ICICI Bank credit card changes: Minimum due, lounge access explained

New MAD formula may raise monthly minimum payouts; lounge access now linked to Rs 75,000 quarterly spend

Private sector lender ICICI Bank has announced changes to the way the minimum amount due (MAD) is calculated on several of its credit cards. The revised formula will apply to statements generated from March 2026 onwards, depending on the card variant. 

For cardholders who typically pay only the minimum due, this change could materially increase the amount payable each month.

 

What has changed in MAD calculation?

 

Until now, MAD was largely linked to a small percentage of the outstanding balance along with interest and charges. Under the revised framework, the calculation will explicitly factor in:

 

• Goods and services tax (GST)
• EMI principal and EMI interest
• Fees and other charges
• Overlimit amount, if any
• Unpaid MAD from the previous statement
• A minimum of 5 per cent of retail spends, cash advances and finance charges

 

In simple terms, the bank will compare 5 per cent of the total spends (including finance charges) with the finance charge component. Whichever is higher will influence the minimum payable.

 

 

If finance charges are high due to delayed payments or cash withdrawals, the MAD could rise sharply because 100 per cent of the finance charge may be added to the minimum due.

 

How it affects your wallet?

 

For revolvers — customers who do not clear the full outstanding — this revision can mean:

 

Higher upfront cash outgo each month

Lower risk of balances snowballing over time

Faster repayment of EMI-linked spends

 

For example, in an illustration shared by the bank, the MAD rose above Rs 20,000 on a Rs 1 lakh retail spend when finance charges were high. That is significantly more than the traditional 5 per cent norm many card users are accustomed to.

 

The practical implication is clear- paying only the minimum due will become more expensive in the short term, though it may reduce long-term interest accumulation.

 

Lounge access spend threshold revised

Separately, the bank has also revised complimentary airport lounge access conditions on select cards. From July 1, 2026, customers will need to spend RS 75,000 in the preceding quarter to qualify for lounge access in the following quarter.

 

What should cardholders do?

• Avoid cash advances which attract immediate finance charges.
• Clear the total amount due wherever possible.
• Track EMI commitments closely, as they now directly affect MAD.

 

The revision signals a tighter approach towards revolving credit. For disciplined users who pay in full, there is no impact. For those relying on minimum payments, monthly outflows may rise noticeably from the next financial year.