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Federal BankCredit cards have become a need for lots of individuals as they give you financial stability and the power to make big purchases & pay later for them. But, having a credit card with a high-interest rate can sometimes become very costly, especially when you have a high outstanding balance to pay month on month. In such a case, it becomes really important to have low interest credit cards as you can save a lot of extra amounts you are paying in the form of interest. If you don’t know what a low interest credit card is, keep reading to know all about it and the top low interest credit cards available in the Indian market.
List of Best Low-Interest Credit Cards in India 2023
The interest rate of a credit card is one of the most important factors to be checked before you get a credit card. Different credit cards come with different interest rates, however, most of them have an average interest between 3% to 3.5% per month. But, there are some credit cards that come with lower interest rates and many of us want to have such a credit card. In this article, you can find the list of best low-interest credit cards along with their other fees & charges and benefits:
- IDFC First Wealth Credit Card
- Axis Bank Burgundy Private Credit Card
- IndusInd Bank Indulge Credit Card
- HDFC Bank INFINIA Credit Card Metal Edition
- HDFC Bank Diners Club Black Credit Card
- IDFC FIRST Select Credit Card
- Yes Private/Private Prime Credit Card
- Yes Bank First Exclusive Credit Card
- Standard Chartered Super Value Titanium Credit Card
- Standard Chartered DigiSmart Credit Card
- InterMiles HDFC Bank Diners Club Credit Card
- Kotak Privy League Signature Credit Card
- HSBC Premier Mastercard Credit Card
- IDFC FIRST Classic Credit Card
- IDFC FIRST Millennia Credit Card
- Axis Bank Pride Platinum Credit Card
- Axis Bank Pride Signature Credit Card
- IndusInd Bank Celesta Credit Card
- Indusind Bank Crest Credit Card
- Indusind Bank Pioneer Heritage Credit Card
Fee
Joining Fee
Nil
Renewal Fee
3 Reward Points on every Rs. 100 spent offline, 6 Reward Points on every Rs. 100 spent online, 10 Reward Points per Rs. 100 on spends above Rs. 30,000.
Best Suited For
Shopping
Reward Type
Reward Points
Welcome Benefits
Gift Vouchers worth Rs. 500 from premium brands on spending over Rs. 30,000 within 90 days and a 5% cashback on the first EMI transaction made within the first 30 days.
Card Details +
Annual Fee – Nil
Interest Rate – 0.75% to 2.99% per month (9% to 36% per annum)
Key Features:
- Welcome gift voucher worth Rs. 500.
- Up to 10 Reward Points on every spend of Rs. 100.
- Buy 1 Get 1 Free offer on movie tickets on BookMyShow.
- 4 complimentary international and domestic lounge visits per quarter.
Fee
Joining Fee
Rs. 50,000 (Nil for individuals holding a Burgundy Private account)
Renewal Fee
15 Edge Reward Points for every Rs. 200 spent.
Best Suited For
Movies
Reward Type
Reward Points
Welcome Benefits
30,000 edge Reward Points
Card Details +
Interest Rate – 1.5% per month (19.56% per annum)
Key Features:
- Welcome gift of 30,000 Edge Reward Points.
- No foreign currency markup fee.
- 15 Edge Reward Points on every Rs. 200 you spend.
- Unlimited access to complimentary domestic as well as international lounges.
Fee
Joining Fee
Rs. 2,00,000 (no annual fee applicable) or Rs. 1,00,000 (Rs. 10,000 annual fee applicable in this case)
Renewal Fee
1.5 Reward Points for every Rs. 100 spent using the card
Best Suited For
Travel
Reward Type
Reward Points
Welcome Benefits
Card Details +
Annual fee – Nil (with a joining fee of Rs. 2,00,000)
Rs. 10,000 (with a joining fee of Rs. 1,00,000)
Interest rate – 1.79% per month (21.48% per annum)
Key Features:
- 1.5 Reward Points on every spend of Rs. 100.
- Buy 1 Get 1 free (BOGO) offer on movie tickets through BookMyShow.
- 4 complimentary domestic and 2 international lounge access every quarter.
- 1 Reward Point = Re. 1 for redemption against cash credit.
