Changes in Minimum Amount Due (MAD) computation logic
The Minimum Amount Due (MAD) computation methodology will be revised with effect from 10th November
2023 across Axis Bank Credit Cards.
Existing MAD computation logic:
MAD = 5% of (Purchases/ Cash Withdrawals) + 100% of (Interest/Finance Charge, All Fees, loans, taxes)
Revised MAD computation logic (effective 10th Nov 2023):
MAD = 2% of (Purchases/ Cash Withdrawals) + 100% of (Interest/Finance Charge, All Fees, loans, taxes)
Illustration for Minimum Amount Due (MAD) Computation:
Assume that you have paid all previous dues in full, and do not have any amount outstanding in your Credit Card
Account, and your monthly statement is generated on the 15th of every month.
Earlier MAD computation logic:
MAD = 5% of (Purchases/ Cash Withdrawals) + 100% of (Interest/Finance Charge, All Fees, loans, taxes)
Revised MAD computation logic (effective 10th Nov 2023):
MAD = 2% of (Purchases/ Cash Withdrawals) + 100% of (Interest/Finance Charge, All Fees, loans, taxes)
Illustration for Minimum Amount Due (MAD) Computation:
Assume that you have paid all previous dues in full, and do not have any amount outstanding in your Credit Card
Account, and your monthly statement is generated on the 15th of every month.
Previous MAD computation logic Revised MAD computation logic
Sr. No. Txn Date Type Cr/ Db MAD Contribution Amount MAD Contribution Amount
a 25th Sep Purchase Db 5% 5000 2% 5000
b 1st Oct Joining Fee Db 100% 1000 100% 1000
c 1st Oct Cash Withdrawal Db 5% 2000 2% 2000
d 1st Oct Cash Withdrawal Fee Db 100% 100 100% 100
e 1st Oct GST Db 100% 18 100% 18
Interest on Cash
f 15th Oct Db 100% 35.5 100% 35.5
Withdrawal
g 15th Oct GST on Interest Db 100% 6.4 100% 6.4
Total Due 8159.89 8159.89
Minimum Amount Due (MAD) 1509.90 1299.90
Basis previous logic, the minimum Amount Due (MAD) will be calculated as below:
MAD = 5% of Purchase and Cash Withdrawal + 100% of Joining Fees, Cash Withdrawal Fee, Interest on cash
withdrawal, GST & GST on Interest
MAD = 5%*(5000+2000) + 100%*(1000+100+18+35.5+6.4) = 1509.90
Minimum Amount Due will be Rs. 1509.90
The revised Minimum Amount Due (MAD) with effect from 10 th November will be calculated as below:
MAD = 2% of Purchase and Cash Withdrawal + 100% of Joining Fees, Cash Withdrawal Fee, Interest on cash
withdrawal, GST & GST on Interest
MAD = 2%*(5000+2000) + 100%*(1000+100+18+35.5+6.4) = 1299.90
Minimum Amount Due will be Rs. 1299.90.
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If you spend ₹5,000 and pay back exactly the Minimum Amount Due (subject to a minimum payment of ₹100)
every month, it will take you up to ~7 years to pay back the total amount. We therefore suggest that whenever
your cash flows allow, pay back the entire outstanding or an amount substantially more than your Minimum
Amount Due.
Please read the above changes in conjunction with the detailed MITC:
https://www.axisbank.com/docs/default-source/default-document-library/mitc-credit-cards.pdf.
Please refer to the “Use of Credit Card” section and “Termination / Surrender / Revocation of Card
Membership” for terms related to usage of your Axis Bank Credit Cards.
Terms and Conditions – EMI/Loan Foreclosure
With effect from 10th November 2023, if a Loan facility/Loan is foreclosed by the Cardholder during the Loan
facility/Loan tenure, the Cardholder shall be liable to repay Total Outstanding due (including the principal
outstanding, foreclosure charge and the interest on the loan for the actual number of days till closure) from the
last billing date till the date of closure of Loan Facility/Loan, to the Bank. In such a scenario, the following shall be
the entries in the card statement for the interest charge:
· A = Interest shall be debited for the entire remaining loan tenure (i.e., last billing date till the date of closure of
Facility tenure)
· B = Interest pertaining to period post loan foreclosure (i.e., foreclosure date to the date of closure of Facility
tenure) shall be credited on the card account.
Effectively, the net interest i.e., (A-B) shall be billed to the customer for the number of days since last billing date
to loan foreclosure date.
Illustration: Assume that you have paid all previous dues in full, and do not have any amount outstanding in your
Credit Card Account, and your monthly statement is generated on 25th of every month. You have taken Balance on
EMI (BoE) of INR 5,000 for the tenure of 6 months on 3rd May’23 with ROI 14%. 2 EMIs are deducted till Jul’23
and you have requested for foreclosure on 17th Jul’23.
Date Transaction Type Amount (Rs.) Explanation
3rd May’23 Availed BOE (Balance on EMI) Rs.5,000 Availed BOE (Balance On EMI) on credit card
2nd Jun’23 1st EMI Amount Rs.867.69 Dr Deducted EMI of amount Rs. 867.69 (Principal = Rs.
809.36, Interest = Rs. 58.33)
2nd Jun’23 GST on Interest Rs 10.50 Dr GST @18% on interest 58.33*18% = Rs. 10.50
2nd Jul’23 2nd EMI amount Rs.867.69 Dr Deducted EMI of amount Rs. 867.69 (Principal = Rs.
818.80, Interest = Rs. 48.89)
2nd Jul’23 GST on Interest Rs. 8.80 Dr GST @18% on interest 48.89*18% = Rs. 8.80
17th Jul’23 Foreclosure of BOE Rs.159.08 Dr Foreclosure request on 17th Jul’23. Debit of interest of
remaining tenure (3rd Jul’23 to 2nd Nov’23)
Interest Debit for EMIs # 3 to
6 3371.84*14%*123 Days/365 days=159.08
(Rs. 3371.84 is the principal outstanding balance)
17th Jul’23 GST on above interest Rs. 28.63 Dr 159.08*18% = Rs. 28.63
17th Jul’23 Instalment Interest Reversal Rs.140.97 Cr Reversal of interest of unutilized period (17th Jul’23 to 2nd
Nov’23)
3371.84*14%*109 days/365 days= Rs. 140.97
(Rs. 3371.84 is the principal outstanding balance)
th
17 Jul’23 GST reversal Rs.25.37 Cr 140.97*18%= Rs. 25.37
Effective Net Interest Rs. 18.11 Interest (Last billing date to the date of closure of Loan)
Effective Net GST Rs.3.26 GST on above effective net interest
Above changes shall be applicable across Instant Loan on Credit Card, Balance on EMI, Convert purchases into
EMIs (Conversion of Transaction into EMI or Merchant EMI) across all Axis Bank Credit Cards. All other charges
with regards to loan foreclosure shall remain as per the existing terms and conditions.
Please refer to the following detailed terms and conditions for all loan/EMI products including Instant Loan on
Credit Card, Balance on EMI, Convert purchases into EMIs (Conversion of Transaction into EMI or Merchant EMI):
https://www.axisbank.com/retail/cards/credit-card/useful-links/card-services
Please read the above T&C in conjunction with the detailed MITC:
https://www.axisbank.com/docs/default-source/default-document-library/mitc-credit-cards.pdf
