Credit cards are highly effective financial instruments that provide flexibility and convenience but carry the caveat of exorbitant interest rates. Despite a grace period, specific individuals may encounter difficulties promptly repaying their debts, resulting in substantial interest charges. This article examines the top credit cards with the lowest interest rates in India to assist you in making well-informed financial decisions.
IDFC First Wealth Credit Card
The IDFC First Wealth Credit Card is a high-end product that offers an extensive range of exclusive perks and a variable interest rate as low as 0.75% per month. In addition to a favourable interest rate, cardholders receive discounts of up to 20% at more than 1,500 restaurants nationwide. It distinguishes itself as a comprehensive option by providing benefits such as complimentary access to four domestic and international airport lounges each quarter, air accident coverage amounting to Rs 1 crore, and 6X reward points on online spending.
Axis Bank Burgundy Private Credit Card
Specified for individuals with a high net worth, the Axis Bank Burgundy Private Credit Card provides additional benefits beyond its nominal monthly interest rate of 1.5%. The programme offers distinctive advantages, such as complimentary memberships to hotels and restaurants, air insurance valued at Rs 4.5 crores, and a substantial 30,000 Axis Edge reward points upon the initial purchase. Nevertheless, exclusivity is paramount, as entry requirements include a minimum net relationship value of 5 crore and a Burgundy private savings account.
HDFC Bank Infinia Credit Card
Situated in the ultra-premium segment, the HDFC Bank Infinia Credit Card distinguishes itself through its exceptional attributes. It accommodates diverse facets of lifestyle through an enticing reward system, a low monthly interest rate of 1.99%, and perks including complimentary Club Marriott membership, accidental aviation insurance worth Rs 3 crores, and unrestricted access to lounges at domestic and international airports. Nevertheless, the invitation-only nature of the event, as stipulated by HDFC Bank, contributes to its aura of exclusivity.
Yes First Exclusive Credit Card
A premium offering, the Yes First Exclusive Credit Card features a low monthly interest rate of 1.99% and round-the-clock concierge services. Noteworthy features include a milestone-based reward point system, complimentary air travel insurance worth Rs 3 lakhs, and unlimited international airport lounge access through Priority Pass. Although it provides considerable advantages, the compensation rate might be comparatively low for its industry.
HDFC Diners Black Credit Card
With a monthly interest rate of 1.99%, the HDFC Diners Black Credit Card is an attractive option for travellers who prioritise their way of life. It attracts customers with benefits such as six complimentary golf games per quarter, ten times the reward points earned on partner brands, and comprehensive insurance coverage, in addition to its competitive interest rate. Consider, nevertheless, the restricted approval resulting from the Diners network.
Intermiles HDFC Diners Club Credit Card
Designed for chronic Intermiles users, this co-branded travel card carries an annual percentage interest rate of 1.99%. Although it offers perks such as complimentary access to airport lounges and reductions on high-end dining, there might be other options for recurring expenditures. Travellers benefit from exclusive promotions on Etihad Business Class tickets and complimentary air catastrophe insurance valued at Rs 2 crore.
IDFC First Millennia / Classic Credit Card
These introductory credit cards are designed specifically for young individuals, with a monthly interest rate ranging from 0.75% to 3%. A fuel surcharge waiver, complimentary roadside assistance, and accelerated reward systems are among the perks. These cards are particularly well-suited for individuals who frequently use utilities as applications.
Axis Bank Magnus Credit Card
Designed for enthusiastic individuals about travel, the Axis Bank Magnus Credit Card offers a respectable monthly interest rate of 2.0%. Although it provides perks such as eight complimentary accesses to international lounges and VIP airport transfer services, its rewards and benefits may be marginally inferior to those of other cards.
SBI Advantage Plus Credit Card
Situated in the entry-level segment, the SBI Advantage Plus Credit Card offers satisfactory perks and benefits with a monthly interest rate of 2.25%. With low annual fees and a cash withdrawal limit of up to 100 percent of the credit limit, it distinguishes itself as an affordable option for individuals seeking reduced interest rates.
IDFC First Select Credit Card
An additional lifetime free offer from IDFC First Bank, the IDFC First Select Credit Card includes accelerated rewards and a low monthly interest rate of 0.75 to 3 percent. Offering a fuel surcharge abatement, an unlimited reward point accumulation cap, and buy-one-get-one-free movie promotions, it is well-suited for IDFC customers who wish to maintain a satisfactory account balance. Nevertheless, complimentary access to international airport lounges needs to be included.
Although credit cards can be helpful in one’s financial situation, selecting one with a low interest rate is crucial to preventing significant financial obligations. The cards above provide various benefits and features to accommodate different lifestyles and preferences. Thoroughly evaluate your financial commitments and routines before choosing the credit card most effectively corresponds to your needs.
Benefits of Credit Cards
Credit cards offer a range of benefits that go beyond the convenience of cashless transactions. Here are some key advantages:
Credit cards provide a convenient and secure way to make purchases, whether in-store, online, or during travel.
Rewards and Cashback:
Many credit cards offer reward programs, allowing users to earn points, cash back, or miles for every purchase. These rewards can be redeemed for various goods, services, or travel benefits.
Building Credit History:
Responsible use of credit cards contributes to building a positive credit history, which is crucial for future loan approvals and favourable interest rates.
Credit cards typically come with an interest-free period, allowing users to defer payment for a certain period without incurring interest charges.
Credit cards can be a financial safety net during emergencies when immediate funds are unavailable.
Many credit cards provide travel-related perks, such as airport lounge access, travel insurance, and discounts on hotels and flights.
Credit cards protect consumers against fraud and faulty goods, and users can dispute unauthorised transactions.
How to Apply for a Credit Card
Identify the credit card that aligns with your financial needs and lifestyle. Consider interest rates, rewards, fees, and other features.
Ensure you meet the credit card issuer’s eligibility criteria, including income requirements and credit score benchmarks.
Prepare necessary documents such as identity proof, address proof, income proof, and passport-size photographs.
Visit the official website of the credit card issuer and fill out the online application form. Provide accurate information and double-check before submitting.
Alternatively, visit the nearest branch of the bank or financial institution offering the credit card. Collect a physical application form, fill it out, and submit it with the required documents.
The issuer will verify your details, including creditworthiness. This may involve a background check and validation of the documents provided.
Approval and Dispatch:
Upon approval, the credit card will be dispatched to your registered address. Activation instructions will be provided along with the card.
Please read the terms and conditions carefully before applying, and use the credit card responsibly to maximise its benefits.
What is a decent interest rate on a credit card?
Although monthly interest rates on credit cards in India begin at a mere 0.75%, any amount below 3% is regarded as acceptable. It is prudent to remit the complete balance during the interest-free grace period.
Which credit card has the lowest interest rate?
The annual interest rates on IDFC First Bank credit cards are among the lowest in India, varying between 0.75% and 3% according to the applicant’s credit profile and score.
Is it better to find a credit card with low or high interest?
In principle, possessing a credit card with a low interest rate is more favourable. It is essential, however, to prevent the accumulation of past-due balances, as credit card interest rates are typically higher than those of other loan categories.