Credit cards have become an essential financial tool for Indian consumers, offering convenience, rewards, and a safety net for emergencies. However, the annual fee associated with many cards can eat into the benefits you earn. This blog focuses on the best no‑annual‑fee credit cards available in India for 2025, helping you enjoy the perks without the extra cost.
Cost‑effective: You keep 100% of your rewards, cashback, or points because there is no fee to offset.
Low entry barrier: Ideal for students, first‑time card‑holders, and anyone on a tight budget.
Flexibility: You can switch to a fee‑based card later if your spending pattern changes.
Although traditionally a premium card, the Regalia First version waives the annual fee for the first year. It offers 4 reward points per ₹150 spent, lounge access at select airports, and complimentary fuel surcharge waiver.
Designed for frequent Amazon shoppers, this card gives 5% cashback on Amazon.in purchases, 2% on bill payments, and 1% on all other spends. No annual fee ever, and the cashback is directly credited to your Amazon Pay balance.
Aimed at first‑time users, the Unnati card offers 1 reward point per ₹100 spent, a welcome bonus of 2,500 points after the first ₹10,000 spend, and free access to select dining partners.
Quick approval, no annual fee, and 1.5% cashback on utility bill payments make the Insta Easy a solid choice for everyday expenses. It also provides a 0% interest period on purchases for up to 45 days.
Zero annual fee throughout the card’s lifecycle, 2 reward points per ₹150 on groceries and supermarkets, and a 1% cashback on fuel spend. It also includes complimentary airport lounge access for the first two visits each year.
Not all zero‑fee cards are created equal. Follow these steps to pick the one that matches your lifestyle:
Identify your spending categories: If you shop heavily on Amazon, the Amazon Pay card maximises cashback. For travel lovers, look for cards offering lounge access.
Check the reward conversion rate: Some cards give points, others cashback. Convert points to monetary value to see which yields higher returns.
Look for hidden costs: While there is no annual fee, some cards levy foreign‑transaction fees, cash‑advance fees, or high late‑payment penalties.
Assess eligibility: Income requirements differ. Students may qualify for the SBI Unnati, whereas premium cards often need a higher income proof.
Maintain a good credit score: A score above 750 improves your chances across most banks.
Keep your existing debt low: Utilisation below 30% signals responsible credit behaviour.
Submit accurate documents: PAN, Aadhaar, salary slips, and bank statements should be current and clear.
Apply through the bank’s official portal or app: This reduces processing time and avoids third‑party fees.
Q: Can I upgrade a no‑fee card to a fee‑based one later?
A: Yes. Most banks allow you to request an upgrade once you meet the income and spend criteria, unlocking higher rewards.
Q: Do zero‑fee cards have lower credit limits?
A: Generally, they start with modest limits (₹20,000‑₹50,000) but increase with a good repayment track record.
Q: Is there any difference in interest rates?
A: Interest rates are similar across fee and no‑fee cards, usually ranging from 3.5% to 4% per month. Always pay the full balance to avoid interest.
Choosing a no‑annual‑fee credit card lets you reap the benefits of rewards, cashback, and convenience without the extra cost. Evaluate your spending habits, compare the reward structures, and apply with a clean credit profile to enjoy a hassle‑free financial experience in 2025.