Top Low Interest Credit Cards in India: A Guide to Saving on Interest

While the golden rule of credit cards is to pay your bill in full every month, sometimes life happens, and you need to carry a balance. In such situations, the interest rate (also known as the Annual Percentage Rate or APR) on your card becomes critically important. Standard credit card APRs in India can be as high as 42% per annum. However, there are low interest credit cards India that can significantly reduce this burden.

Who Should Get a Low Interest Credit Card?

A low interest credit card is ideal for individuals who:

• Occasionally carry a balance from one month to the next.
• Plan to make a large purchase and pay it off over a few months.
• Want to transfer a balance from a high-APR credit card to save on interest charges.

Top Picks for Low Interest Credit Cards in India

Here are some credit cards known for their relatively lower interest rates compared to the industry average. Note that the final rate offered depends on your credit profile and relationship with the bank.

1. HDFC Bank Credit Cards

HDFC Bank is known for offering some of the most competitive interest rates to customers with a strong credit history and a good banking relationship. Cards like the HDFC Regalia or Infinia for premium customers can have rates significantly lower than the standard market rate, sometimes as low as 1.99% per month.

2. Axis Bank Credit Cards

Axis Bank also provides attractive interest rates on its range of credit cards, especially for its prime customers. If you have a good credit score, you can often negotiate a lower interest rate on cards like the Axis Bank Magnus or Select.

3. ICICI Bank Credit Cards

ICICI Bank offers a variety of cards, and having a good relationship with the bank (like a salary account or a long-standing savings account) can help you qualify for a card with a lower-than-average interest rate.

How to Get a Low Interest Rate

• Maintain a High Credit Score: A CIBIL score above 750 is your best tool for negotiation.
• Have a Good Relationship with the Bank: Having a salary account or a significant fixed deposit with a bank can give you leverage.
• Look for Balance Transfer Offers: Some cards offer a very low introductory interest rate for a few months if you transfer your balance from another card. This can be a great short-term solution.

Conclusion

While paying in full is always the best strategy, having one of the low interest credit cards India in your wallet can act as a financial safety net. It can save you a substantial amount of money in interest charges during times when you need to revolve your credit. Always check with the bank for the specific interest rate applicable to you before applying.