No, Amazon Pay Later itself doesn’t charge daily late fees. However, its lending partners, axio and IDFC FIRST Bank, do impose late fees if your payment isn’t received by the due date (typically the 5th of the month).
Amazon Pay Later Late Fee Structure
A. Late Fee Calculation
Both lenders levy a percentage of the outstanding due amount as a late fee, but the specifics differ:
1. IDFC FIRST Bank: Brace yourself for a 3% penalty on the unpaid amount, along with an 18% GST charge on top of the late fee itself. This fee gets levied on the 11th of the month, even though the due date is the 5th.
2. Axio: The late fee depends on the outstanding amount:
|
Monthly Due Amount (INR) |
Late Payment Fee (INR) |
|---|---|
|
Less than or equal to ₹200 |
No Fee |
|
Over ₹200 but less than or equal to ₹1,000 |
₹125 |
|
Over ₹1,000 but less than or equal to ₹5,000 |
₹250 |
|
Over ₹5,000 but less than or equal to ₹20,000 |
₹425 |
|
Over ₹20,000 |
₹600 |
B. Late Fee Application
The late fee isn’t applied daily. It’s a one-time charge levied by the lender if your payment isn’t received by a specific date (around the 7th or 11th of the month, depending on the lender).
Strategies to Avoid Late Fees
Ways to steer clear of these potential pitfalls:
- Auto-Pay: Set up auto-pay to ensure your dues are automatically deducted from your linked bank account on the due date. This eliminates the risk of forgetting a payment.
- Stay Funded: Maintain sufficient funds in your linked bank account around the due date to avoid failed auto-pay attempts.
- Manual Payments: If auto-pay fails, make a manual payment immediately upon notification to avoid late fees.
Consequences of Late Payments
Missing a payment on Amazon Pay Later goes beyond just the late fee. Here’s what’s at stake:
- Credit Score Hit: Late payments can significantly damage your credit score, making it harder to qualify for loans and other forms of credit in the future.
- Account Suspension: Consistent late payments can lead to Amazon Pay Later suspending your account, restricting your ability to use this payment option.
- Potential Legal Action: In extreme cases, persistent late payments could escalate to legal action.
For More Information
- Refer to the Key Fact Statement (KFS) you received before your transaction or the Sanction Letter for details on the exact late fee charges applicable to your loan.
- Visit the Amazon Pay Later Help Center for more information on repayments and managing your account.
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Conclusion
While Amazon Pay Later doesn’t charge daily late fees, missing a due date can result in significant charges depending on your outstanding balance and lending partner. Make sure you understand the late fee structure and take steps to avoid them by paying on time.