These credit cards charge low annual fee, offer better long-term value

Usually, high-end credit cards, or those that offer substantial benefits, come with fees that are often on the higher side. Typically, annual fees are around Rs 5,000; many cards also charge an annual fee of up to Rs 10,000. But such high annual fees are justified only if you can make optimum use of most  benefits offered. Infact, you needn't opt for such high-end credit cards. There are cards that charge a nominal annual fee and in return, offer a host of practical benefits, such as grocery, online shopping, food ordering, and so on. If you are looking for a low annual fee credit card, here's a list of six credit cards that offer good benefits at a nominal charge. Data compiled by Paisabazaar .

Image Source: Axis Bank | Axis Bank Neo Credit Card offers Amazon gift voucher worth Rs 250, Zomato Pro 3 months subscription, Blinkit voucher worth Rs 250 and six-month subscription at 1mg as a welcome benefit. It offers 5 percent cashback (up to Rs 150 per month) on mobile recharge, electricity bill payment and DTH recharge via Paytm and 15 percent off while spending at partner restaurants in India.  The annual fee is Rs 250 on this credit card.

Image Source: SBI Card | SBI SimplyCLICK credit card offers Amazon gift card worth Rs 500 on joining, 10X rewards with partners, including Amazon, Cleartrip, BookMyShow, Lenskart, etc., 5X rewards on all online spends and 1 percent fuel surcharge waiver. The annual fee is Rs 499 on this credit card.

Image Source: Axis Bank | Axis Bank Ace Credit Card offers 5 percent cashback on utility bill payments done via Google Pay. It also offers 4 percent cashback on Swiggy, Zomato and Ola, 2 percent flat cashback on all other spends. Besides cashback on spending, during the year a cardholder gets 4 domestic lounge access and up to 20 percent off at 4000+ partner restaurants in India. The annual fee is Rs 499 on this credit card.

Image Source: HDFC Bank | HDFC MoneyBack Credit Card offers welcome benefit of 500 Cash Points. The customer earns 2 reward points on every Rs 150 spent at a store offline and 4 reward points on every Rs 150 spent online. There is renewal fee waiver on spending Rs 50,000 in the first year and 1 percent fuel surcharge waiver. The annual fee is Rs 500 on this credit card.

Image Source: Axis Bank | Flipkart Axis Bank Credit Card offers Flipkart vouchers worth Rs 500 after making the first transaction within 30 days. The customers get 5 percent cashback while shopping on Flipkart and Myntra and 4 percent cashback on preferred merchants. Besides cashback on spending, during the year a cardholder gets four domestic lounge access, up to 20 percent off on dining at partner restaurants in India and 1 percent fuel surcharge waiver. The annual fee is Rs 500 on this credit card.

Image Source: Standard Chartered Bank | Standard Chartered DigiSmart Credit Card offers 10 percent off at Blinkit and Zomato. While shopping on Myntra cardholder gets 20 percent off once in a month, 20 percent discount upto Rs 750 while booking domestic flight tickets and 10 percent discount while booking international flight tickets upto Rs 10,000 on Yatra once in a quarter. It also offers 25 percent discount on domestic hotel bookings at Yatra up to Rs 4,000 for one transaction per quarter and other benefits. The annual fee is Rs 588 on this credit card.

Have a disciplined approach to your credit behaviour. It is critical that you use your credit card smartly and responsibly. Since credit cards offer a significant interest-free period, there may be a tendency to overspend in multiple categories while shopping from partnered merchants. If you spend more than you can repay and cannot pay your credit card bill timely, you will incur hefty interest charges ranging from 28 to 49 percent p.a. along with late payment fees.

Paisabazaar has shortlisted the credit cards based on the low annual fees and offering benefits across multiple categories. All credit card information is sourced and updated as of March 21, 2022.