Synopsis: Nowadays, while most premium credit cards offer decent benefits across various categories, they usually charge a very high annual fee. However, there are several low annual fee credit cards available in the market that offer excellent benefits through rewards, cashback, and discounts, all with an annual fee that is within ₹500.
When used responsibly, credit cards can turn out to be a useful tool that allows you to spend less on everyday things. People often think that only high-end or costly credit cards can provide huge perks. However, that’s not necessarily the case.
A credit card that charges annual fees below ₹500 may give good rewards in terms of cashback for purchases made on a regular basis, such as grocery items, food delivery services, fuel costs, shopping, UPI payments, and electricity bills. Such affordable cards can yield substantial benefits without draining your pockets.
Best Cashback Credit Cards Under ₹500 Annual Fee
Axis Bank ACE Credit Card
The Axis Bank ACE Credit Card has become one of the most sought-after entry-level cashback cards in India, especially amongst young professionals and Google Pay users.
- Membership Fee: ₹499
- Annual Fee: ₹499 (no fee for spends above ₹2 lakhs annually)
- Interest Rate: 3.75% monthly interest rate
- Cashback Scheme:
- 5% cashback when paying bills & making mobile/DTH payments through Google Pay
- 4% cashback on Swiggy, Zomato, and Ola spends
- 1.5% cashback on all other spends
- Combined cap of ₹500 per month on 5% and 4% categories
- Best Fit For: People who often make payments for utilities via Google Pay and use Swiggy, Zomato, or Ola. It should be noted that those who own iOS cannot make use of the 5% cashback provided by Google Pay, making this card less attractive for iPhone users.
To apply for the card, please visit the Official Website
Flipkart Axis Bank Credit Card
The Flipkart Axis Bank Credit Card is intended for consumers who make many purchases on Flipkart, Myntra, and other associated websites.
- Annual Charge: ₹500
- Monthly Charge: ₹500 (no fee for yearly spending of ₹3.5 lakhs)
- Interest Rate: 3.75% monthly interest rate
- Cashback Rewards System:
- 7.5% cashback on Myntra (cap of ₹4,000 per quarter)
- 5% cashback on Flipkart and Cleartrip (cap of ₹4,000 per quarter per retailer)
- 4% uncapped cashback on favored merchants (Swiggy, Uber, PVR, Cult.fit)
- 1% uncapped cashback on other qualified merchants
- Best Suited For: Those who frequently shop on both Flipkart and Myntra and also order from Swiggy. The card suits individuals who make large purchases during sales and are able to clear the ₹3.5 lakh spending requirement to waive off fees.
To apply for the card, please visit the Official Website
Swiggy Ornge HDFC Bank Credit Card
This card, HDFC Swiggy Orange Credit Card (alternatively called Swiggy Ornge), has been designed specifically for individuals who love ordering food delivery services online.
- Joining Fee: ₹500
- Annual Fee: ₹500 (waived on annual spends of ₹1.5 lakh)
- Interest Rate: 3.75%
- Cashback Structure:
- 5% cashback on transactions through the Swiggy app (Food delivery, Instamart, and Dineout) above ₹249, up to ₹1,500 monthly limit
- 5% cashback on selected online transactions (clothing, gadgets, beauty products, travel sites, and entertainment channels including Amazon, Flipkart, Myntra, and Netflix), up to ₹1,500 monthly limit
- 1% cashback on other transactions exceeding ₹100 monthly limit of ₹1,000
- Best Suited For: People who make heavy use of Swiggy for ordering food as well as online shopping. The easy-to-achieve waiver of ₹1.5 lakhs per annum makes it attractive for average spenders. Best for people who could leverage the Swiggy One membership benefits.
To apply for the card, please visit the Official Website
Also read: Amex Platinum Reserve vs Axis Horizon: Which Premium Card Gives You Better Travel Rewards?
HSBC RuPay Cashback Credit Card
The HSBC RuPay Cashback Credit Card is unique among low-cost credit cards in that it provides airport lounge access for both domestic and international lounges.
- Joining Charge: ₹499
- Yearly Charge: ₹499 (waived in case of annual spends above ₹2 lakhs)
- Interest: 3.75% per month
- Cashback Structure:
- 10% cashback on dining, food delivery, and grocery spends
- 1% cashback on all other eligible spends, including UPI transactions
- Combined monthly cap of ₹400 for all categories
- Best Suited For: People using UPI for spending and wanting to get cashback from their digital transactions, along with lounge access for international flights. The fact that it offers international airport lounge access makes it unique considering it comes with a yearly charge of ₹499.
Kiwi Credit Card
Kiwi Credit Card is an entirely virtual RuPay credit card that is offered for life-time free with the help of collaboration between the issuer banks like Yes Bank, AU Small Finance Bank, and PNB.
- Joining Charges: ₹0 (Life-time free)
- Annual Charges: ₹0 (Life-time free)
- Interest Charges: Depending upon the issuing bank (~3.5-3.75% per month)
- Cashback Structure (Base Card):
- 1.5% cashback for Scan and pay UPI transaction through Kiwi application
- 0.5% cashback for online/offline spends
- Cashback credited in form of “Kiwis” (4 Kiwis= ₹1)
- Best Suited For: Frequent users of the UPI system who conduct multiple low-value transactions at nearby stores and vendors who do not accept normal credit card payments. Ideal for first-time users of the credit card service who desire a zero-cost alternative.
To apply for the card, please visit the Official Website
Comparison Table
Conclusion
Before choosing, compare annual fees, cashback caps, and your actual spending patterns across categories. Calculate which card delivers maximum returns based on where you spend the most. The right card aligns with your lifestyle and maximizes savings on everyday expenses.
Written by Shrikara
