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What Is The Best Credit Card With The Lowest Interest Rate In India

Interest rate is one of the most important factors that one should consider before selecting anything related to finance. Similar is the case with credit cards. When you use your credit cards to pay off your expenditure bills, the amount is added up on a monthly basis which you have to pay on the next payment cycle. The interest charged on this outstanding amount is called credit card interest.

 

Credit card interest plays a major role in your financial planning, high credit card interest rates can imbalance your financial planning and therefore, it is essential to choose a credit card that can satisfy your requirements at low-interest rates.

Credit Cards with a Low-Interest Rate

The main feature of a credit card is that it allows you to carry forward your outstanding amount till the next payment cycle. Therefore, you can spend huge amounts without taking a loan by using this feature. In such a scenario where you decide to take an outstanding amount forward, you have to pay interest to the bank on that amount. 

 

The interest on credit cards is a very important aspect that you should research about before choosing your credit card. Low-interest rate credit cards are very beneficial as they would save you from high interest charges. It is especially designed for people who believe in making lump-sum payments using their credit cards. 

Advantages of Credit Cards with the Lowest Interest Rate

As the name suggests, low-interest rate credit cards are very beneficial for huge-amount spenders. Some of the major advantages that holders will enjoy are:

  • Obviously, the main benefit that the low-interest rate credit cards will offer is a lower interest amount. In such a scenario, even if the holder is not able to pay interest for a long time, the outstanding amount won’t be outrageous.

  • Low-interest rate credit cards help the holders in clearing their credit card debts easily

List of Credit Cards With the Lowest Interest Rate

The first and most important step of getting a credit card is researching and choosing the right credit card. Try finding a card that satisfies your requirement at the lowest interest rate. Here is a list of the best low-interest rate credit cards -

  • HDFC Bank infinia Credit Card.

  • YES FIRST Exclusive Credit Card

  • Axis Bank Vistara Infinite Credit Card

  • HDFC Diners Club Black Credit Card

  • Axis Bank Burgundy Private Credit Card.

Lowest Interest Rate Credit Card 2021

To help you in selecting the best credit card, here is a brief description about all the best low-interest rate credit cards -

  • HDFC Bank infinia Credit Card

The HDFC Bank infinia Credit Card is a premium range credit card offered by HDFC to only a few selected customers on a special invite by HDFC. It is available for individuals with high net worth and provides offers on travel, shopping, dine-in, etc. The annual fee of the HDFC Bank Infinia credit card is Rs. 10,000. The monthly interest rate is 1.99%, and the annual interest rate is 23.88%. Here are some other interesting features of this card -

  1. Club Marriott membership as a welcome perk.

  2. Global complimentary lounge access for both primary and add-on holders.

  3. Earn 5 bonus reward points for every spend of Rs150 or more.

  4. Personal concierge worldwide 24*7

  5. Only 2% markup fee on foreign currency transactions.

  • YES FIRST Exclusive Credit Card

Especially designed for travel enthusiasts, the YES FIRST Exclusive Credit Card is packed with benefits like complimentary Priority Pass Membership and memberships at luxury hotels and resorts. The annual fee of this credit card is Rs. 9,999. The monthly interest rate is 1.99% and 23.88% per year. Here are some other interesting features of this card-

  1. 40,000 bonus reward points on first purchase done within 90 days of issue.

  2. Earn 30,000 bonus reward points on each renewal.

  3. 12 bonus credit card reward points on transactions above Rs200 excluding transactions of ‘Select Categories’.

  4. Complimentary access to selected Golf courses in India 4 times.

  • Axis Bank Vistara Infinite Credit Card

This credit card is launched in collaboration with Vistara Airlines. This card is very beneficial for all those who travel by Vistara airlines. The annual fee of this credit card is Rs. 10,000. The interest rate on monthly basis and annual basis is 2.95% and 41.75%, respectively. Here is a list of benefits you will get along with this card -

  1. Business-class ticket coupons as a welcome perk.

  2. Club Vistara Membership

  3. 6 points on every spend of Rs200 or above

  4. Additional business class tickets on completing the milestone expenditure.

  5. Lounge access to selected Indian lounges.

  • HDFC Diners Club Black Credit Card

One of India’s best premium range credit cards is the HDFC Diners Club Black Credit Card. It offers deals on multiple fields like food, travel, shopping, golf, etc. The annual fee of this credit card is Rs. 10,000. The interest rate on monthly basis and annual basis is 1.99% and 23.88%, respectively. Here is a list of benefits you will get with this card -

  1. Annual memberships with Forbes, Zomato Pro, Amazon Prime, MMT Black, etc.

  2. Foreign currency markup of only 1.99%.

  3. Access to selected golf courses.

  4. 5 bonus reward points on retail spending of Rs. 150 or above.

  5. Global access to 1000+ lounges.

  • Axis Bank Burgundy Private Credit Card

Another premium range credit card that is designed for individuals with high net worth. It offers benefits on travel and various other categories. It is offered free of cost to clients of Burgundy Private. The annual fee of this card is Rs50,000. The interest rate on a monthly basis and annual basis is 1.50% and 19.56%, respectively. Here is a list of benefits you will get with this card -

  1. EazyDiner Prime membership

  2.  Global access to selected lounges for Priority Pass holders

  3. 50 rounds of golf annually

  4. 15 EDGE bonus reward points for every purchase of Rs200

  5. 30,000 EDGE bonus reward points on first spend as a welcome perk.

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Disadvantages of Credit Cards with the Lowest Interest Rates

Every element has its advantages and disadvantages. It is important to know all aspects of the credit card you choose to avoid any future hassle. Some major drawbacks of low-interest credit cards are -

  • The low-interest rate credit cards are not granted to all applicants. Only the applicants with high credit scores and high-net-worth individuals (HNIs) are usually given credit cards with low interest.

  • Low-interest rate credit cards do not come with features like cash-backs, discounts, offers, reward points, etc.

  • Another major drawback with low-interest rate credit cards is that if a holder ever withdraws cash using these cards, a high-interest rate will be charged upon it. The users should avoid credit card cash withdrawal  using low-interest rate credit cards.

  • High-interest rate is levied on all money transfers from low-interest rate credit cards. Holders have to be very careful while transferring money via these cards.

Conclude

Like every other credit card offered in the market, low-interest rate credit cards also have some pros and cons. However, one should apply for the above mentioned best low-interest rate credit cards according to their goals and needs.  The banks offer a lot of additional perks and credit card benefits to the cardholder to facilitate their transactions.

FAQs

Everyone prefers credit cards with low-interest rates, but it is more beneficial for those who spend huge amounts via their credit cards. Some of the best low-interest credit cards in India are -

  • HDFC Bank Infinia Credit Card

  • YES FIRST Exclusive Credit Card

  • Axis Bank Vistara Infinte Credit Card

  • HDFC Diners Club Black Credit Card

  • Axis Bank Burgundy Private Credit Card.

For all those who use credit cards for large- amounts of transactions, it is important to choose a low-interest rate credit card. The top low-interest rate credit cards 2020 are -

  • Kotak Mahindra BestPrice-Premium Card

  • Union Bank of India Silver/Gold Credit Card

  • SBI Advantage Plus Credit Card

  • HDFC Infinia Credit Card

  • ICICI Bank Instant Platinum Credit Card.

Yes, you will save more if you have a credit card with a low-interest rate. A lower interest rate stands for a low amount charged as interest. It also helps the holder in clearing debts acquired over time. Another benefit is the low-interest rate means the annual percentage rate is also low, which will benefit cardholders even after the first year.

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