Credit cards have become essential financial tools for modern Indian consumers, offering a wide range of benefits from cashback and reward points to discounts on shopping and dining. However, many people hesitate to get credit cards due to the annual fees associated with them. The good news is that several credit cards in India charge minimal or no annual fees while still providing substantial benefits.
Understanding Credit Card Annual Fees
Most credit cards come with an annual fee that varies according to the features and benefits they offer. Typically, cards with more premium benefits charge higher annual fees. However, the Indian financial market now offers several credit cards that either charge no annual fee or keep it below ₹1,000 while still providing valuable rewards and cashback opportunities.
The fundamental rule is simple: the more benefits a card offers, the higher its annual fee tends to be. Fortunately, many banks now waive these fees if you meet certain spending thresholds, making these cards even more affordable for regular users.
Top Credit Cards With Annual Fees Under ₹1000
Amazon Pay ICICI Credit Card
This popular credit card stands out by charging no joining or annual fee. It features a low foreign exchange markup fee of just 1.99%, making it excellent for international transactions. Both Prime and non-Prime members can benefit from this card, which offers unlimited earnings and high reward points. The most attractive feature is that the reward points never expire and have no upper limit.
Flipkart Axis Bank Credit Card
With an annual fee of ₹500, this card provides excellent value for Flipkart shoppers. The annual fee is waived from the second year if your annual spending exceeds ₹3.5 lakh. Cardholders enjoy 7.5% cashback on Myntra purchases, capped at ₹4,000 per statement quarter. Additionally, you get a 1% fuel surcharge waiver on fuel purchases across all petrol stations nationwide.
SBI Cashback Credit Card
This card charges an annual fee of ₹999 plus applicable taxes. The renewal fee is reversed if your annual spending crosses ₹2 lakh in the preceding year. It offers an impressive 5% cashback on all online spends without merchant restrictions, along with 1% cashback on offline transactions, making it ideal for frequent online shoppers.
IDFC FIRST Millennia Credit Card
This is a lifetime free credit card, meaning you pay no joining or annual fees whatsoever. It provides a straightforward banking experience without the worry of recurring charges, making it perfect for those who want credit card benefits without the financial commitment of annual fees.
Axis Bank ACE Credit Card
Priced at an annual fee of ₹499, this card waives the fee from the second year if annual spending exceeds ₹2 lakh. It offers 5% cashback on utility bill payments including electricity, internet, and gas bills. Cardholders also receive four complimentary lounge visits per calendar year, adding significant value for frequent travelers.
HDFC MoneyBack+ Credit Card
This card has an annual fee of ₹500 plus taxes, which is waived if annual spending exceeds just ₹500. It provides 10X cashpoints on popular platforms including Amazon, Flipkart, Swiggy, Reliance SmartSuperStore, and BigBasket. For other expenses, cardholders earn 2 cashpoints for every ₹150 spent.
Making the Right Credit Card Choice
When selecting a credit card, it's crucial to consider your spending patterns and compare them with the benefits offered. Always read the terms and conditions carefully to understand spending requirements for fee waivers and the actual value of reward programs.
Remember that while credit cards offer convenience and rewards, they come with responsibilities. High interest rates and hidden charges can negate the benefits if not managed properly. It's always advisable to pay your credit card bills in full and on time to avoid interest charges and maintain a healthy credit score.
Consult with financial experts if you're unsure about which credit card suits your needs best, and always use credit responsibly to maximize benefits while minimizing costs and risks.
