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Loan calculator Qatar › Credit card: what paying only the minimum costs (Qatar)

Estimate only — not financial advice. Only your lender's offer is binding.

Credit card: what paying only the minimum costs (Qatar)

Updated

Example: QAR 7,000 on a card at 12% a year — the highest QCB allows (1% a month) — with no new spending. We found no QCB rule setting a minimum payment: each card sets its own. If your card's minimum is 5% of the amount due with "at least QAR 100" (example terms — check your statement) and you pay only that, the card takes 4 years 5 months to clear and costs QAR 1,477 in interest. Paying the first minimum, QAR 353.50, every month instead clears it in 1 year 11 months for QAR 840. Without the "at least" amount, the same balance would take 28 years 7 months.

This page: a credit card balance you can't clear at once. What paying only the minimum really costs, and what changes if you pay a fixed amount or clear it by a date. The card rules are the Qatar Central Bank's (QCB), so they are the same at every bank in Qatar.
The statement balance you can't pay in full.
12% is the highest QCB allows (1% a month). Your card may charge less — your statement shows the rate, often as a monthly figure: multiply by 12.
Example — we found no QCB minimum; check your statement. 5% is only an example.
Example — we found no QCB minimum; check your statement. QAR 100 is only an example.
Compare with paying more
For example your first minimum, kept the same instead of shrinking.
Only to show the highest card limit QCB allows against it: 2× your net total salary.
Paying only the minimum, the card is clear after4 years 5 months

Minimum only, year by year

    Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.

    Why the minimum is a trap

    The minimum is a share of what you owe. As the balance shrinks, so does the minimum, so each month you pay a little less and the debt drags on. Early on, much of each payment is interest. In the example, a 5% minimum with no "at least" amount would stretch QAR 7,000 over 28 years 7 months and cost QAR 1,728 in interest. With a fixed amount every month instead — even just your first minimum, kept the same — the balance falls faster and the interest drops with it.

    What QCB's credit card rules say

    • Interest cap (cards issued against salary): card interest may be at most 1% a month (12% a year). On overdue amounts a bank may add at most 0.25% a month more.
    • Late fee: QCB's fee table lists at most QAR 50 per delay, but excepts cards issued against salary — for those QCB's 2011 rule allows no fee besides interest. Banks may not charge fees outside the table without QCB approval.
    • Card limit: a card issued against your salary may have a limit of at most 2× your net total salary.
    • Salary transfer: loans and cards against salary are given only with your salary transferred to the bank (or against a lien on cash deposits) — so renewing the card needs the salary transfer too.
    • No official minimum payment. We found no QCB rule setting the minimum you must pay each month; it is in your card's terms and on your statement. The calculator uses the figures you enter.

    Your card counts against your salary

    QCB's salary limits count all your monthly debt payments, card payments included: at most 75% of basic salary plus social allowance for a Qatari citizen, at most 50% of total salary for a non-Qatari resident. A card you keep paying slowly leaves less room for a loan: see how much can I borrow?. To move a large balance into fixed instalments, compare with the personal loan calculator.

    The 2× cap counts every card limit, used or not. To see how much limit your salary and obligations still leave room for, use the credit card limit calculator.

    The calculator assumes no new spending and the same rate throughout, in monthly steps; your bank works on daily balances, so its figure can differ by a few riyals.

    Questions people ask

    What is the minimum payment on a credit card in Qatar?

    We found no official minimum: QCB's rules do not set one. Your card's terms and statement show your minimum (a share of the amount due, often with an 'at least' amount).

    Is there a cap on credit card interest in Qatar?

    Yes, for cards issued against salary (the usual case — they need your salary transferred). QCB caps their interest at 1% a month (12% a year), plus at most 0.25% a month extra on overdue amounts.

    How much is the late fee on a credit card in Qatar?

    QCB's fee table lists at most QAR 50 per delay, except for cards issued against salary, where QCB's 2011 rule allows no fee besides interest.

    How high can my card limit be?

    In Qatar, a card issued against salary may have a limit of at most 2 times your net total salary, and needs your salary transferred to the bank.

    Do credit cards affect how much I can borrow?

    Yes — QCB's salary limits count all monthly debt payments, cards included: at most 75% of basic salary plus social allowance for Qataris, 50% of total salary for residents.