Smartness plays a very important role when dealing with credit cards especially when debt keeps on mounting making it impossible for you to pay off the due amount. This is more worrysome because non-payment of the due amount hurts your credit score and along with higher interest which further increases the due amount every month. In such a situation one of the best recommended solutions is transferring the outstanding balance to another credit card. This process is known as balance transfer. And this repayment option is used across the world especially in western countries as it saves money as interest rate offered on credit cards is less compared to the rates charged over existing card.
Many issuers in India offer credit card balance transfer facility and their main intention to do this to attract new customers.
Here is the list of credit cards in India with zero to low interest rates on balance transfer as on June’15:
Card Issuers Offering Credit Card Balance Transfer
|Card Provider||Interest Rate on Balance Transfer (p.m.)||Interest Period||Processing Fees|
|State Bank of India||0%||60 Days||2% or Rs. 199 whichever is higher|
|State Bank of India||1.7%||6 Months||Zero|
|HSBC (Convert due payment to EMI)||0.99%||3,6,9,12 months||1% (minimum Rs. 149)|
|HSBC (Convert due payment to EMI)||1.25%||18 & 24 months||1% (minimum Rs. 149)|
|Standard Chartered Bank||0.99%||6 months & normal credit card rates after 6 months||NA|
|Punjab Natioanl Bank||0.99%||6 months||Minimum Rs. 172|
|Axis Bank||0%||3 months||1% of balance transfer amount or Rs.199, whichever is higher|
|LIC (in partnership with Axis Bank)||0%|
After 3 months
|2% processing fee or Rs. 199|
|LIC (in partnership with Axis Bank)||0.75%|
After 6 months
|1% processing fee or Rs. 100 (whichever is higher)|
|Kotak Mahindra Bank||0%||NA||Rs. 349 per Rs. 10000|
For Citibank: Please contact the bank for details – http://www.online.citibank.co.in/customerservice/citiphone.htm
For Kotak Mahindra Bank: No interest charged if dues are paid on time. For more details contact the bank on toll free number: 1800 102 6022
Benefits of Balance Transfer
- Helps you save money on interest rate as on your existing card the higher interest rate levied will further increase your overdue amount.
- Convenient, as less/no documentation work is involved. If you already hold a credit card to which you are transferring the balance then you may not be required to furnish any documents.
- Easy and quick processing helps in clearing the debt as early as possible.
- After balance transfer, you get buffer period to pay the outstanding amount with a zero or low interest rate.
- You can also transfer debts from one or more cards to a single card.
- Cheque is delivered at your preferred address in less than 7 days.