Best Credit Card Under ₹500 Annual Fee India 2026 — Free + Near-Free Cards With Actual Benefits
Last verified June 2026. Best credit cards in India 2026 with annual fee under ₹500 — including lifetime-free options that deliver real value.
The 7 best credit cards under ₹500 annual fee in 2026
1 Amazon Pay ICICI
The benchmark no-fee card for Amazon shoppers. ICICI lists eligibility as age 21+ with ₹30,000 monthly income. Full review: Amazon Pay ICICI review.
2 Scapia Federal Bank
No fee and no forex markup, with rewards on travel booked in the Scapia app. Full review: Scapia Federal Bank review.
3 Kiwi (RuPay on UPI)
Free card that turns UPI QR payments into credit-card spends with cashback. Full review: Kiwi (RuPay on UPI) review.
4 IDFC FIRST WOW! (FD-backed)
Secured against an IDFC FIRST FD of ₹20,000 or more, so no credit history is needed. Full review: IDFC FIRST WOW! (FD-backed) review.
5 Axis Bank ACE
High cashback on bills and food delivery for a ₹499 fee you can waive. Full review: Axis Bank ACE review.
6 SBI SimplyCLICK
Strong on online partner brands, with an easy ₹1 lakh waiver. Full review: SBI SimplyCLICK review.
7 Tata Neu Plus HDFC Bank
Worth it if you regularly shop Tata brands such as BigBasket, Croma and Tata CLiQ. Full review: Tata Neu Plus HDFC Bank review.
Head-to-head comparison
| Card | Fee | Headline Rate |
|---|---|---|
| Amazon Pay ICICI | ₹0 (lifetime free) | 5% on Amazon for Prime members, 3% without Prime, 2% at Amazon Pay partners, 1% elsewhere |
| Scapia Federal Bank | ₹0 (lifetime free) | 10% Scapia Coins (about 2%), 20% on Scapia travel, 0% forex |
| Kiwi (RuPay on UPI) | ₹0 (lifetime free) | 1.5% on UPI scan-and-pay, 0.5% online |
| IDFC FIRST WOW! (FD-backed) | ₹0 (lifetime free) | 4 pts per ₹200 including international, 0% forex |
| Axis Bank ACE | ₹499 + GST (waived on ₹2 lakh) | 5% on bills and recharges via Google Pay, 4% on Swiggy, Zomato and Ola (₹500 combined cap a cycle), 1.5% elsewhere |
| SBI SimplyCLICK | ₹499 + GST (waived on ₹1 lakh) | 10X at online partners such as Myntra, Swiggy and Cleartrip, 5X on other online spends (cap 10,000 pts a month) |
| Tata Neu Plus HDFC Bank | ₹499 + GST (waived on ₹1 lakh) | 2% NeuCoins on Tata brands, 1% elsewhere, up to 1% on RuPay UPI |
Sources & references
All fees and reward rates verified against issuer official T&C pages as of June 2026. Reward programmes change frequently — confirm with the issuer before applying.
Checked October 2026. Every card here has an annual fee of ₹500 + GST or less, or none at all. We checked each against its issuer’s current terms and list the spend that waives the fee where there is one.
Low-fee cards: the maths
A card with a ₹499 fee must earn more than ₹499 a year in rewards (or get the fee waived) to beat a lifetime-free card. At 1.5% back, that takes about ₹33,000 a year of spend — easy for most households. Many low-fee cards also waive the fee if you spend ₹1–2 lakh in a year.
What counts as “actual benefits”
- A meaningful cashback rate (1–5%) on categories you actually use.
- Low forex markup if you travel or shop on foreign sites.
- Fuel surcharge waiver if you drive.
- Clear, uncapped base rewards rather than points that are hard to redeem.
Hidden costs to check
A low joining fee can come with a high late fee, cash-advance fee or utility surcharge. Read the most important terms and conditions (MITC) before applying, and see hidden charges on credit cards.
Our approach
We favour lifetime-free cards for light spenders and ₹500-fee cards with easy waivers for anyone spending ₹15,000+ a month. Compare zero-fee options in best lifetime-free credit cards.
Reviewed October 2026. Card features change often — confirm current terms on the issuer’s site before applying.
FAQs
Is a lifetime-free card always better?
No. A ₹500 card that earns 1–2% more on your main spending can easily repay its fee.
