Low Interest Credit Cards That Help You Save More

When the world of credit cards seems like a maze of high interest rates and hidden fees, finding a card that doesn't make your wallet weep is like striking gold. Nobody wants to pay more than they need to, especially when managing finances. So, if you're someone who might sometimes carry a balance (no judgment here, life happens!), then a low-interest credit card is your best friend.

These aren't just about saving a few bucks; they're about giving you breathing room. A lower interest rate means less money wasted on finance charges and more money for the things that matter. Think of it as a smart financial move that keeps more cash in your pocket. It's time to get savvy with your plastic!

Table of Contents

• What's the Deal with Low-Interest Credit Cards?
• Why Should You Care About Low Interest?
• Top 5 Low Interest Credit Cards in India (June 2025 Edition)
• How to Pick the Right Low-Interest Card for You
• Keeping Your Interest Low: Smart Habits

What's the Deal with Low-Interest Credit Cards?

So, what exactly is a low-interest credit card? Simply put, it's a credit card that charges a lower Annual Percentage Rate (APR) on your outstanding balance compared to regular cards. While many credit cards in India have interest rates soaring up to 40-45% per annum, a low-interest card brings that number down significantly, sometimes even into the single digits or low 20s. This might sound like a small difference, but over time, it can save you a mountain of money.

These credit cards with low interest rates are particularly useful if you tend to revolve your credit. Revolving credit means you don't pay your entire bill by the due date, carrying a balance forward. When you do that, the bank charges interest on the unpaid amount from the transaction date itself. That’s why having a low-interest-rate card becomes a financial superpower!

Why Should You Care About Low Interest?

Let's be real, nobody enjoys paying extra. High interest rates on credit cards can quickly turn a small outstanding amount into a burden. It's like a leaky tap, slowly but surely draining your hard-earned money.

Here's why chasing those low-interest cards is a no-brainer:

• Savings, Sweet Savings: This is the most obvious one. With a lower APR, the finance charges on your outstanding balance are significantly reduced. Imagine saving ₹1,000 to ₹10,000 annually just by picking the right card. That's a weekend getaway or a fancy dinner sorted!
• Reduced Financial Stress: Constantly worrying about mounting interest can be stressful. Low-interest cards offer a safety net, making it less painful if you occasionally carry a balance. It's about peace of mind, not just pennies.
• Faster Debt Repayment: When less of your payment goes towards interest, more goes towards reducing your principal. This means you can pay off your debt faster, getting back to a debt-free life sooner rather than later.
• Better Budgeting: Knowing your interest burden is manageable helps you budget more effectively. You're not constantly fighting against a rapidly growing debt; instead, you're making steady progress.
• Great for Planned Purchases: If you're planning a big purchase and know you'll need a few months to pay it off, a low-interest credit card makes perfect sense. It's like borrowing smart, not just borrowing.

Want to learn how interest quietly accumulates on unpaid cash advances? This detailed credit card interest rates guide can help you stay ahead.

Top 5 Low Interest Credit Cards in India (June 2025 Edition)

Finding the best low-interest credit cards means digging into the numbers and seeing which ones actually deliver. We've scoured the market to bring you cards that offer competitive rates without compromising on benefits. Here are some of the top contenders in India for June 2025:

Credit Card	Annual Percentage Rate (APR)	Key Feature	Annual Fee
IDFC FIRST Wealth Credit Card	8.5% to 46.2% p.a.	Lifetime free, low forex markup, 10X rewards	₹0 (Lifetime Free)
Axis Bank Burgundy Private Credit Card	19.56% p.a.	Zero forex markup, unlimited lounge access	₹50,000 (Nil for Burgundy Private Customers)
HDFC Infinia Credit Card Metal Edition	23.88% p.a.	Unlimited lounge, 10X rewards via SmartBuy	₹12,500 (waived on ₹10 Lakh spend)
HDFC Diners Club Black Credit Card	23.88% p.a.	Unlimited lounge, up to 33% value back	₹10,000 (waived on ₹5 Lakh spend)
Axis Magnus Credit Card	42.58% p.a.	High reward points, low forex markup	₹12,500 (waived on ₹25 Lakh spend)

Disclaimer: Interest rates and fees are subject to change by the issuing bank. It's always a good idea to confirm the latest details with the bank directly before applying.

Let's dive a bit deeper into what makes these low-interest-rate cards stand out:

1. IDFC FIRST Wealth Credit Card

This is a fantastic option if you want a premium card that's surprisingly easy on your wallet. It's a lifetime free card packed with benefits and competitive interest rates, making it one of the best low-interest credit cards.

