If your credit card has a low rate, then it can be useful to buy expensive things using a credit card. What is a low credit card EMI interest rate? Rates between 2.5% to 4% are often considered low when talking about credit cards.
Let’s discuss the advantages of owning a credit card with low rates and the various credit card interest rates across banking institutions.
Benefits of Low-Interest Credit Cards
Owning a low-interest credit card has many benefits. Here are some of those advantages-
- Enjoy a low annual interest rate – Credit cards with lower interest rates also have a comparatively lower annual rate. This lets people with such credit cards enjoy lower rates post the introductory offer period.
- Save on annual fee- Low-interest cards also offer a low annual fee to their users. Some companies also waive away the annual fee if you have spent a pre-decided amount annually through your card.
- Easier to pay current debt – If you have a low-interest rate on your credit card, then you can use that to pay off your credit card or other debts that may have accumulated. You can do this without having to pay extra interest.
Top Low-Interest Cards (Updated 2022)
- Bajaj Finserv RBL Bank SuperCard
Bajaj Finserv offers different credit cards with different features. It has 17 different varieties that are mostly available at an interest rate of 3.99%. These credit cards have various features such as free movie tickets through BookMyShow, airport lounge access, and 5% cashback through Baja Finserv partner stores when you make down payments.
- HDFC Credit Card
The Infinia Card by HDFC is a card with a cash advance charge and interest rate of 2.5%. The renewal fee is 10,000, and the joining charge is 30,000, which is quite high.
- SimplySAVE SBI Card
SBI SimplySAVE Credit Card has a joining charge of 499 rupees and a 2.5% monthly cash advance charge. This card also has various other features and cash back points for shopping at departmental stores.
- SBI Prime Credit Card
The SBI Prime credit card is available at a low rate of 1.99% per month and a cash advance charge of 3.5% per month. This credit card is for people who often shop at departmental stores or dine out. It has a very high renewal fee and a high joining fee.
Aslo read: Debit Card or Credit Card – Which One to Choose?
- CitiBank credit Card
Citibank’s credit card EMI interest rate is 3.75% per month and 2.5% as cash advance charges. It has no joining fee and has standard features such as reward points.
Banks often risk non-repayment of credit card debt in the case of people who have good CIBIL scores or are HNIs. Banks mostly offer this credit card EMI interest rates to people they believe are eligible for such advantages. Credit cards with lower interest rates are usually only offered to people who have a strong credit score because banks believe they are less risky. Hence, if you want a low-interest rate on your card, then you need to maintain a good credit score.
You can improve your score by paying your dues and EMIs without delay. Your credit score will be favourable if your unsecured and secured debt is balanced. If you have a good credit score, check with an NBFC such as Bajaj Finserv to see if you can avail yourself of a low-interest credit card.
