Minimum Monthly Payment

"Minimum Monthly Payment" submitted by SchoolGrantsfor Editorial Team and last updated on Friday 22nd July 2011

Minimum Loan Payment
The lowest amount of monthly payment on a loan that will enable the borrower to pay the entire loan by the designated repayment period. The amount of your minimum loan payments depends on the total loan amount, interest rate, and the length of the repayment period. Monthly payment amount is rounded to the nearest dollar. Total interest and amount repaid are calculated from the pre-rounded monthly payment.

Minimum Payment for credit card
The minimum amount a cardholder can pay to keep the account from going into default. Most card issuers require a minimum payment of 2 percent of the outstanding balance.