10 Best Low-Interest Rate Credit Cards in India
10 Best Low-Interest Rate Credit Cards in India (2024 Updated List)
Choosing a credit card
with a low interest rate is crucial for avoiding debt traps, especially if you
occasionally carry a balance. In India, interest rates (APR) on credit cards
typically range from 24% to 49% annually, but some cards offer
rates as low as 9-18%. Below, we’ve ranked the top 10 low-interest
credit cards based on interest rates, fees, rewards, and eligibility.
What Makes a Low-Interest Credit Card?
- Low APR:
Annual Percentage Rate below 30%.
- Low Penalty Charges:
Minimal late payment fees.
- Grace Period:
Interest-free period of 45–55 days.
- Balance Transfer Facilities: Options to reduce interest on existing debt.
Top 10 Low-Interest Credit Cards in India
1. SBI SimplyCLICK Credit Card
- Interest Rate:
3.35% per month (~40.2% annual)
- Annual Fee:
₹499 (waived if you spend ₹1 lakh/year).
- Best For:
Online shoppers (5x rewards on e-commerce).
- Key Perk: Amazon/Flipkart vouchers worth ₹2,000 on joining.
2. HDFC Bank Regalia Credit Card
- Interest Rate:
1.99% per month (~23.88% annual)
- Annual Fee:
₹2,500 (complimentary for the first year).
- Best For:
Frequent travellers (air miles conversion).
- Key Perk:
Lounge access and golf lessons.
- Interest Rate:
2.5% per month (~30% annual)
- Annual Fee:
₹499.
- Best For:
Utility bill payments (4% cashback).
- Key Perk:
Unlimited rewards on Google Pay transactions.
4. ICICI Bank Platinum Chip Credit Card
- Interest Rate:
3.5% per month (~42% annual)
- Annual Fee: Lifetime
free.
- Best For:
Beginners (easy eligibility).
- Key Perk:
Complimentary airport lounge access.
5. Citibank Indian Oil Credit Card
- Interest Rate:
2.5% per month (~30% annual)
- Annual Fee:
₹500.
- Best For:
Fuel spends (4% surcharge waiver).
- Key Perk: Extra rewards on Indian Oil outlets.
6. Kotak League Platinum Credit Card
- Interest Rate:
3.25% per month (~39% annual)
- Annual Fee:
₹499.
- Best For:
Movie buffs (buy-one-get-one tickets).
- Key Perk:
Discounts on Swiggy and Amazon.
- Interest Rate:
3.4% per month (~40.8% annual)
- Annual Fee:
₹750.
- Best For:
Cashback lovers (1.5% unlimited).
- Key Perk:
No minimum spending requirement.
8. Standard Chartered Super Value Titanium Credit Card
- Interest Rate:
3.25% per month (~39% annual)
- Annual Fee:
₹499.
- Best For:
Dining discounts (15% off at partner restaurants).
- Key Perk:
Fuel surcharge waiver.
9. Bank of Baroda Prime Credit Card
- Interest Rate:
1.99% per month (~23.88% annual)
- Annual Fee:
₹2,000.
- Best For:
High-income earners (₹12 lakh/year eligibility).
- Key Perk:
Reward points on international spending.
10. IDFC First Classic Credit Card
- Interest Rate:
3.5% per month (~42% annual)
- Annual Fee: Lifetime
free.
- Best For:
Low credit score applicants.
- Key Perk:
Zero forex markup.
Comparison Table
|
Card Name |
Annual Fee |
Interest Rate |
Best For |
|
SBI SimplyCLICK |
₹499 |
40.2% |
Online Shopping |
|
HDFC Regalia |
₹2,500 |
23.88% |
Travel |
|
Axis Bank Ace |
₹499 |
30% |
Utility Bills |
|
|
How to Choose the Right Low-Interest Card?
- Check APR:
Lower is better.
- Annual Fees:
Opt for lifetime-free cards if you’re a light spender.
- Rewards:
Balance low interest with cashback/benefits.
- Eligibility:
Salary requirements (e.g., ₹3–12 lakh/year).
Tips to Reduce Credit Card Interest
- Pay bills in full before the due date.
- Use balance transfer facilities (e.g., HDFC’s 0% EMI
plans).
- Negotiate with your bank for rate reductions.
FAQs
Q1. Which bank has the
lowest credit card interest rate in India?
HDFC Regalia and Bank of Baroda Prime offer ~24% annually.
Q2. Are low-interest
cards good for long-term debt?
No—consider a personal loan for lower rates (~10-15%).
Q3. Do low-interest
cards have poor rewards?
Not always (e.g., Axis Bank Ace offers 4% cashback).
Final Note: Always verify terms with your bank, as rates
and fees may change. Pair low-interest cards with timely payments to
avoid penalties.