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Best Credit Cards with Lowest Interest Rate
Credit cards, in their essence, are unsecured loans that the bank offers you at very high interest rates. You do have a 45-50 day interest-free period, but some people might not be able to repay their dues in time. This is never advisable since credit cards can have interest rates as high as 3.5% per month or even up to 50% per annum! There are certain credit cards with a low interest rate, however
Having a credit card with a low interest rate helps you manage your outstanding dues in the next payment cycle a much lower rates than other cards. It also allows you to budget your expenses for the consequent month. Following is a list of the best credit cards with lowest interest rate in India.
List of 11 Best Credit Cards with Lowest Interest Rate For 2022
1. IDFC First Wealth Credit Card
- An exclusive premium credit card with various features like low foreign markup fees and travel benefits.
- Offers up to 20% discount at 1500+ restaurants across the country.
- Has a variable interest rate of as low as 0.75% per month, depending on your credit score and profile.
- Upto 4 complimentary international and domestic airport lounge access per quarter.
- Air accident coverage worth Rs 1 Crore
- 6X reward points on online spending and 3X rewards on all offline spending.
- Comprehensive travel insurance worth Rs 22,500.
- Fuel surcharge waiver across all fuel stations in India.
- Complimentary personal accident worth Rs 10 Lakhs.
- No complimentary rounds/lessons of Golf.
- Absence of unlimited access to lounges in India and abroad.
Why We Picked This Card?
The only super premium credit card in India that is lifetime free! You should definitely consider a credit card from the bank. Getting it approved is slightly tricky, though.
2. Axis Bank Burgundy Private Credit Card
- This is a top-of-the-line credit card from Axis Bank for high net worth customers in India.
- Offers a super low interest rate at just 1.5% per month, which is more than half of what a lot of entry-level cards offer
- Power-packed with premium features like complimentary hotel and dining memberships, including Club Marriott, Accor Plus, and Taj Epicure
- Complimentary air insurance worth Rs 4.5 crores
- You earn 30000 Axis Edge reward points on your first transaction.
- Zero foreign markup fees on international spends.
- 15 Axis Edge reward points for every Rs 200 spent on all categories.
- Up to 50 complimentary rounds of Golf per calendar year.
- To be eligible for this card, Axis Bank requires a net relationship value of minimum 5 Crores, making it super duper exclusive
- A Burgundy private savings account is mandatory to qualify for this credit card.
Why We Picked This Card?
This is one of the most unique cards in the Indian market with not much known about its benefits and features. If you can get it, definitely go for it.
3. HDFC Bank Infinia Credit Card
- It is a super-premium credit card that caters to all aspects of your lifestyle.
- Comes with a best-in-class reward system where your reward points can be exchanged into vouchers of Tanishq and Apple of equivalent value.
- Amazingly low interest rate of 1.99% per month on pending outstandings.
- Complimentary Club Marriott membership and access to select ITC hotels for buffet.
- Unlimited domestic and international airport lounge access across 1000+ partners across the globe.
- It comes with Accidental Air Insurance worth Rs 3 crores
- 10X reward points earned on travel and shopping via Smartbuy.
- This card is solely invite-only based on HDFC Bank’s terms and conditions, which means approval is extremely vague.
Why We Picked This Card?
This is probably the most rewarding card in India in terms of travel and cashback benefits. You need a good HDFC Bank relationship to get it.
4. Yes First Exclusive Credit Card
- Yes First Exclusive is a premium credit card with a low interest rate of 1.99% per month.
- Offers best-in-class features like 24×7 concierge services for all your travel and reservation needs.
- It comes with a milestone-based reward point system wherein 25000 points are credited on spending Rs 20 Lakh or more in a calendar year.
- Complimentary 40000 points for the first transaction within the first 90 days.
- Free Air travel insurance worth Rs 3 crores.
- Unlimited international airport lounge access in association with Priority Pass.
- 1% fuel surcharge waiver across all fuel stations in India.
- Low foreign markup fees of 1.75% on international transactions.
- Instant 25% discount for movie bookings on BookMyShow.
- The reward rate of the card is lower relative to its segment.
- Reward redemption cashback and merchandise are limited.
