Minimum Amount Due (MAD) Policy for Credit Cards

In line with the best customer practices, Standard Chartered Bank has introduced a company-wide change in the Minimum Amount Due payable by all Standard Chartered credit cardholders. This has been done in order to further improve our global services and help our cardholders better manage the repayment of their outstanding balances.

Please note that under the revised Minimum Amount Due (MAD) calculation, effective from 15th March' 2010, the Minimum Amount Due will be calculated as follows:

  • If your current balance is less than PKR 500, you will have to pay the balance in full.
  • In case the current balance amount is more than PKR 500, the Minimum Amount Due will be equivalent to PKR 500 or 1% of your principal balance amount, whichever is higher.
  • In addition to the above stated amount, the following fees and charges (all or those applicable) will also be a part of the minimum payment amount:
    • Financial Charges
    • Late payment fee
    • Cheque return fee
    • Any amount payable over and above the credit limit of the credit card
    • Amount of the unpaid / outstanding minimum payment amount due in the previous month(s) date
    • Fixed monthly installment (if you are subscribed to an installment plan)

Your Important Questions Answered

What is Standard Chartered Bank's (SCB) new Minimum Amount Due policy?

The Minimum Amount Due Policy has been implemented to ensure that our products and services are offered to you as per the best global practices in the cards industry. The new policy has been structured to facilitate you in better managing the outstanding balance on your credit card even if you choose to pay the Minimum Amount Due on a monthly basis.

As per the new policy, the MAD payment will be equivalent to 1% of your principal balance plus all fees and charges (Financial Charges, Late Payment Fee etc) OR PKR 500, whichever is higher. Please note that this policy is applicable on all Standard Chartered Credit Cards.

Why has this new MAD policy been introduced?

Standard Chartered Bank incorporates best practices from across the cards industry. Therefore, our credit card products and our services are devised in such a way that they cater to your best interests. The revised Minimum Amount Due policy is designed to help you mange your balances more effectively even if you choose to pay the Minimum Amount Due on a monthly basis.

When will this change occur?

This change will be effective from the 15th of March 2010.

How does this new Minimum Amount Due (MAD) policy work and how does it impact me?

Below are different scenarios illustrating the revised Minimum Amount Due (MAD) payment mechanisms for your reference and better understanding:

Example 1 - if customer always makes full payment
Suppose Mr. Ahmad Hasan has outstanding dues of PKR 60,000 on his Standard Chartered Credit Card. Mr. Ahmad always pays the outstanding dues in full before the due date and is not levied with any Financial Charges or any Late Payment Fee. Following is Mr. Ahmad's Minimum Amount Due in light of the revised policy:

Minimum Amount Due: 1% of PKR 60,000 = PKR 600

Example 2 - if 1% of the customer's principal balance is less than PKR 500
Suppose Mr. Shahan Durrani has outstanding dues of PKR 40,000 on his Standard Chartered Credit Card. Mr. Shahan also pays the outstanding dues in full before the due date. Now, let's examine Mr. Shahan's Minimum Amount Due payment:

Since PKR 400 (1% of PKR 40,000) is lower than PKR 500, the Minimum Amount Due payment will be PKR 500.

Example 3 - if customer is charged Financial Charges
Suppose Mr. Khizer Ayub has outstanding dues of PKR 40,000 on his Standard Chartered Credit Card. He is charged with PKR 1,000 in Financial Charges on his outstanding dues. Now, let's examine Mr. Khizer's Minimum Amount Due payment:

PKR 400 (1% of PKR 40,000) + PKR 1,000 (100% of Financial Charges) = PKR 1,400

Example 4 - if customer is charged with Financial Charges and Late Payment Fee
Suppose Mr. Saqib Azeem has outstanding dues of PKR 50,000 on his Standard Chartered Credit Card. Mr. Saqib misses the payment of his outstanding balance and revolves for that month. He is therefore, levied with Financial Charges of PKR 1,625 and a Late Payment Fee of PKR 1,000 (as he had not made the previous month's payment on time). Now let's examine Mr. Saqib's Minimum Amount Due as per the new policy:

Minimum Amount Due: (1% * 50,000) + (1,625 + 1,000) = PKR 3,125

Will this change increase my minimum payment?

The revised Minimum Amount Due policy is equivalent to 1% of the principal balance. In addition, all fees and charges are here forth also a part of the minimum payment amount. Therefore, this change may in certain cases result in an increase in the minimum monthly payment. However, whether the Minimum Amount Due payment increases, decreases or stays the same is entirely dependent on your account activity and the timeframe within which you pay your outstanding dues.

How does this change impact me?

This revision in policy will impact you if you only pay the Minimum Amount Due each month. However, if you usually make full payments on your outstanding balances, or make payments higher than the Minimum Amount Due mentioned on your monthly statements, this revision will most likely not affect you.

What if I require more information about this new MAD policy?

If you require any information about the new MAD policy, please feel free to call our 24 Hour Phone Banking Service at 111-002-002.

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