Fee
Joining Fee
Rs. 12,500 + applicable taxes
Renewal Fee
5 Reward Points on every retail spend of Rs. 150, reward rate of up to 3.3%
Best Suited For
Travel
Reward Type
Reward Points
Welcome Benefits
Welcome bonus of 12,500 Reward Points and complimentary Club Marriott membership for the first year offering 20% discounts on dining and stay in the Asia-Pacific region.
Card Details +
Annual Fee – Rs. 10,000
Interest Rate – 1.99% per month (23.88% per annum)
Key Features:
- Welcome benefit of 10,000 Reward Points.
- 5 Reward Points per Rs. 150 spent.
- Unlimited complimentary domestic/international airport lounge visits.
- Exclusive dining benefits with the Good Trail Program.
Fee
Joining Fee
Rs. 10,000 (plus applicable taxes)
Renewal Fee
5 Reward Points on every spend of Rs. 150. 10x Reward Points on SmartBuy and 2x Reward Points on weekend dining
Best Suited For
Travel
Reward Type
Reward Points
Welcome Benefits
Get complimentary annual membership of Forbes, Club Marriott, Times Prime, MMT Black, Amazon Prime, and Swiggy One (3 Months) on spending Rs. 1,50,000 or more in the first 90 days of card issuance
Card Details +
Annual Fee – Rs. 10,000
Interest Rate – 1.99% per month (23.88% per annum)
Key Features:
- Complimentary membership of Amazon Prime, Times Prime & Zomato Gold as a welcome benefit.
- Up to 50 Reward Points on every Rs. 150 spent using the card.
- Unlimited complimentary domestic/international lounge visits.
- 6 complimentary golf rounds per quarter.
Fee
Joining Fee
Nil
Renewal Fee
3 Reward Points on each Rs. 125 spent offline, 6 Reward Points on each Rs. 125 spent online, and 10 Reward Points on every Rs. 125 on spends above Rs. 25,000.
Best Suited For
Travel
Reward Type
Reward Points
Welcome Benefits
Welcome gifts worth Rs. 500 in the form of vouchers based on spends within 90 days of card issuance and a 5% cashback on EMI transactions within 30 days of card issuance.
Card Details +
Annual Fee – Nil
Interest Rate – 0.75% to 2.99% (9% to 36% per annum)
Key Features:
- Up to 10 Reward Points per Rs. 100 you spend using the card.
- Welcome benefit of gift vouchers worth Rs. 500.
- 4 complimentary domestic lounge access per quarter.
- Lower foreign currency markup-fee of 1.5% only.
Fee
Joining Fee
Rs. 50,000 (plus applicable taxes) for Yes Private Credit Card, Rs. 20,000 (plus applicable taxes) for Yes Private Prime Credit Card
Renewal Fee
24 Reward Points for every Rs. 200 spent on international spends, 16 Reward Points for every Rs. 200 spent on domestic spends.
Best Suited For
Travel
Reward Type
Reward Points
Welcome Benefits
Upon successful first transaction made using this credit card, you will get up to 25,000 Reward Points.
Card Details +
Annual Fee – Rs. 10,000
Interest Rate – 1.2% per month (for individuals holding an account in YES Bank)
1.99% per month (for others)
Key Features:
- Welcome bonus of 25,000 Reward Points.
- Up to 3 Reward Points on every Rs. 100 you spend.
- Unlimited complimentary domestic lounge access.
- 12 complimentary golf rounds and 12 lessons every year.
Fee
Joining Fee
Rs. 999 + taxes
Renewal Fee
6 Reward Points for every Rs. 200 spent on Selected category, 12 Reward Points on every Rs. 200 spent on all other transactions and 1000 Reward Points on every YES PayNow registration.
Best Suited For
Travel
Reward Type
Reward Points
Welcome Benefits
N/A
Card Details +
Annual Fee – Rs. 9,999
Interest Rate – 1.99% per month
Key Features:
- Welcome benefit of 40,000 bonus Reward Points.
- Up to 12 Reward Points on every Rs. 200 you spend.
- Unlimited complimentary international lounge access and 3 complimentary domestic lounge access per quarter.
- Exciting discount on movie tickets on BookMyShow.
Fee
Joining Fee
Rs. 750 plus applicable taxes
Nil (for premium banking customers)
Renewal Fee
You get up to 5% cashback on fuel purchases, utility bills payments, telephone bills and 1 RP on every Rs 150 spent on other categories
Best Suited For
Fuel
Reward Type
Reward Points
Welcome Benefits
Up to 1,500 cashback on fuel transactions within the first three months.
