September 18, 2025 · 10 mins read
Santosh Kumar
Having a credit card with a low interest rate can be beneficial for those looking to buy some expensive items through the use of credit cards. Usually, interest rates in the range of 1.5% to 2.99% per month are considered low when it comes to credit cards. Here, we take a look at the pros and cons of having a credit card with low interest rates, who should get a low-interest credit card, etc.
SBI SimplySAVE Advantage Credit Card comes with a joining fee of Rs . 499, and a cash advance fee of 2.5% per month. The card also offers other attractive features such as Cash Point for every Rs . 100 spent, up to 2.5% value back with cash points earned from grocery and departmental store shopping, and a 50-day credit-free period.
The HDFC Infinia Credit Card is a credit card with a regular interest rate and a cash advance fee as low as 2.5%. However, the joining fee and renewal fees are high at 30,000 and 10,000, respectively. The card does not have a pre-set spend limit and also lets you collect 5 Reward Points with every transaction worth Rs . 150.
The SBI Prime Advantage Credit Card can be availed at a low interest rate of 1.99% pm and a cash advance fee of 3.5% pm. Although both the joining fee and renewal fee are quite high at Rs . 2999, you can earn up to 10 reward points from your shopping at Departmental Stores, Dining, or International spends.
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Among all the YES Bank credit cards, this card charges one of the lowest interest rates. The interest rate per month is 1.99% and for a year is 23.99%. It is one of the best premium credit cards given to those who earn Rs 1.50 Lakh per month. This card is great for all-around usage as it offers lounge access, movie offers, golf benefits, and much more. Annual fee- Rs. 9,999 + GST (waived off on spending INR 6 Lakhs in a year)
The SBI Advantage Plus Credit Card charges a meagre joining as well as renewal fee of Rs . 500. It also comes with the minimum regular interest rate of 2.25% p.m. and a 2.25% p.m. cash advance fee. Additional feature includes a credit-free period of 50 days.
At a low regular interest rate of 3.6% p.m. and a 2.5% cash advance fee, this luxury card makes an attractive deal. The HDFC Regalia Credit Card requires cardholders to pay a joining fee of Rs . 2500 and a renewal fee of the equivalent amount. Additionally, it grants a welcome benefit of 2500 Reward Points.
With attractive features such as Zero lost credit card liability benefit, the HSBC Live+ Credit Card does not incur any joining fee, but a renewal fee of Rs . 750 is charged by HSBC upon card renewal, which is waived off if you spend Rs . 1 lakh and above annually on your card. Before you make a choice, don't forget to compare, research, analyse, and then decide on the best credit card for you.
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There is no denying the fact that having a credit card with low interest rates is quite beneficial. Let's take a look at some of the benefits:
Savings on annual fee: Generally, these cards carry a lower annual fee than most other credit cards. The credit card company may also waive the annual fee if a certain amount is spent on the card every year.
Savings on interest: Since the credit card carries a low interest rate, if the cardholder chooses to use the rollover credit facility, then the interest incurred on the bill will be much lower. In case the individual is unable to pay the entire credit card bill in one month, the interest charged on the balance will not be exorbitant.
Come with a lower annual percentage rate: Low-interest credit cards come with a lower annual percentage rate. This enables those having credit cards with low interest to continue availing lower interest rates even after the introductory period.
Helpful in paying current credit card debt: With the help of low-interest credit cards, one can pay off the accumulated credit card debt. This can be done by individuals without needing to pay any extra interest.
Also Read: What Is a Temporary Credit Card Lock & How to Use It?
Though there are advantages that can be availed when it comes to having a low-interest credit card, it is not free of disadvantages.
Here are some of the disadvantages associated with it:
Not many perks available: Other than getting low interest rates, an individual is not eligible for many perks. Unlike other credit cards, low-interest credit cards may not offer individuals extensive rewards, cash back, air miles, offers, or discounts.
Offered to high-net-worth individuals: Lower interest rates are offered to HNIs to attract them. Banks provide such perks to these individuals to ensure their business comes to them.
