Late payment fee is charged when dues are paid after the due date.
Detailed Explanation
Late payment fee is a penalty charged when loan EMIs or credit card bills are not paid by the specified due date. This fee increases the overall cost of borrowing and may negatively impact the borrower’s credit score. Repeated late payments can lead to higher interest rates and stricter loan terms.
Example
"If your credit card bill of ₹20,000 is due on 10th and you pay it on 15th, the bank may charge a late payment fee along with interest on the outstanding amount."