Card Details +
Annual Fee – Rs. 750
Interest Rate – 1.99% per month
Key Features:
- Monthly cashback of 5% on selected categories, such as fuel, utility bill payments, etc.
- 1 Reward Point per Rs. 150 you spend.
- Complimentary access to several participating lounges worldwide.
- Spend-based annual fee waiver.
Fee
Joining Fee
Rs. 49
Renewal Fee
Up to 25% off on travel-related spends on partner brands and up to 20% off on shopping at partner brand.
Best Suited For
Movies
Reward Type
Reward Points
Welcome Benefits
Card Details +
Annual Fee – Nil
Interest Rate – 1.99% per month
Key Features:
- A discount of up to 20% on Myntra.
- Up to 10% discount on Grofers & Zomato.
- Buy 1 Get 1 free offer on movie tickets on INOX.
- Spend-based waiver of monthly membership fee.
Fee
Joining Fee
Rs. 5,000 (plus applicable taxes)
Renewal Fee
8 InterMiles for every Rs. 150 spent on retail transactions, 16 InterMiles for Rs. 150 spent towards flight/hotel bookings on intermiles.com
Best Suited For
Travel
Reward Type
Reward Points
Welcome Benefits
Get InterMiles Gold membership for the first year and up to 25,000 bonus InterMiles.
Card Details +
Annual Fee – Rs. 5,000
Interest Rate – 1.99% per month (23.88% per annum)
Key Features:
- Up to 16 Reward Points on every Rs. 150 you spend.
- Complimentary access to leading domestic and international lounge access.
- Up to 25,000 bonus Intermiles as a welcome benefit.
- Complimentary Dine Out Passport membership.
Fee
Joining Fee
Rs. 2,500 + GST (for paid variant), Nil for the free variant
Renewal Fee
5x Reward Points on select retail shopping and travel spends, 2x Reward Points on all other spends and traveler’s plan.
Best Suited For
Shopping
Reward Type
Reward Points
Welcome Benefits
Card Details +
Annual Fee – Rs. 2,500
Interest Rate – 2.49% per month
Key Features:
- An opportunity to choose between a shopper’s plan and traveler’s plan.
- Earn up to 5 RPs per Rs. 100 you spend.
- An opportunity to earn 6.400 bonus Reward Points every quarter.
- Complimentary Priority Pass membership.
Fee
Joining Fee
Nil
Renewal Fee
For every Rs. 100 spent using this credit card, you will get 2 Reward Points.
Best Suited For
Shopping
Reward Type
Reward Points
Welcome Benefits
One night stay at Taj Hotels along with Complimentary Epicure Membership.
Card Details +
Annual Fee – Nil
Interest Rate – 2.49% per month
Key Features:
- 2 Reward Points for Rs. 100 you spend using the card.
- Complimentary LoungeKey membership.
- Complimentary domestic and international lounge access.
- Low foreign currency markup fee.
Fee
Joining Fee
Nil
Renewal Fee
3 Reward Points on every offline spend of Rs. 150 & 6 Reward Points on every online spend of Rs. 150.
Best Suited For
Travel
Reward Type
Reward Points
Welcome Benefits
Get a welcome gift voucher worth Rs. 500 on spending Rs. 15,000 or more within the first 90 days. Also, get 5% cashback on the value of your first EMI transaction done inside 90 days of card generation.
Card Details +
Annual Fee – Nil
Interest Rate – 0.75 to 2.99% (9% to 36% per annum)
Key Features:
- Gift voucher (worth Rs. 500) as a welcome gift.
- Up to 10 Reward Points per Rs. 100.
- A discount of up to Rs. 100 each month on movies.
- 16 complimentary railway lounge access per quarter.
Fee
Joining Fee
Nil
Renewal Fee
3 Reward Points on each offline spend of Rs. 150, 6 RPs per online spend of Rs. 150, and 10 Rewards on every Rs. 150 on spends above Rs. 20,000.
Best Suited For
Shopping
Reward Type
Reward Points
Welcome Benefits
5% cashback on first EMI spend up to Rs. 1000 and additional welcome gift vouchers worth Rs. 500 on spending Rs. 15,000 inside 90 days of card generation
Card Details +
Annual Fee – Nil
Interest Rate – 0.75 to 2.99% (9% to 36% per annum)
Key Features:
- Up to 10 Reward Points per Rs. 100 spent.
