Credit card interest rates are the highest among all kinds of borrowings, sometimes going as high as 3.8% p.m., which is why it is not advised to pay just the minimum amount due or miss payments on your card bill. A credit card’s interest rate might not be relevant to you if you make full payment every month as you will not be charged any interest. However, under certain circumstances, you might have to carry a balance, which will incur heavy interest charges on the unpaid amount. However, there are credit cards, typically super-premium ones, that charge a comparatively lower interest rate and make credit card debts less of a burden.
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If you think you will end up carrying a balance on your card, here are five low-interest credit cards compiled by Paisabazaar that you must consider. Note that some of these are invite-only cards and not everyone will be eligible for such cards owing to internal policies of the providers.
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Image Source: Axis Bank | Axis Bank Burgundy Private Credit Card charges interest rate of 1.5% per month (19.56% p.a.). It offers 15 edge reward points for every Rs 200 spent on the card. There is no foreign exchange markup fee on international transactions and no finance charges on cash withdrawal from ATM. It also offers complimentary EazyDiner Prime membership for savings up to 25% or more at fine dine restaurants. The cardholders get unlimited lounge access at domestic and international airports. The annual fee is Rs 50,000 for credit card applicants but no annual charges for Burgundy Private customers.
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Image Source: IndusInd Bank | IndusInd Bank Indulge Credit Card charges interest rate of 1.79% per month (21.48% p.a.). It offers 1.5 reward points for every Rs 100 spent and up to Rs 3,000 off on dining twice a year at 100+ restaurants. It also offers 24x7 concierge services to help you make dining reservations, flight bookings, hotel reservations, and more. The cardholders get complimentary travel insurance of up to Rs 2.5 crore. The card charges a one-time joining fee of Rs 2 lakh.
Image Source: HDFC Bank | HDFC Infinia Credit Card Metal Edition charges interest rate of 1.99% per month (23.88% p.a.). The cardholders get complimentary Club Marriott membership for a year. It offers 10x reward points on your travel & shopping spends via SmartBuy and five reward points on every Rs 150 on retail spends, except fuel and wallet reload. The cardholders get unlimited lounge access at airports within and outside India at 1,000 plus airport lounges under the Priority Pass Program. The annual fee is Rs 12,500.
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Image Source: HDFC Bank | HDFC Diners Club Black Credit Card charges interest rate of 1.99% per month (23.88% p.a.). The cardholders get complimentary annual memberships of Club Marriott, Forbes, Amazon Prime, Dineout Passport, MakeMyTrip BLACK & Times Prime. It offers up to 10x reward points on spends via SmartBuy and 2x on weekend dining. The cardholders get five reward points for every Rs 150 spent. The cardholders also get unlimited airport lounge access to 1,000 plus lounges in India & worldwide. The annual fee is Rs 10,000.
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Image Source: YES Bank | YES FIRST Exclusive Credit Card charges interest rate of 1.99% per month (23.88% p.a.). It offers six reward points per Rs 200 spent on selected merchant categories and 12 reward points per Rs 200 spent on other categories. The cardholders get unlimited international airport lounge access under the complimentary Priority Pass Membership and three domestic lounge accesses per quarter for primary and add-on cardholders. The users get 25,000 bonus reward points on spending Rs 20 lakh in a year. It charges 1.75% forex markup fee on international transactions. The annual fee is Rs 999.
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Have a disciplined approach to your credit behaviour. Once you get a credit card, it is critical that you use it smartly and responsibly. Since credit cards offer a significant interest-free period, there may be a tendency to overspend while travelling in India or overseas. If you spend more than you can repay and cannot pay your credit card bill on time, you will incur interest charges along with late payment fees.
Paisabazaar has shortlisted the best low-interest rate credit cards, along with rewards, complimentary benefits and other features. All credit card information is sourced and updated as of September 19, 2022. We arranged these credit cards according to the least interest rates while carrying forward the balance amount on card.
Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