• Low Interest Rate: Interest rates range from a super-low 0.71% per month (8.5% p.a.) to 3.85% per month (46.2% p.a.), depending on your credit profile. This dynamic rate can be incredibly beneficial.
• Lifetime Free: No joining fee, no annual fee. This means more money stays in your pocket right from the start.
• High Rewards: Earn 3X rewards on online and offline spends up to ₹20,000 per month, and a whopping 10X rewards on incremental spends above ₹20,000 and on birthday spends.
• Travel Perks: Get 2 complimentary domestic airport spa and lounge visits and 2 complimentary international lounge visits per quarter.
• Low Forex Markup: A low forex markup fee of 1.5% makes international transactions lighter on your wallet.
• Who it's for: Individuals seeking an all-rounder, lifetime free card that offers premium benefits, excellent rewards, and a potentially very low interest rate for managing their credit efficiently. Ideal for those with good low-interest credit card habits and can spend ₹20,000+ monthly.

2. Axis Bank Burgundy Private Credit Card

Designed for high-net-worth individuals, this card offers a low interest rate for its segment along with a plethora of luxury perks. If you're a Burgundy Private customer, the fee is even waived!

• Competitive Interest Rate: It boasts a very attractive interest rate of 1.5% per month (19.56% p.a.), which is quite low for a super-premium card.
• Zero Forex Markup: This is a huge win for frequent international travellers, as you pay no extra charges on foreign currency transactions.
• Unlimited Lounge Access: Enjoy unlimited lounge access at international and domestic airports for both primary and add-on members, plus 12 free guest visits each.
• Exclusive Memberships: Complimentary Club Marriott, Accor Plus, and Taj Epicure memberships elevate your lifestyle.
• Who it's for: High-net-worth individuals, especially Axis Bank Burgundy Private customers, who frequently travel and seek unparalleled luxury, zero forex fees, and a favourable interest rate.

3. HDFC Infinia Credit Card Metal Edition

An invite-only, super-premium card from HDFC Bank, the Infinia offers a balanced mix of top-tier benefits and a decent interest rate for its class. It's a powerhouse for high spenders.

• Consistent Interest Rate: A standard rate of 1.99% per month (23.88% p.a.) makes it a reliable choice among premium cards, especially for those with a strong credit history.
• Exceptional Rewards: Earn 5 reward points per ₹150 spent, with up to 10X reward points on travel and shopping through HDFC Bank’s SmartBuy platform.
• Unlimited Lounge Access: Both primary and add-on cardholders get unlimited domestic and international lounge access.
• Luxury & Travel Perks: Exclusive benefits at ITC Hotels, complimentary Club Marriott membership, and a low forex markup fee of 2% enhance its appeal.
• Who it's for: Select HDFC Bank customers with high spending potential who value comprehensive travel, lifestyle, and shopping benefits combined with a predictable interest rate.

4. HDFC Diners Club Black Credit Card

Another premium offering from HDFC, the Diners Club Black is known for its high value-back and a competitive interest rate. It’s a popular choice for its broad range of benefits.

• Favourable Interest Rate: Like the Infinia, it charges 1.99% per month (23.88% p.a.), making it one of the credit cards with low interest rates in the premium segment.
• High Value-Back: Offers up to 33% value-back on SmartBuy spends and 3.33% on regular retail spends.
• Global Lounge Access: Unlimited airport lounge access worldwide for both primary and add-on users.
• Lifestyle Memberships: Complimentary annual memberships for Club Marriott, Times Prime, Amazon Prime, MMT BLACK Elite Tier, and Swiggy One on meeting spend criteria.
• Who it's for: High spenders who can leverage the SmartBuy platform, appreciate luxury perks, and need a reliable card with a controlled interest rate for occasional balance carries.

5. Axis Magnus Credit Card

While the Axis Magnus Credit Card has a relatively higher interest rate compared to others on this "low interest" list, its immense reward potential and benefits often offset this for the right user. It's a top choice for affluent travellers.

• High Reward Potential: Earn 12 EDGE reward points for every ₹200 spent up to ₹1.5 Lakh per month, and a massive 35 EDGE reward points per ₹200 on spends above this threshold. Travel EDGE portal spends can give up to 60 EDGE points per ₹200.
• Low Forex Markup: A competitive 2% forex markup fee, which is beneficial for international transactions.
• Unlimited Lounge Access: Unlimited complimentary international lounge visits with Priority Pass and domestic lounge visits on meeting spend criteria.
• Travel and Lifestyle: Exclusive offers at international Oberoi & Trident hotels make it appealing for luxury travel.
• Who it's for: High-spending individuals, especially frequent travellers, who can maximise the accelerated reward points and are less concerned about carrying a balance, or who clear their dues in full. While its APR is higher than some others on this list, its overall value proposition makes it a popular choice.