- Reward points earned using this card never expire.
- 4 complimentary railway lounge access per quarter.
- Gift voucher (worth Rs. 500) as a welcome gift.
Fee
Joining Fee
Nil
Renewal Fee
4 Reward Points per Rs. 200 spend.
Best Suited For
Dining
Reward Type
Reward Points
Welcome Benefits
NA
Card Details +
Annual Fee – Rs. 250
Interest Rate – 2.95% (41.75% per annum)
Key Features:
- Personalized credit card with Indian Tricolor and 4th line dedicated to the Indian army, air force, or Navy.
- 4 Edge Reward Points on every rs. 200 spent using the card.
- A discount of up to 15% on dining.
- Spend-based annual fee waiver.
Fee
Joining Fee
Nil
Renewal Fee
For every Rs. 200 spent, you will get 8 EDGE REWARD Points.
Best Suited For
Travel
Reward Type
Reward Points
Welcome Benefits
N/A
Card Details +
Annual Fee – Rs. 500
Interest Rate – 2.95% (41.75% per annum)
Key Features:
- 8 Edge Reward Points on every Rs. 200 you spend.
- 2 complimentary domestic lounge visits (every quarter).
- Discount of 15% or more on dining at several premium restaurants.
- 1% fuel surcharge waiver up to Rs. 400 per month.
Fee
Joining Fee
Rs. 50,000
Renewal Fee
1 Reward Point for every Rs. 100 you spend on domestic purchases. 3 Reward Points for every Rs. 100 you spend on international purchases.
Best Suited For
Movies
Reward Type
Reward Points
Welcome Benefits
You get either of Oberoi hotels/resorts vouchers worth Rs. 50K or Montblanc vouchers worth Rs. 50,000.
Card Details +
Annual Fee – Rs. 5,000
Interest rate – 2.99% per month
Key Features:
- Welcome gift vouchers from Oberoi hotels and Montblanc worth Rs. 50,000.
- Up to 3 RPs on every Rs. 100 spent.
- Unlimited access to the domestic lounges.
- Buy 1 get 1 free (BOGO) offer on movie tickets and 20% off on movies on BookMyShow.
Fee
Joining Fee
Rs. 2,00,000 (nil annual fee in this case), Rs. 1,00,000 (Rs. 10,000 annual fee applicable in this case)
Renewal Fee
2.5 Reward Points per Rs. 100 you spend on international transactions and 1 Reward Point per 100 you spend on domestic transactions.
Best Suited For
Travel
Reward Type
Reward Points
Welcome Benefits
Card Details +
Annual Fee – Rs. 10,000 (joining fee of Rs. 1 lakh)
Nil (with a joining fee of Rs. 2 lakhs)
Interest Rate – 2.99% per month
Key Features:
- Up to 2.5 Reward Points for every Rs. 100 you spend with the card.
- 2 complimentary international and 2 domestic lounge access each quarter.
- Up to Rs. 3000 off on dining at several premium restaurants.
- Up to 3 complimentary movie tickets each month on BookMyShow.
Fee
Joining Fee
Rs 90,000 + GST
Renewal Fee
2.5 Reward Points for Rs 100 spent on international transactions and 1 Reward Points for Rs 100 spent on domestic transactions.
Best Suited For
Movies
Reward Type
Reward Points
Welcome Benefits
Oberoi e-gift voucher and a Luxe Gift card.
Card Details +
Annual Fee – Rs. 25,000
Interest Rate – 2.99% per month
Key Features:
- Welcome benefit of Oberoi gift vouchers and Luxe gift cards.
- 2.5 Reward Points per Rs. 100.
- 8 complimentary and domestic lounge access every year (unlimited with Pioneer heritage Metal Credit card variant).
- Up to 4 complimentary movie tickets every quarter on BookMyShow.
What Are Low-Interest Credit Cards?
Low-interest credit cards are credit cards that charge lower interest on the outstanding balance than other credit cards. Most of the credit cards generally have an interest rate of around 3% to 3.5% per month. But, some of the credit cards in the market charge interest of as low as 0.75% to 2% per month. These cards can be great tools for people who carry a balance month to month on their credit cards. Although it is always best to pay the full amount due before the due date, low-interest credit cards are the best choice in case you are not able to do so.
