Not everyone needs a premium or high-fee credit card. Many people want a simple, affordable card that offers cashback, rewards, and essential features without paying ₹2,000–₹5,000 yearly fees. In 2025, several Indian banks offer low annual fee credit cards packed with excellent benefits like online shopping rewards, lounge access, dining discounts, and fuel savings.
This article lists the top low-fee and zero-fee credit cards in India and explains how to choose the right one based on your lifestyle and spending habits.
1. Why Choose a Low Annual Fee Credit Card?
Low-fee cards are ideal for beginners, students, salaried professionals, and people who want value without high charges. They offer:
✔ Low or Zero Yearly Fee
Pay ₹0–₹500 per year and still enjoy premium benefits.
✔ Good Cashback on Online Spending
Many low-fee cards offer 2–5% cashback on popular platforms.
✔ Fuel Surcharge Waivers
Useful for daily commuters.
✔ Bill Payment Discounts
Electricity, DTH, gas and broadband bills fall under cashback categories.
✔ Easy Approval
Faster approval for new-to-credit applicants.
If you’re new to credit cards or want savings without commitments, these cards are perfect.
2. Best Low Annual Fee Credit Cards in India (2025 List)
Here are the most rewarding cards that offer great value with minimal or no yearly cost.
1. Amazon Pay ICICI Bank Credit Card
Annual Fee: ₹0 (Lifetime Free)
Best For: Online shopping & Amazon users
Benefits:
- 5% cashback for Amazon Prime members
- 3% cashback for non-Prime
- 2% cashback on partner brands
- 1% cashback on everything else
- No hidden fees
Why it’s great:
It’s a true lifetime free card with high cashback. Perfect for Indian online shoppers.
2. Axis Bank ACE Credit Card
Annual Fee: ₹499 (waived on ₹10,000 monthly average spend)
Best For: Bill payments, food delivery & Ola rides
Benefits:
- 5% cashback on electricity, gas, water, DTH & mobile
- 4% cashback on Swiggy, Zomato, Ola
- 2% cashback on other spends
Why users love it:
One of the best bill payment cards in India. Savings are guaranteed every month.
3. HDFC MoneyBack+ Credit Card
Annual Fee: ₹500
Best For: Online shopping
Benefits:
- 4X reward points on Amazon, Flipkart, BigBasket
- 2X rewards on all online payments
- Fuel surcharge waiver
Why it’s valuable:
Great card for beginners who prefer online spending and want good rewards.
4. Flipkart Axis Bank Credit Card
Annual Fee: ₹500
Best For: Shopping on Flipkart, Myntra, and Cleartrip
Benefits:
- 5% cashback on Flipkart & Myntra
- 4% on preferred partners
- 1.5% on everything else
Why it’s profitable:
Top choice during major sale events like Big Billion Days.
5. IDFC First Classic Credit Card
Annual Fee: ₹0 (Lifetime Free)
Best For: First-time users who want an all-rounder card
Benefits:
- Zero annual fee
- Reward points on every spend
- Fuel surcharge waiver
- Low interest rate compared to most cards
Why it stands out:
A powerful lifetime free card with generous rewards and fewer charges.
6. SBI SimplyClick Credit Card
Annual Fee: ₹499
Best For: Online spenders
Benefits:
- 5X rewards on online shopping
- Extra rewards on Amazon, BookMyShow, Cleartrip
- Annual fee waived at ₹1 lakh yearly spend
Why people choose it:
Smooth approval and strong partner rewards.
7. Paytm HDFC Bank Credit Card
Annual Fee: ₹500
Best For: Paytm users & UPI payments
Benefits:
- Cashback on Paytm Mall and Paytm App
- Extra rewards on UPI
- Welcome cashback points
What makes it special:
Useful for users who rely on Paytm for daily payments.
3. How to Select the Right Low-Fee Credit Card
When choosing, consider these points:
✔ Your major spending category
- Amazon → Amazon Pay ICICI
- Flipkart → Flipkart Axis
- Food delivery → Axis Ace
- Utility bills → Axis Ace
- General use → IDFC Classic
✔ Do you prefer zero maintenance?
Choose lifetime free cards like:
- Amazon Pay ICICI
- IDFC Classic
✔ Monthly spending amount
Most banks waive annual fees if you spend ₹50,000–₹1,00,000 yearly.
✔ Mobile wallet usage
Cards like Paytm HDFC help you save more on UPI and wallet payments.
4. Benefits You Get Even on Low-Fee Cards
Many people think only premium cards offer benefits, but low-fee cards provide:
- Cashback up to 5%
- Online shopping rewards
- Fuel surcharge waivers
- Dining discounts
- Zero-cost EMI options
- Secure transactions
- Welcome bonus points
You can save ₹5,000–₹20,000 per year with correct usage.
5. Common Mistakes to Avoid
✘ Paying minimum due
Always pay full bill to avoid interest charges.
✘ Using the wrong card type
A shopping card won’t give benefits on travel spending.
✘ Ignoring cashback caps
Always check monthly cashback limits to maximize gains.
✘ Random cash withdrawal
Cash withdrawal using credit cards attracts high fees—avoid it.
Final Thoughts
Low annual fee credit cards are perfect for students, salaried individuals, online shoppers, and anyone looking for smart savings without paying a premium. Cards like Amazon Pay ICICI, Axis Ace, Flipkart Axis, HDFC MoneyBack+, and IDFC Classic provide excellent value and are beginner-friendly.
Choosing the right card will help you save more every month, build a good credit score, and enjoy multiple lifestyle benefits at minimal cost.
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