Top 5 Low Interest Credit Cards in India in 2026

Credit card usage in India is booming, soaring from 5.53 crore in 2019 to 10.80 crore by December 2024, according to a Press Trust of India report. With credit growth more than doubling in just five years, picking the right card has never been more crucial. Low-interest credit cards are emerging as a smart choice, helping you save on borrowing costs while managing balances efficiently. 

Whether it is for everyday spending or emergency expenses, the right low-interest card can make your financial journey smoother and more cost-effective, giving you control without the stress. So, keep reading to know everything in detail.

Top 5 Low-Interest Credit Cards in India in 2026

Other Standout Features of Low Interest Credit Cards

1.  IDFC FIRST Wealth Credit Card

• Free movie tickets every month through the Zomato app.
• 2 complimentary airport lounge visits each quarter in India and abroad.
• 4 free railway lounge visits per quarter with meals, Wi-Fi, and seating.
• Free roadside help up to 4 times a year (towing, tyre change, fuel supply).
• Free insurance covers purchase protection, fraud protection, and travel insurance.

2.  YES Bank Reserv Credit Card

• 8,000 bonus reward points from the second year onwards.
• Low 1.75% foreign currency markup on international use.
• Free access to airport lounges in India and abroad.
• Purchase protection cover up to ₹50,000 for electronics bought online.

3.  Kotak Privy League Signature Credit Card

• Access to airport lounges via Priority Pass.
• 6,400 bonus reward points every quarter.
• Waiver on fuel surcharge at all pumps in India.
• Concierge services for hotel booking, flight tickets, and event reservations.

4.  SimplySAVE Advantage SBI Card

• 10x reward points on dining, groceries, movies, and departmental stores.
• 500 bonus reward points on spends of ₹1,000 in the first 30 days.
• 1% fuel surcharge waiver at petrol pumps in India.
• Annual fee reversal on yearly spends above ₹1,00,000.

5.  HDFC Regalia Credit Card

• Free Swiggy One and MMT Black Gold membership as welcome perks.
• Up to ₹10,000 flight vouchers on milestone spends.
• 5X reward points on Myntra, Nykaa, Reliance Digital, and M&S.
• Free lounge access at 1,000+ airports worldwide.
• Insurance covers up to ₹1 crore with travel and purchase protection.

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What Are the Benefits and Drawbacks of Low-Interest Credit Cards?

Benefits

1. Most of these cards come with a lower fee. In some cases, the bank removes the cost if you spend a fixed amount in a year.
2. These cards carry a lower interest rate. If you cannot pay the full bill, the extra cost remains small.
3. The annual percentage rate stays low even after the first offer period. This helps in long-term savings.
4. You can use these cards to clear old card debt. This allows you to cut extra charges.

Drawbacks

1. These cards do not offer many perks like cashback, discounts, or air miles.
2. Banks often give them to people with high incomes or strong credit scores.
3. If you shift the balance from another card, the bank adds a fee.
4. Though the card has low interest rates, cash advances come with heavy charges.

4 Things to Consider Before Applying for a Low-Interest Credit Card

1. Fees and Charges: Look at annual fees, late payment charges, cash advance fees, and foreign transaction costs. A card with a small fee but lower APR can save more than a zero-fee card with high rates.
2. Rewards and Benefits: Match rewards with your spending habits. Travel, fuel, dining, or online shopping cards offer value only if you use them often.
3. Eligibility and Credit Score: Banks give the best low APR cards to those with high credit scores. Improve your score before applying to get lower interest rates and better perks.
4. Smart Usage: Avoid cash advances, limit balance transfers, and convert big spends to EMIs at lower rates. Careful planning ensures maximum savings.

💡For your bill payments and tracking business transactions, use the PICE App.

Eligibility Criteria to Apply for a Low-Interest Credit Card

Banks usually offer these cards to HNIs and people with strong credit scores.

This is how you can achieve a strong credit score:

• Pay credit card bills and EMIs on time.
• Keep a healthy mix of secured and unsecured loans for a balanced profile.
• Check your credit report often and work on improving it.

Once your score is high, you can request your bank for a low-interest credit card.

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Conclusion

Low interest credit cards are an excellent choice for anyone looking to save on borrowing costs while managing finances efficiently. They help reduce debt pressure, keep monthly expenses manageable, and make it easier to handle emergencies without high-interest burdens. 

With credit card usage growing rapidly in India, these cards offer real value when used responsibly. To maximise benefits, always plan your spending, pay bills on time, and maintain discipline. Smart use of low-interest credit cards can significantly support long-term financial health and stability.

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