The interest rate on credit card is the rate charged by the banks on the amount borrowed by the credit cardholder. The interest charges are applicable only to those cardholders who don’t pay their outstanding in full. For instance, if customer’s credit card bill amount for a previous billing cycle is Rs.10, 000, and he/she wishes to make a partial payment, either minimum amount due or even lesser than that, then the bank will levy finance charges according to its policy. However, credit cards with low interest rates help the users to manage their finances in a better way.
Best Low-Interest Credit Cards
|Credit Card||Interest Rate per month||Annual Percentage Rate (APR)|
|HDFC Bank Infinia Credit Card||1.99%||23.88%|
|SBI Unnati Credit Card||2.5%||30%|
|YES FIRST Preferred Credit Card||2.4%||32.92%|
|YES Prosperity Edge Credit Card||2.4%||32.92%|
|Axis Bank Vistara Infinite Credit Card||2.95%||41.7%|
*Please note that the interest rates mentioned above are subject to change at the bank’s sole discretion.
HDFC Bank Infinia credit card’s finance charges are payable at the monthly percentage rate on all transactions from the date of the transaction in case the cardholders choose not to pay his balance in full till it is paid back. Finance charges, if payable, are debited from the account till the outstanding on the card is paid in full.
HDFC Infinia credit card is a premium credit card, specially designed to provide superior value and benefits relevant to one’s lifestyle choices. An exclusive rewards program lets one to earn huge rewards which can be redeemed to avail curated global experiences.
No pre-set spending limit- This is a unique feature of the Infinia Credit Card. It allows customers to spend beyond the assigned limit. However, this facility may be available to users on the basis of spend and repayment pattern.
Priority Pass Membership- Through this membership, customers can get preferential access to more than a thousand airport lounges across the globe along with refreshment and business center facilities. With Infinia, the add-on cardholder can also use the membership equally.
Rewards Program- The card offers 5 reward points per Rs. 150 across all categories. 2X rewards are offered on dining spends and 10X on travel and shopping spends on HDFC SmartBuy. The accumulated rewards can be redeemed against a curated list of experiences across the world, for flight and hotel bookings and also against a catalogue of premium product purchases. Points can also be converted into air miles of leading domestic and international airlines.
Insurance Benefit- Infinia credit card offers complete protection in the form of air accident death coverage of up to Rs. 3 crore, medical emergency cover of Rs. 50 lakh and lost card liability cover of up to Rs. 9 lakh.
Contactless Payment Technology- The HDFC Bank Infinia Credit Card is enabled for contactless payments, facilitating fast, convenient and secure payments at retail outlets.
SBI Unnati credit cardholders are required to pay the finance charges at the monthly interest rate on all transactions including unpaid EMI installments from the date of the transaction in the event of the cardholder choosing not to pay his balance in full till it is paid back.
SBI Unnati Credit Card is best for people who are looking for a basic credit card for everyday use. It has some unique features and benefits which makes it stand out from other credit cards.
No Annual Fee for First Four Years – The most unique of SBI Unnati credit card is that there is no annual fee for the first four years.
No Need for High Regular Income – Another feature of this card is that one does not necessarily need to have a higher income to apply for this card. To get an Unnati credit card, all one needs to have is a minimum fixed deposit of Rs. 25,000. Even people who have a low or zero credit history can apply for this card, as long as they fulfill the eligibility criteria.
Reward Points- Customers can avail 1 reward point for every Rs.100 spent.
Fuel Surcharge Waiver- Customers can enjoy a 1% fuel surcharge waiver for every purchase of fuel, in the range of Rs. 500- Rs. 3,000.
Balance Transfer on EMI: This feature allows one to transfer accumulated outstanding amounts of other banks’ credit cards to SBI Unnati Credit card, and avail SBI’s lower interest rates to repay in EMIs. Interest rates vary from a low 0.50% for 3 months to 0.75% for 6 months EMI.
YES First Preferred credit card’s finance charges will be levied on the total unpaid balances (both retail and cash), till the outstanding is paid in full.
YES FIRST Preferred Credit Card is well-suited for shopping and travel. An excellent rewards program and complimentary access to international airport lounges are among its major highlights.
Bonus Rewards on Joining and Renewal- Make the first transaction within 90 days of card issuance and get 15,000 bonus reward points. Get 10,000 extra reward points on each renewal.
Milestone Benefits– Spend Rs. 7.5 lakh in a year and earn 20,000 bonus reward points.