How to Pick the Right Low-Interest Card for You

Choosing the right low-interest card isn't just about picking the one with the lowest APR. It's about finding the perfect fit for your spending habits and financial goals. Here’s how to do it smart:

• Assess Your Spending Habits: Do you usually pay your bill in full, or do you often carry a balance? If you’re the latter, the interest rate is paramount. If you're the former, then rewards and benefits might be more important.
• Check Annual Fees and Other Charges: Some low-interest cards might have higher annual fees. Calculate if the savings from the low interest rate outweigh these fees. Also, look at other charges like cash advance fees or late payment penalties.
• Consider Your Credit Score:Credit cards with low interest rates are usually offered to individuals with a strong credit history and a good credit score (typically 750+). If your score isn't there yet, focus on building it first.
• Look Beyond Just Interest: While interest is key, also consider other features like reward points, cashback, lounge access, or fuel surcharge waivers. These can add significant value. For example, some low-interest credit cards with rewards offer great value back on your spending.
• Read the Fine Print: Seriously, don't skip this. Understand how interest is calculated, what constitutes an interest-free period, and any hidden clauses.
• Compare, Compare, Compare: Use online comparison tools. Don't just settle for the first option you see. There are many good low-interest credit cards out there, so take your time.

Keeping Your Interest Low: Smart Habits

Even with the best low-rate credit card, smart financial habits are your real secret weapon. A low interest rate doesn't give you a free pass to overspend.

• Pay on Time, Every Time: This is the golden rule. Even if you can't pay the full amount, always pay at least the minimum amount due by the deadline. This avoids late payment fees and protects your credit score.
• Pay More Than the Minimum: If you carry a balance, try to pay more than just the minimum amount due. This helps reduce your principal faster and thus, the interest charged.
• Understand Your Billing Cycle: Know your statement date and payment due date. The interest-free period is typically between these two dates, provided you clear your previous month's balance in full.
• Avoid Cash Advances: Cash advances come with steep fees and interest that starts accruing immediately. They are almost never a good idea.
• Monitor Your Spending: Keep an eye on your credit card statements and app. Early detection of any discrepancies or overspending can save you from a headache later.
• Don't Max Out Your Card: High credit utilisation (using a large portion of your available credit) can negatively impact your credit score and sometimes even affect your interest rate with some banks. Aim to keep your utilisation below 30%.

Conclusion

Navigating the world of credit cards can feel a bit like a high-stakes game, but with the right low-interest credit cards in your arsenal, you're always one step ahead. These cards aren't just about reducing your financial burden; they're about empowering you to manage your money smartly, providing a safety net when life throws a curveball, and helping you achieve your financial goals without unnecessary stress.

Whether you're looking for credit cards with low interest rates and no annual fees, something with great rewards, or a premium card that doesn't sting on interest, there’s a perfect match out there. Remember, the trick isn't just finding a low-interest card; it's also about building smart spending habits. So, go ahead, pick your champion, and enjoy the financial freedom that comes with being a savvy cardholder!

Ready to find the perfect credit card that fits your financial style? Check out Finology Select to compare and choose from a wide range of credit card options tailored for you.

Want to know why your credit card debt grows faster than expected? Read what is credit card APR and how it affects cash withdrawals and repayments.

FAQs

1. What is a "low-interest credit card" in India?

A low-interest credit card in India is one that charges a significantly lower Annual Percentage Rate (APR) on your outstanding balance compared to typical credit cards. While standard cards might charge 35-45% p.a., low-interest cards can range from 9-30% p.a., saving you money on finance charges.

2. Are low-interest credit cards good for beginners?

Yes, low-interest credit cards for beginners can be a great option. They offer a safety net if you occasionally carry a balance, making the learning curve of managing credit less painful. Cards like the IDFC FIRST Wealth, with no annual fees and low interest, are excellent starting points.

3. Do low-interest cards offer rewards?

Absolutely! Many low-interest credit cards with rewards exist. While their primary focus is on low interest rates, many also offer decent reward programs, cashback, or other perks. You don't always have to choose between low interest and rewards.

4. Can I get a low-interest credit card with no annual fees?

Yes, definitely. Cards like the IDFC FIRST Wealth Credit Card are lifetime free and come with very competitive low interest rates. This combination is ideal for those who want to minimise costs while still having the flexibility of a credit card.

5. How do banks decide my credit card interest rate?

Banks typically determine your credit card interest rate based on your creditworthiness. This includes your credit score, payment history, income, and overall financial stability. The better your credit profile, the more likely you are to qualify for lower interest rates.

6. What happens if I pay only the minimum amount due on a low-interest card?

If you only pay the minimum amount due, interest will still be charged on the remaining outstanding balance from the date of the transaction. However, with a low-interest card, the amount of interest charged will be less compared to a high-interest card, making it more manageable.