Advantages And Disadvantages Of A Low-Interest Rate Credit Card
Since nothing comes without advantages and disadvantages, the same is the case with low-interest credit cards as well. Following are the advantages of low-interest rate credit cards –
- Lower Interest Rate – The first and foremost advantage of these credit cards is that they come with a low-interest rate. The interest rate on these credit cards is quite low as compared to regular credit cards.
- Low Annual Fee – Another advantage of having these credit cards is that the credit card companies charge a low annual fee on these cards which is quite high in the case of general credit cards. Additionally, the annual fee on your credit card gets waived off if you spend a particular predefined amount using your credit card.
- Interest Savings – Since the credit card carries a low-interest rate, therefore, if the cardholder chooses to use the rollover credit facility, then the interest incurred on the bill will be much lesser. Hence, with these credit cards, you do not have to pay a high-interest charge on the outstanding amount.
- Clearance of existing credit card debts – With the help of low-interest-bearing credit cards, cardholders can pay off the debts that have been accumulated on their existing credit cards.
Where there are advantages, there are disadvantages as well. Below-mentioned are the disadvantages of low-interest rate credit cards-
- Incur a high fee – These credit cards are generally offered when an individual pays off all the existing debt using this card. Therefore, while in the process of a balance transfer, a fee is being charged in such process. Therefore, an individual needs to examine all the details very carefully while switching from a high-interest rate credit card to a low-interest rate credit card.
- Extended to the people with high CIBIL Score – This credit card is generally offered to those people who have a high credit score, no discrepancies in credit card repayment, etc.
- No additional benefit – Since these credit cards offer a low-interest rate to the cardholders, you may not be provided with additional benefits such as bonus reward points, cashback, and other deals and benefits that you get with regular credit cards.
- High-interest rate on other benefits – With low-interest rate credit cards, you have to pay a high fee on the other benefits that you avail with these credit cards, such as a high fee on the cash advance facility.
Who Can Apply for A Low-Interest Rate Credit Card?
Low-interest credit cards are not offered to all applicants. Only the applicants who have a high credit card or those who have High-Net-Worth are given the offer to avail this facility.
The reason behind this is that these credit cards are designed in such a way that suits people with strong credit profiles, hence offering a low risk to the bank.
An applicant who would want to apply for this credit card must ensure to have a great credit score and should take care to pay his dues on time. By following such simple steps, in the due course of time, he will get eligible to avail the facilities of a low-interest rate credit card.
Is It Worth Having A Low-Interest Credit Card?
Having a low-interest-rate credit card can help you save a lot when you carry an outstanding balance on your card from the previous billing cycle. So, Yes, it is worth it having a low-interest credit card because the cards keep their promise of low interest. But the thing to remember is that most of the low-interest credit cards come with a high annual fee targeting super-rich individuals (other than the IDFC FIRST Bank credit cards). So, before choosing one, you must think about whether you really need it or not.
If you make big purchases with your credit card carrying an outstanding balance month on month, you should undoubtedly go with a low-interest credit card keeping all your other requirements in mind. We are here with a list of the best low-interest credit cards in the country to help you out choosing one!
Bottom Line
After going through the article, you might have understood all about low-interest rate credit cards and their benefits. If you are paying high interest on your credit card’s outstanding balance, you must apply for one of these cards in order to avoid it. Also, don’t forget to compare the low-interest credit cards with other factors as well, such as annual fees, benefits of the cards, etc. If you already have a low-interest credit card, share your experience having it with us and other readers in the comment section below.
FAQs:
No, if you pay the full amount due before the billing due date, you don’t have to pay any interest on it.
The IDFC FIRST Bank credit cards (IDFC First Wealth, IDFC First Select, IDFC First Classic, and IDFC First Millennia) have the lowest interest rate starting from 0.75%.
With time, by increasing and maintaining your CIBIL Score, you can always ask your respective bank to provide you with low-interest on your credit card.
APR stands for Annual Percentage Rate. A 0% APR means that you do not have to pay interest on certain transactions for a particular period of time. When it comes to credit cards, 0% APR is often associated with the introductory rate you may get when you open a new account.
Fraud protection, unsecured lending, and other expenses are the reason behind the high-interest rates of credit cards.
The most effective way to get a credit card with a low APR is to shift to a balance transfer credit card.
Compare India’s most rewarding credit cards under one roof and pick the one that works for you the best.