7
More than 25000 750 950 27
Excluding Infinia cards

HDFC Bank has a six-tier late payment fee slab compared to competitors like ICICI Bank who have four. For example, ICICI Bank credit cards charge no late payment fee for a total amount due of less than Rs 100, Rs 100 late payment fee for dues in Rs 100-500 range, Rs 500 late payment fee for dues in Rs 501-10,000 range and Rs 750 late payment fee for dues more than Rs 10,000. Do note there are no late payment charges on ICICI Bank Emeralde Credit Card. Of course, these fees/charges are subject to change if there is an announcement in the future.

However, SBI Card, one of the biggest credit card issuers in India, follows a 6-tier slab like HDFC Bank. There are no late payment fees for a total due amount of up to Rs 200 on SBI credit cards. In total, SBI levies late payment fees ranging from Rs 100 to Rs 950.

Citibank credit cards’ late payment charges are applicable if the minimum amount due on the card is unpaid for more than 3 days (grace days) from the payment due date. Citibank credit card levies no late payment charge for statement balance up to Rs 1,000. It imposes late payment fee of Rs 450 for statement balance above Rs 1,000 and up to Rs 5,000; late payment fee of Rs 700 for statement balance above Rs 5,000 and up to Rs 10,000; late payment fee of Rs 950 for statement balance above Rs 10,000, as per the card member terms & conditions document on its website.

Author
Kumar Shankar Roy

Kumar Shankar Roy is contributing editor with RupeeIQ. He can be contacted on contact@rupeeiq.com