Synopsis: Credit cards with low annual fees often turn out to be more valuable in savings. Many cards in the ₹500 to ₹1,500 fee range offer benefits such as fuel surcharge waivers, lounge access, cashback, and reward points. Let us check these five credit cards in India that balance affordability with useful everyday rewards.
Credit cards with low annual fee strike a good balance between credit and rewards. There are many banks in India now that offer cards with fees between ₹500 to ₹1,500 and still provide attractive benefits such as cashback, reward points, fuel surcharge waivers, and discounts on shopping or travel.
Those users who want more perks than entry-level cards but do not want to pay high annual fees can find these cards to be a wise option. Here is a closer look at five credit cards that are affordable and offer attractive rewards and benefits.
1. HPCL IDFC FIRST Power+ Credit Card
- Joining Fee: ₹499
- Annual Fee: ₹499
- Annual Fee Waiver: On annual spends of around ₹1.5 lakh
- Forex Markup: 3.50%
Benefits
- Welcome gift that is worth ₹2500
- Low APR starting from 8.5% per year
- 0% Interest rate on ATM Cash Withdrawals till the due date
- 3X Reward points on UPI spend and other retail transactions
- Savings of up to 8.83% on hotel & flight bookings via IDFC FIRST Mobile App
- 5% savings as Rewards on Grocery & Utility expenses
- Up to 6.5% savings on your fuel expenses
- ₹500 worth Gift Voucher on HPCL fuel transaction of ₹500 or above as a welcome gift
- Complimentary 1 Domestic Airport Lounge access each quarter (min monthly spends of ₹20,000 required to unlock)
- Complimentary Roadside Assistance worth ₹1,399
- 25% off on movie tickets up to ₹100, once every month
Premium Benefits
The card offers welcome benefits along with complimentary lounge access; these kinds of privileges are mostly present in above medium-tier credit cards. The card also provides insurance coverage and discounts on other purchases.
2. Airtel Axis Bank Credit Card
- Joining Fees: ₹500
- Annual Fees: ₹500
- Annual Fee Waiver: On annual spends of around ₹2 lakh
- Forex Markup: 3.5%
Benefits
- Amazon eVoucher worth ₹500 on making the first transaction within 30 days
- 25% cashback on Airtel mobile, broadband and DTH payments through the Airtel Thanks app (capped at ₹250 per statement)
- Up to 10% cashback on utility bill payments via select partners. (capped at ₹250 per statement)
- 10% cashback on Swiggy, Zomato, and BigBasket transactions (capped at ₹500 per statement)
- 1% cashback on all other spends
- 1% fuel surcharge waiver across fuel stations in India.
- 4 domestic airport lounge visits are complimentary each year
Premium Benefits
The card offers an attractive rate of cashback in digital services, food delivery, and bill payments. Most credit cards, even the premium ones, sometimes don’t offer cashback on utility bill payments. Thus, with this low fee and the benefits offered are a plus.
3. ICICI Bank Coral Credit Card
- Joining Fee: ₹500 + tax
- Annual Fee: ₹500 + tax
- Annual Fee Waiver: On a total annual spend of ₹1.5 lakh
- Forex Markup: Around 3.5%
Benefits
- 1 complimentary domestic airport lounge visit per quarter
- 4 complimentary railway lounge access per year
- 2 reward points granted on each ₹100 spent (retail purchases)
- 1 reward point on Utility and Insurance Spend
- 1% fuel surcharge waiver on transactions between ₹400 – ₹4,000
- Dining discounts through the ICICI Bank culinary programme
- 25% off or up to ₹100 discount on BookMyShow movie tickets twice every month.
Premium Benefits
The card offers benefits that are a combination of travel, entertainment, and dining experiences. Thus, the combined benefit pushes the overall value of the credit card with p; aired with its low annual and joining fees. This card is a wise choice for individuals who frequently travel by train or enjoy entertainment discounts.
Also Read: Top 5 IndiGo Credit Cards in India: Which Card Gives the Best BluChips Value?
4. Axis Bank ACE Credit Card
- Joining Fee: ₹499
- Annual Fee: ₹499
- Annual Fee Waiver: On annual spend of ₹2 lakh
- Forex Markup: Around 3.5%
Benefits
- 5% cashback on bill payments through the Google Pay platform
- 4% cashback on Swiggy and Zomato transactions
- 1.5% cashback on all other spends
- 1% fuel surcharge waiver on fuel transactions between ₹400 and ₹5,000
- 4 complimentary domestic airport access per year
Premium Benefits
The card offers simple and direct cashback across multiple everyday categories. The best catch of this credit card is not only its low annual fee but the simple cashback process, which is oftentimes instant.
5. SBI SimplyCLICK Credit Card
- Joining Fees: ₹499 + tax
- Annual Fees: ₹499 + tax
- Annual Fee Waiver: On annual spend of ₹1 lakh
- Forex Markup: 3.5%
Benefits
- ₹500 Amazon gift card as a welcome benefit after paying the joining fee.
- 10X reward points on online purchases with partner brands such as BookMyShow, Cleartrip, Myntra, Netmeds, and Domino’s.
- 5X reward points on other online transactions.
- 1 reward point per ₹100 spent on other categories.
- 1% fuel surcharge waiver on transactions between ₹500 to ₹3,000
- Milestone rewards of eVouchers worth ₹2,000 each on reaching annual online spends of 1 Lakh and 2 Lakh, respectively. e-Voucher Brand: Cleartrip and Yatra
Premium Benefits
The card is particularly suited for regular online shoppers as it rewards e-commerce spending with higher reward multipliers.
Quick Comparison of Low-Fee Premium Credit Cards
Things to Consider Before Choosing a Low-Fee Credit Card
Even if the annual fee is low, users should still consider a few key factors before selecting a card:
- Spending categories: The first applicant should list out all the expenses and then find out which expense is the most frequent one. Thus, opt for a card that rewards your most common expenses.
- Fee waiver condition: Some cards waive annual fees after certain spending levels, and some do after spending under a specific timeline.
- Redemption: It is also one of the important aspects to check before getting the card, as sometimes, because of redemption fees, the reward value itself decreases.
- Additional perks: Other benefits like lounge access and insurance with a low fee further increase the value of the card.
Conclusion
Low annual fee credit cards still offer premium-like benefits if used properly. Cards such as the Airtel Axis Bank Credit Card and Axis ACE Credit Card focus on cashback and everyday digital spending, and the HPCL IDFC FIRST Power+ Credit Card provides strong rewards for fuel and utility payments.
Meanwhile, the ICICI Coral and SBI SimplyCLICK cards deliver lifestyle and online shopping benefits. Thus, going for a card that aligns with your personal spending habits, you can maximise rewards.