Why We Picked This Card?
One of only few Yes Bank credit cards that are worth the hype. Superb if you travel a lot.
5. HDFC Diners Black Credit Card
- This is a lifestyle-oriented travel credit card powered by the Diners Card network.
- Comes with annual memberships of Club Marriott, Forbes, Amazon Prime, Zomato Pro, MMT BLACK, and Times Prime.
- An impressive interest rate of 1.99% per month.
- 6 Complimentary golf games per quarter.
- 10X reward points on partner brands and 2X on weekend dining.
- Offers Accidental Air insurance worth Rs 2 Crores and emergency hospitalisation worth Rs 50 Lakhs.
- Earned reward points can be redeemed for flight and hotel bookings using Smartbuy portal.
- Not accepted everywhere due to limited acceptability of Diners network.
Why We Picked This Card?
Except the Diners network limitations, this card is super value for money and can give you multiple times return on your annual fee with its reward mechanism.
6. Intermiles HDFC Diners Club Credit Card
- Intermiles Diners Club credit card is a premium co-branded travel card.
- It offers various rewards and privileges on travel bookings, airport lounge access, and lifestyle spends.
- The card has an interest rate of 1.99% on any outstanding dues
- Low monthly interest of 1.99% per month on dues.
- Earn 8 intermiles on every Rs 150 spent
- Upto 20% discount on fine dining in association with partner restaurants.
- 16 Intermiles for every Rs 150 spent on hotel bookings and flight tickets using the dedicated channel.
- Upto 10% discount on Etihad Business class tickets and 5% on economy class tickets.
- Complimentary air accident insurance worth Rs 2 Crores.
- Not the most rewarding card in its category, especially on regular expenses
Why We Picked This Card?
If you are a frequent traveller in the Intermiles ecosystem, this is probably the best card you can get in India.
7. IDFC First Millennia / Classic Credit Card
- Millennia and Classic are two entry-level credit cards by IDFC First bank with an interest rate ranging from 0.75 to 3% per month.
- These cards are custom designed for the youth, and they offer discounts on various categories like travel, shopping, dining, and fuel.
- Complimentary roadside assistance in times of emergency.
- Accelerated reward system whenever spending crosses Rs 20,000 in a month.
- 10X reward points on all your birthday spends
- Offers personal accident of Rs 5 Lakhs
- Fuel surcharge waiver across all fuel stations in India.
- Offers lost card shield of up to Rs 25000.
- No complimentary airport lounge access.
- Milestone based rewards and offers are not applicable.
Why We Picked This Card?
No-brainer credit cards from IDFC First Bank if you have a decent relationship. Lot of regular benefits on most used apps.
8. Axis Bank Magnus Credit Card
- Axis Magnus is a premium credit card by Axis Bank. It is suitable for customers who love traveling.
- Offers 2X reward points earned when spent on travel websites like MakeMyTrip and Goibibo. 24/7 concierge services are also available for flight bookings, hotel reservations, etc.
- It has a decent interest rate of around 3.0% per month.
- 8 Complimentary international lounge access using Priority Pass
- Offers 8 complimentary VIP airport pickup services.
- 1 assured complimentary domestic flight ticket.
- Rewards and benefits are less than several other credit cards in this category.
Why We Picked This Card?
The most premium credit card from Axis Bank, the Magnus offers luxury benefits that extend way beyond lounge visits and concierge services.
9. SBI Advantage Plus Credit Card
- SBI Advantage Plus credit card is an entry-level card with decent rewards and privileges.
- It offers basic features like a fuel surcharge waiver, the facility of availing add-on cards, and rewards on bill payments.
- It has an interest rate of 2.25% per month for balance payments.
- Up to 100% of the credit limit can be used for cash withdrawal.
- It is also available against fixed deposit.
- Rewards on utility bill payments like electricity, telephone using Easy Bill pay facility.
- 2.5% fuel surcharge waiver across all fuel stations in India.
- When booking a ticket through IRCTC online, you get a 1.8% surcharge waiver.
- No travel benefits like international or domestic airport lounge access.
- Reward rate is low on categories like travel and dining.
Why We Picked This Card?
This card lets you access lower interest rates with the backing of SBI Card and super low annual fees.
