Credit Card Interest Rates: Nowadays working people are dependent on many attractive low interest offers including credit cards, loan apps to fulfill their needs, but before this, definitely know whether it is a loss-making deal for you or not.

Recently elected US President Donald Trump proposed a 10 per cent cap on credit card interest rates during his 2024 presidential campaign in New York in September 2024. 

It was also said that we cannot allow credit card companies to charge an annual interest rate of 25 to 30 percent. The purpose of Trump's proposal is to provide relief to consumers struggling with the burden of card debt. This debt on consumers in the US has exceeded 1 trillion dollars.

Which banks charge low interest on credit cards in India?

There are only a few banks in India that offer credit cards that charge lower interest rates than others. These cards charge less than 0.75-2% interest per month as compared to conventional credit cards that charge 3-3.5% monthly interest. Such cards target people who find it difficult to pay their bills by the due date every month.

Although paying in full is always the best option, this card offers more affordable options to manage the monthly balance. 

IDFC First Bank offers interest rates on its credit cards like IDFC First Wealth, IDFC First Select, IDFC First Classic and IDFC First Millennia ranging from 0.75 per cent per month (9 per cent per annum) to 2.99 per cent (36 per cent per annum). While deciding the interest rate, the bank checks the card applicant's credit score, annual income, employment status, existing loan details and repayment history. There are no joining and renewal fees for these cards.

Know how much interest Axis Bank charges on which cards?

Axis Bank charges 1.5 per cent interest per month (19.56 per cent per annum) on its Burgundy Private Credit Card. It charges a joining/renewal fee of Rs 50,000 plus GST. However, there is no such fee for Burgundy Private Savings Account holders.

What are the charges on Indusind Bank credit cards?

Indusind Bank charges 1.79 per cent interest per month (21.48 per cent per annum) on its Indulge credit card. Its joining fee is Rs 2 lakh plus GST. The renewal charge is Rs 10,000 plus GST. The bank waives off the renewal fee if the expenditure is Rs 10 lakh or more in the past year.

Similarly, HDFC Bank charges 1.99 per cent interest per month (23.88 per cent per annum) on its Infinia, Infinia Metal, Diners Black Metal, Diners Black, BizzBlack Metal and HOG Diners Club credit cards. The joining/renewal fee for Diners Black Metal card is Rs 10,000 plus GST. For Infinia Metal, the charges are Rs 12,500 plus GST.

What is necessary to do for low interest credit card?

Credit cards with low interest rates are offered to select applicants with strong financial profiles. Usually, only high net worth individuals (HNIs) or people with excellent credit scores qualify for these cards. 

Banks reserve these offers for low-risk borrowers to ensure minimum default. Applicants must maintain a healthy credit history to be eligible for this. 

Apart from this, you will also have to pay your dues on time. By doing this, you will be able to get a low-interest credit card or there will be more chances of it.

Keep these things in mind before taking the card

While choosing a low-interest card, ensure whether you will have to give up benefits like bonus reward points, cashback and special facilities offered by the regular card. Apart from this, also pay attention to the joining and annual fees. Before getting the card, take a good account of your needs.