Credit 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 in the Indian market.
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Low interest credit cards are the 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.
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 keep in mind is: 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 India to help you out choosing one!
Gift Vouchers worth Rs. 500 and a 5% cashback on the first EMI transaction performed within 90 days of card set-up.
3 Reward Points per Rs. 100 spent offline, 6 Reward Points per Rs. 100 spent online, 10 Reward Points per Rs. 100 on spends above Rs. 20,000.
Nil
Annual Fee – Nil
Interest Rate – 0.75% to 2.99% per month (9% to 36% per annum)
Key Features:
Annual Fee – Rs. 50,000 (Zero for burgundy private account holders)
Interest Rate – 1.5% per month (19.56% per annum)
Key Features:
1.5 Reward Points for every Rs. 100 spent using the card
Rs. 2,00,000 (no annual fee applicable) or Rs. 1,00,000 (Rs. 10,000 annual fee applicable in this case)
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:
10,000 bonus Reward Points and Complimentary Club Marriott membership for first year.
5 Reward Points for every Rs. 150 spent, reward rate of up to 3.3%
Rs. 10,000 (plus applicable taxes)
Annual Fee – Rs. 10,000
Interest Rate – 1.99% per month (23.88% per annum)
Key Features:
Complimentary Club Marriott, Amazon Prime, Zomato Gold, Forbes, Times Prime, and MMTDOUBLEBLACK memberships for a year.
5 Reward Points for every Rs. 150 spent (reward rate of up to 3.3%), accelerated Reward Points on SmartBuy
Rs. 10,000 (plus applicable taxes)
Annual Fee – Rs. 10,000
Interest Rate – 1.99% per month (23.88% per annum)
Key Features:
Gift voucher worth Rs. 500 based on spends within 90 days of card issuance and a 5% cashback on EMI transactions within 90 days of card issuance.
3 Reward Points per Rs. 100 spent offline, 6 Reward Points per Rs. 100 spent online, and 10 Reward Points per Rs. 100 on spends above Rs. 20,000.
Nil
Annual Fee – Nil
Interest Rate – 0.75% to 2.99% (9% to 36% per annum)
Key Features:
25,000 Reward Points on the first transaction
3 Reward Points per Rs. 100 on international spends, 2 Reward Points per Rs. 100 on domestic spends.
Rs. 50,000 + GST
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:
40,000 Reward Points on first transaction done within 90 days of card set up date.
6 Reward Points for every Rs. 200 spent on Select category, 12 Reward Points for every Rs. 200 spent on all purchases except from the Select category and 1000 Reward Points on each Yes PayNow registration.
Rs. 9,999 (plus applicable taxes)
Annual Fee – Rs. 9,999
Interest Rate – 1.99% per month
Key Features:
Cashback of up to 1,500 on fuel transactions within first 90 days.
You get up to 5% cashback on fuel transactions, utility bills payments, telephone bills and 1 reward point on every Rs 150 spent on other categories
Rs. 750 plus applicable taxes
Nil (for premium banking customers)
Annual Fee – Rs. 750
Interest Rate – 1.99% per month
Key Features:
Up to 20% off on shopping at partner brands and up to 25% off on travel-related spends on partner brands
Rs. 49
Annual Fee – Nil
Interest Rate – 1.99% per month
Key Features:
Get InterMiles Gold membership for the first year and up to 25,000 bonus InterMiles.
8 InterMiles on every retail spend of Rs. 150, 16 InterMiles per Rs. 150 spent on flight/hotel bookings on intermiles.com
Rs. 5,000 (plus applicable taxes)
Annual Fee – Rs. 5,000
Interest Rate – 1.99% per month (23.88% per annum)
Key Features:
5X reward points on select retail shopping spends and 2X points on all other spends on the shopper’s plan; 5X reward points on travel spends and 2X points on all other spends on the traveler’s plan
Rs. 2,500 + GST (for paid variant), Nil for the free variant
Annual Fee – Rs. 2,500
Interest Rate – 2.49% per month
Key Features:
Complimentary Epicure membership and one night stay at Taj hotels.
2 Reward Points for every Rs. 100 spent using the card.
Nil
Annual Fee – Nil
Interest Rate – 2.49% per month
Key Features:
Get a welcome gift voucher worth Rs. 500 on spending Rs. 15,000 or more within the first 90 days.
3 Reward Points on every offline spend of Rs. 100 & 6 Reward Points on every online spend of Rs. 100.
Nil
Annual Fee – Nil
Interest Rate – 0.75 to 2.99% (9% to 36% per annum)
Key Features:
5% cashback on first EMI Transaction within and gift vouchers worth Rs. 500.
3 Reward Points on every offline spend of Rs. 100, 6 Reward Points on every online spend of Rs. 100, and 10 Reward Points on every Rs. 100 on spends above Rs. 20,000.
Nil
Annual Fee – Nil
Interest Rate – 0.75 to 2.99% (9% to 36% per annum)
Key Features:
NA
4 Reward Points on every spend of Rs. 200.
Nil
Annual Fee – Rs. 250
Interest Rate – 2.95% (41.75% per annum)
Key Features:
Annual Fee – Rs. 500
Interest Rate – 2.95% (41.75% per annum)
Key Features:
You get either of Oberoi hotels/resorts vouchers worth Rs. 50K or Montblanc vouchers worth Rs. 50,000.
1 Reward Point per Rs. 100 spent on domestic purchases. 3 Reward Points per Rs. 100 spent on international purchases.
Rs. 50,000
Annual Fee – Rs. 5,000
Interest rate – 2.99% per month
Key Features:
2.5 Reward Points on every Rs. 100 spent on international transactions and 1 Reward Point on every 100 spent on domestic transactions
Rs. 2,00,000 (nil annual fee in this case), Rs. 1,00,000 (Rs. 10,000 annual fee applicable in this case)
Annual Fee – Rs. 10,000 (with a joining fee of Rs. 1 lakh)
Nil (with a joining fee of Rs. 2 lakhs)
Interest Rate – 2.99% per month
Key Features:
Oberoi e-gift voucher and a Luxe Gift card.
2.5 Reward Points on every Rs 100 spent on international transactions and 1 Reward Points on every Rs 100 spent on domestic transactions.
Rs 90,000 + GST
Annual Fee – Rs. 25,000
Interest Rate – 2.99% per month
Key Features:
After going through the article, you might have understood all about the 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 on the basis of 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.
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%.
Domestic Lounge 
International Lounge 
HDFC Bank 
SBI 
IDFC Bank 
Bank OF Baroda 
ICICI Bank 
CITI Bank 
RBL 
KOTAK MAHINDRA 
AMEX 
INDUSIND Bank 
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STANDARD CHARTERED