Calculation of Minimum Amount Due for Credit Cards
We have made changes to the minimum repayment amount required on Credit Cards. Under the new methodology for calculating the minimum amount due, the minimum amount due will include:
- Fees and charges.
- Interest in full (to avoid charging interest on interest).
- Over-limit amount (if any).
- Instalment (if an installment loan has been set up on the Card).
Please note that this new minimum amount due computation came to effect on 1st June 2012.
An illustration of how the minimum amount due will be calculated is given below:
If your current balance is less than KES 1,000, you will need to pay the balance in full.
In case the current balance amount is more than or equal to KES 1,000, the minimum amount due will be equivalent to KES 1,000 or 1% of your principal balance amount of your statement balance, whichever is higher plus fees and charges (if applicable) as mentioned below.
- In addition to the above stated amount, the following fees and charges (all or those as applicable) will also be a part of the minimum payment amount:
- Instalment (if an instalment loan has been set up on the Card)
- Joining fee
- Annual fee
- Supplementary annual fee
- Interest charges
- Late payment fee
- Over-limit fee
- Credit life insurance premium
- Any amount used over and above the Credit limit of the Credit Card
- Amount of the unpaid / outstanding minimum payment amount due in the previous month(s)
- Fixed monthly instalment (if you are subscribed to an instalment plan)