Compare Low Interest Credit Cards and Choose the One that Meets Your Expectations

Last Updated : Sept. 27, 2019, 3:38 p.m.

It’s a general tendency of most of us to get nostalgic with credit card in hand as it allows us to do so many things when we get stuck in a situation of no cash to meet the day-to-day expenditure of our lives. We get happy to make payments for utility bills, insurance premiums, travel tickets and plenty more using the credit card. Suddenly, we feel like at the top of the world with no fear at all.

But we ignore the complications of credit card bills that get beyond our reach sometimes due to injudicious spending. The bills mount even more when the interest rate is high on the credit cards. So when you get a call from the bank for credit card, do enquire about interest rate in addition to other details like fees and reward points. Follow the same method when you go to the bank or apply online for credit card.

The first and foremost thing to consider is the interest rate as it is an important determinant of the bill, which one has to pay at the end of the month. Don’t go by the fancy moves of other people with credit cards as doing the same can get you drowned financially. Just apply your mind and choose the right option. If you do not figure among the top earning class, then it is advisable you apply for credit cards that can fit your budget. Credit cards with low interest rates can help you do just that. Without much ado, just have a look at the low interest credit cards and pick one of them based on your suitability.

Best Price Card from Kotak Mahindra Bank

Kotak Mahindra Bank’s Best Price Card is the credit card with the lowest interest rate of 1.50% in India. The card is meant for exclusive use at Best Price Modern Wholesale stores only. Benefits of the cards are mentioned below.

• No joining fee
• Interest-free period of 14 days
• You can make purchases at the Modern Wholesale store with two add-on cards
• Add on cards will offer you all the benefits of Best Price Card
• You can set the spend limit on the add-on card as per your wish

UBI Advantage Card of State Bank of India

Next comes the UBI Advantage Card of State Bank of India (SBI) with an interest rate of 1.75%. Benefits of the card can be highlighted in the points below.

• Flexipay
• 24-Carat Concierge for auto, medical and personal services
• Personal concierge services include assistance for car rental and limousine referral, golf course referral and reservation support, assistance for dining referral and reservation, support for special events and performance
• Travel benefit
• Increased purchasing power

Classic Card of Union Bank of India

Union Bank of India’s Classic Card comes third with an interest of 1.90% per month. Have a look at some of the benefits of the card in the points below.

• No annual fee
• No renewal fee
• Add on cards facility
• Get 1 reward point for every Rs 100 spend on an overall monthly spend of Rs 10,000
• Gain 2 reward points for every spend of Rs 100 on a total monthly spend of Rs 30,000

Silver Card of Union Bank of India

Union Bank of India’s Silver card also features the same benefits pointed under classic card of the bank.

Advantage Plus Credit Card of State Bank of India

Next in the line is the Advantage Plus CreditCard offered by SBI with an interest rate of 2.25%. The card features a range of benefits illustrated in the points below.

• Offers credit card cash withdrawal service from more than 10 lakh MasterCard or Visa ATMs across the world
• You can receive 100% cash withdrawal limit
• You can apply for add-on cards for children or any of your family members aged above 18 years
• Flexipay will help you convert transactions into easy EMIs
• Make a purchase of Rs 2,500 and above and log on to sbicard.com within a month to convert transactions into EMIs
• Flexipay facility will be applicable only after paying five EMIs
• Interestingly, you can transfer the balance of other banks’ credit card to this card and pay EMIs at lower interest rate
• Enjoy the doorstep delivery of draft or cheque against your cash limit with Easy Money Facility

Advantage Gold Credit Card of State Bank of India

Advantage Gold Credit Card of SBI is available at an interest rate of 2.25%. Features and benefits of the card are highlighted below.

• Joining and annual fees are kept at Rs 499
• Get 10X reward points on spend of every Rs 100 on movies, dining, grocery and departmental stores
• The card is accepted in more than 2.85 lakh and 20 lakh Visa outlets in India and worldwide, respectively
• Transact in the range of Rs 500-3000 to enjoy 0% fuel surcharge at any petrol pump

Smart Gold Credit Card of Deutsche Bank

Deutsche Bank’s Smart Gold Credit Card carries an interest rate of 2.25%. Refer to the points below to know the features and benefits of the card.

• Joining fee of Rs 999
• No annual fee
• Enjoy fuel surcharge of 2.5% to minimum amount of Rs 10
• Fuel surcharge is waived for transactions ranging between Rs 400-4,000

Instant Platinum Card of ICICI Bank

ICICI Bank’s Instant Platinum Card bears an interest rate of 2.49% for customers. You can through a list of features and benefits mentioned below.

• You need to have a fixed deposit (FD) with ICICI Bank to get Instant Platinum Card
• If you do not have FD, then visit the nearest branch of ICICI Bank to avail the card
• Enjoy discount of Rs 100 on up to 2 movie tickets monthly
• Get a minimum savings of 15% on dining at more than 800 restaurants as part of bank’s Culinary Treats Program
• Opportunity to earn interest on FD and use the card to maintain day-to-day expenditure

Cash back Card of Citi Bank

Citi Bank’s Cash Back Card comes at the last in the list of credit cards with lowest interest rates in India. The interest rate on the card stands at 2.50%. Features and benefits of the cards are discussed below.

• Enjoy 5% cash back on the purchases of movie tickets
• 5% cash back is available on all utility expenses including telephone bills
• All other spends attract 0.5% cash back

(Updated on: 25th August, 2016)