10. IDFC First Select Credit Card
- Bundled with features like accelerated rewards when spending crosses the limit of Rs 20,000 in a month.
- It offers features like complimentary air accident insurance worth Rs 1 Crore
- Low interest rate ranging from 0.75-3% per month.
- No upper limit on earning reward points.
- Buy one get one offers on movies twice a month.
- 1 Reward point for every Rs 100 spent in every category.
- Zero lost card liability of up to Rs 50,000 in the event of loss or due to fraudulent activities.
- Fuel surcharge waiver across all fuel stations in India.
- 4 complimentary domestic airport and railway lounge access per calendar quarter.
- No complimentary international airport lounge access
Why We Picked This Card?
Another lifetime free card from IDFC First Bank, the Select is easy approved for most IDFC customers maintaining a decent balance. This is also a highlight from our list of best lifetime free credit cards in India.
11. Axis Bank Vistara Infinite Credit Card
- A co-branded credit card in association with Vistara is a must-have if you love traveling.
- Offers various features that are applicable for domestic and international travel.
- It charges a low interest rate of 2.95% per month for outstanding dues.
- Welcome benefits like one free business class ticket voucher.
- Complimentary Club Vistara Gold membership.
- 15% instant discount for fine dining at various partner restaurants.
- Zero lost card liability of up to Rs 3 Lakh in the event of loss of card.
- Complimentary Air accident insurance worth Rs 2.5 crores.
- Steep joining and renewal fees for the benefits offered
Why We Picked This Card?
If you love flying on Air Vistara, this card is your best friend to get free tickets, bonus points, and a pleasurable experience while flying.
Compare Best Credit Cards with Lowest Interest Rates
| Credit Cards | Joining Fees | Interest rates |
|---|---|---|
| IDFC First Wealth | 0 | 0.75-3% |
| Axis Bank Burgundy Private | 0 | 1.5% |
| HDFC Bank Infinia | Rs 12,500 | 1.99% |
| Yes First Exclusive | Rs 9,999 | 1.99% |
| HDFC Bank Diners Black | Rs 9,999 | 1.99% |
| Intermiles HDFC Bank Diners Club | Rs 5,000 | 1.99% |
| IDFC First Millennia / Classic | 0 | 0.75-3% |
| Axis Bank Magnus | Rs 10,000 | 3% |
| SBI Advantage Plus | Rs 500 | 2.25% |
| IDFC First Select | 0 | 0.75-3% |
| Axis Bank Vistara Infinite | Rs 10,000 | 2.95% |
What to look for in a good credit card with low interest rates?
1. Interest rates, obviously!
The lower the interest rates, the better the card. Especially if you have a tendency to default. But make sure you avoid defaulting as much as possible given the long term affect on your credit score and loan procuring capabilities.
2. Free credit period
All credit cards need to give you a 30-day billing period plus a minimum of 14 days of grace period to pay your bills. The higher the free credit period, the more time you get to pay off your outstanding debt without incurring any additional charges on it.
3. Cash withdrawal limit
Cash withdrawal limit is the percentage of your monthly credit limit that you can withdraw from an ATM in the form of cash. A lot of banks might restrict this for low interest credit cards so make sure you pick one that is at least above 70% of your credit limit in case cash is a requirement.
4. Rewards/ benefits
And, obviously, all credit cards these days offer great rewards and cashback that you can redeem across platforms. You can check out our list of best cashback credit cards in India. Make sure you check what you want and what the card you are applying for offers in terms of these benefits. Go through our best credit cards in India list to get a clearer idea.
FAQs
What is a decent interest rate on a credit card?
While interest rates on Indian credit cards start at just 0.75% per month, anything below 3% per month is considered decent. That said, these rates are highest for any loan category in the country.
Which credit card has lowest interest rate?
IDFC First Bank credit cards come with the lowest annual interest rates in India. They offer 0.75-3% finance charges based on your credit score and profile.
Is it better to find a credit card with low or high interest?
Theoretically, it is better to get a credit card with low interest rates, however it is strongly advised to not have any outstanding dues as the rates on these loans are higher than any other category. Additionally, defaults cause a big dent on your credit profile.