Offered to those who have high credit scores: Moreover, the cards are designed for only those individuals with good credit profiles. If you are an individual who has a clean credit record, has made timely payments on bills and EMIs, and has a good spending pattern, you might be eligible for lower interest rates on your credit card.
Balance transfers incur a fee: Though low-interest cards offer an individual the ability to pay off current debts, one needs to be careful while doing a balance transfer. This is because credit cards with low interest rates charge a fee on all balance transfers. Hence, one needs to be aware when transferring other credit card debt to the low-interest credit card.
Cash advances come at high interest rates: Low-interest credit cards come with high interest rates when it comes to cash advances. Hence, it is not recommended to go for cash advances on the basis of low-interest credit cards.
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Banks are willing to take the risk of non-repayment on credit cards when it comes to HNIs and those with good credit scores. In most cases, banks offer these cards to high-net-worth individuals whom they think are eligible for such benefits.
As already stated, low-interest cards are designed for those with strong credit profiles because the risk borne by the banks is much lower. So, if you wish to avail low interest rates on your credit card, you need to make sure you check your credit report regularly.
Ensure you pay your credit card dues and any other loan EMIs on time. Have a balance between secured and unsecured debt to ensure your credit profile is favorable. In time, if you are able to secure a high credit score, you can approach your bank to see if you are eligible for a credit card with lower interest rates.
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Choose the best low-interest credit cards with a focus on delivering options that either allow you to take maximum advantage of an intro 0% APR or balance a solid intro offer with ongoing rewards value.
All of our selections offer a 0% intro APR on both purchases and balance transfers, and we only selected cards with intro periods that lasted for at least 15 months for both types of APR. With more than a year to manage your credit card balances, these picks are useful tools for keeping track of your finances.
While those most concerned with paying off existing debt can find other cards with longer balance transfer intro periods, we decided not to include those that feature shorter purchase APR intro periods. If you’re looking for more options, consider our picks for the best balance transfer cards and the best 0% APR cards.
We also made sure every card on our list doesn’t charge an annual fee — you probably don’t want to pay that upfront cost when you’re already thinking about how to handle interest payments. Last, we consciously chose not to select cards that offer the potential to receive an especially low ongoing purchase APR. While a low ongoing APR can be a terrific feature in a credit card, there’s no guarantee the issuer will approve you for the lowest possible APR, even if you have excellent credit.
In the end, we considered it best not to suggest you’re likely to end up on the lower end of a card’s APR range when we don’t know exactly how each issuer will determine your interest rate.
Here are some things to consider:
Think about how you’re going to use the low-cost credit card (for example, for purchases or a balance transfer) and make sure you apply for one that offers the low rate on that type of transaction.
It’s a good idea to improve your credit score if you can. The better your credit score, the more chance you’ll have of getting the card you want.
Even with the lowest APR credit cards, you'll still be paying to borrow, so make sure you can afford to do so.
Check that a low APR card is the cheapest way to borrow for your situation.
If you are paying high interest on your credit card’s outstanding balance, you must apply for one of these cards in order to avoid it. Also, don’t forget to compare the low-interest credit cards with other factors as well, such as annual fees, benefits of the cards, etc.
Also Read: How to Reactivate a Temporarily Suspended Credit Card?
To apply for a lower-interest-rate credit card, it is advised that you maintain a good credit score and a healthy credit report.
No, banks offer credit cards with lower interest rates depending on various factors such as a good credit score, credit history, etc.
At a low regular interest rate of 3.6% p.m. and a 2.5% cash advance fee, this luxury card makes an attractive deal. The HDFC Regalia Credit Card requires cardholders to pay a joining fee of Rs . 2,500 and a renewal fee of the equivalent amount. Additionally, it grants a welcome benefit of 2,500 Reward Points.
The HDFC Infinia Credit Card has a regular interest rate and a cash advance fee as low as 2.5%.
Yes, absolutely. Low-interest-rate credit cards can help you save more if you carry forward your balances from one month to another.
Credit cards in India typically don't offer true 0% interest rates on purchases. However, they may offer a 0% interest rate for a grace period or on promotional offers.
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