Preferred Reward Points- Earn rewards on this card for every purchase at the given rate-
- 4 Reward Points per Rs. 100 across all categories
- 8 Reward Points per Rs. 100 on domestic airlines, travel agencies, and tour operators and dining
- Register for YES PayNow for utility bill payment and get 1,000 reward points
Insurance Benefits- The card also offers insurance cover including-
- Flight Accident Cover of up to Rs. 1 crore
- Emergency overseas hospitalization cover of Rs. 25 lakh
- Credit Shield Cover in case of accidental death of the primary cardholder
Fuel Surcharge Waiver- Enjoy fuel surcharge waiver across all fuel stations in India for transactions between Rs. 400 and Rs. 5,000.
YES Prosperity Edge credit card’s finance charges will be levied on the total unpaid balances (both retail and cash), till the outstanding is paid in full.
YES Prosperity Edge Credit Card rewards its user on all their transactions. Bonus reward points are earned on grocery, department, dining, and supermarket transactions.
Reward Points – The reward points that can be earned on this credit card are:
- 4 reward points on every Rs. 100 spent on Department Stores, Grocery Stores, Supermarkets, and Dining spends
- 2 reward points are earned per Rs. 100 spent on other categories
- 500 Reward points are earned per YES PayNow registration
Annual Bonus Rewards – Users earn 15,000 reward points on spending over Rs. 6.00 lakh in an anniversary year.
Reward Point Redemption – Users can make flight, Hotel, Movie ticket booking through reward points. 4 Reward Point = Re. 1 / 1 JPMile.
Insurance Coverage – Users can avail the following cover:
- Air Accident Cover – In case of death due to flight accident user can get up to Rs. 50 lakh
- International Medical Insurance – Customer is insured up to Rs. 15 lakh
- Credit Shield – Cardholder outstanding amount is insured and the customer or family does not have to pay the bill in case of primary cardholder’s death by accident
Fuel Surcharge Waiver – Users get fuel surcharge waiver if they transact between Rs. 400 and Rs. 5,000.
Axis Bank Vistara Infinite credit cardholders are required to pay interest charges on all new transactions from the transaction date on the total amount due if it is by the payment due date.
Axis Bank Vistara Infinite Credit Card is a premium card best suited for travelers. The card provides many features that make traveling easy, convenient, and luxurious.
Welcome Gift – Cardholders will get a free Vistara Business Class ticket and Club Vistara Gold Membership.
Club Vistara Points – Users earn 6 CV points per Rs. 200 spent.
Milestone Achievement Benefits – Bonus Rewards Points that can be earned are as follows
- 10,000 CV Points on spending Rs. 1.00 lakh
- 1 Business Class ticket on spending over Rs. 2.50 lakh
- 1 More Business Class ticket on spending over Rs. 5.00 lakh
- Additional Business Class Class ticket on spending over Rs. 7.50 lakh
Lounge Access – Customers get free access to airport lounges at many Indian airports.
Dining Discounts – Cardholders are eligible for a 15% discount at over 5,000 Restaurants in India.
Travel Insurance – Users are secured for the following scenarios:
- Lost Card Liability – Rs. 3.00 lakh
- Loss of Travel Documents – Up to USD 300
- Loss of Check-in Baggage — Up to USD 500
- Delay of Check-in Baggage – Up to USD 300
Interest-free Credit – Depending on the date of transaction, a cardholder enjoys an interest-free credit period of 20-50 days.
Advantages of Low Interest Rate Credit Cards
Low-interest credit cards have the following advantages:
Savings on Interest – Since the credit card charges a low interest rate, if the cardholder chooses to use the rollover credit facility, then the interest incurred on the bill will be comparatively much lesser. However, if an individual is unable to pay the entire credit card bill in 30 days, the interest charged on the balance will not be high.
Payment of Current Credit Card Debt: Customers can pay off the accumulated credit card debt with the help of low-interest credit cards.
Suggested Read: Credit Card Interest Rates
Disadvantages of Low Interest Rate Credit Cards
Low-interest credit cards have the following disadvantages:
Fewer Perks: Customers who opt for low-interest credit cards may not be able to avail various perks such as discounts, cashback, rewards that are associated with comparatively higher interest credit cards.
Fee on Balance Transfer: Customers can pay off current debts via low-interest cards; one is still required to be careful while doing a balance transfer. As the credit cards with low interest rates charge a fee on all balance transfer.