Low-interest-rate credit cards are ideal for those who prefer to carry a balance on their credit cards or plan to make expensive purchases. Typically, interest rates between 1.5% and 2.99% per month are considered low. Here’s a breakdown of the key options, advantages, disadvantages, and frequently asked questions.

Best Low-Interest Credit Cards in 2025

• SimplySAVE Advantage SBI Card
• Interest Rate: 2.5% per month
• Joining Fee:499

• Features:

  • Earn Cash Points for every100 spent.
  • Up to 2.5% value back on grocery and departmental store purchases.
  • 50 days of interest-free credit.

• HDFC Infinia Credit Card

• Interest Rate: 2.5% per month
• Joining Fee:30,000

• Features:

  • No preset spending limit.
  • Earn 5 Reward Points per150 spent.

• SBI Prime Advantage Credit Card

• Interest Rate: 1.99% per month
• Joining Fee:2,999

• Features:

  • Earn 10 Reward Points on dining, international, and departmental store spends.

• SBI Advantage Plus Credit Card

• Interest Rate: 2.25% per month
• Joining Fee:500

• Features:

  • 50-day interest-free credit period.

• HDFC Regalia Credit Card

• Interest Rate: 3.6% per month
• Joining Fee:2,500

• Features:

  • Welcome benefit of 2,500 Reward Points.

• HSBC LIVE+ Credit Card

• Interest Rate: Variable
• Joining Fee: None
• Features:
  • Zero liability on lost cards.
  • Renewal fee waiver for annual spending over1 lakh.

Advantages of Low-Interest Credit Cards

• Savings on Interest: Lower interest means reduced monthly charges on carried-over balances.
• Low Annual Fees: Many low-interest cards offer reasonable or waived fees if spending thresholds are met.
• Debt Management: Helps in paying off existing credit card debt efficiently.
• Lower APR: Ensures continued lower interest even after promotional periods.

Disadvantages of Low-Interest Credit Cards

• Limited Perks: Fewer cashback or reward programs compared to premium cards.
• Eligibility Constraints: Reserved for high-net-worth individuals (HNIs) or those with excellent credit scores.
• Balance Transfer Fees: Charges on transferring debts from other cards.
• High Cash Advance Rates: Interest on cash advances is often higher than regular purchases.

Who Should Apply for Low-Interest Credit Cards?

• Individuals with a credit score of 750+.
• Those who frequently carry forward balances or plan large purchases.
• High-income earners or HNIs seeking manageable debt options.

FAQs on Low-Interest Credit Cards

1. Can I save more with a low-interest credit card?
- Yes, you save significantly on interest charges when carrying forward balances.

2. How do I apply for a low-interest rate credit card?
- Maintain a good credit score (750+), ensure timely bill payments, and approach your bank with your request.

3. Do low-interest credit cards have higher fees?
- No, these cards generally have lower or moderate fees based on the card type and your credit profile.

4. What is the interest rate of the HDFC Regalia Credit Card?
- The HDFC Regalia Credit Card offers an interest rate of 3.6% per month and a cash advance fee of 2.5%.

5. Does the HDFC Infinia Credit Card have a low interest rate?
- Yes, the HDFC Infinia Credit Card charges 2.5% per month on both purchases and cash advances.

Pro Tip:

Before choosing a card, compare interest rates, fees, and benefits across multiple providers to select one that best suits your spending habits and financial goals. Always aim to clear your credit card dues in full each month to avoid interest charges altogether!

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