Best Zero/Low Annual Fee Credit Cards in India 2025

You don't need to pay ₹5,000+ annually for a good credit card. Many free and low-fee cards offer solid rewards that beat premium cards on a cost-adjusted basis.

Reality Check: A free card giving 1.5% back beats a ₹5,000 fee card giving 3% back unless you spend ₹3.3L+ through the premium card.

Truly Lifetime Free Cards (₹0 Forever)

1. Amazon Pay ICICI - Best Free Card Overall

Feature	Details
Annual Fee	₹0 forever
Amazon (Prime)	5% back
Amazon (Non-Prime)	3% back
Amazon Pay partners	2% back
Everything else	1% back

Why It's Great: Zero cost + 5% on Amazon is unbeatable. The 1% floor on all spend is solid too.

Best For: Amazon shoppers, anyone wanting a no-risk free card.

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2. Axis Ace - Best Free Utility Card

Feature	Details
Annual Fee	₹0 forever
Bill payments	2% cashback
Google Pay spends	5% (select)
Base spend	1%
Fuel surcharge	Waived

Why It's Great: 2% on utility bills adds up fast. Most people pay ₹5-10k/month in bills.

Best For: Heavy bill payers, Google Pay users.

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3. OneCard - Best Modern Free Card

Feature	Details
Annual Fee	₹0 forever
Cashback	1% base, 5X on categories
Card Material	Metal (free!)
App	Excellent controls
Rewards	Varies by spend pattern

Why It's Great: Modern app, metal card, and decent rewards—all free.

Best For: Young professionals who want a slick experience.

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4. IDFC First Select (Debit) - Best Free Forex

Feature	Details
Annual Fee	₹0 (with IDFC account)
Forex Markup	0%
Lounge	4 visits/year
Rewards	Basic

Why It's Great: Zero forex is unmatched. Even premium credit cards charge 2%+.

Best For: International travelers, online shopping in USD.

Note: This is a debit card, not credit.

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5. AU Small Finance LIT Card - Best Customizable Free Card

Feature	Details
Annual Fee	₹0
Categories	Choose your 3 bonus categories
Cashback	1.5% on chosen categories
Base	0.25%

Why It's Great: You pick where to earn more—groceries, fuel, dining, etc.

Best For: Those with predictable spend patterns.

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Low-Fee Cards Worth Paying For (<₹1,000)

6. Flipkart Axis Bank - ₹500 (Waivable)

Feature	Details
Annual Fee	₹500 (waived on ₹2L spend)
Flipkart/Myntra	5% back
Partner merchants	4% back
Base spend	1.5% back

Why It's Worth It: If you spend ₹50k+/year on Flipkart, the 5% cashback (₹2,500) covers the fee 5x over.

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7. HDFC Millennia - ₹1,000

Feature	Details
Annual Fee	₹1,000
Online shopping	5% cashback
PayZapp/SmartBuy	2.5%
Tap to pay	2.5%
Base	1%

Why It's Worth It: Entry to HDFC ecosystem + 5% online is solid value. Gateway to Regalia upgrade.

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8. SBI SimplyCLICK - ₹499 (Waivable)

Feature	Details
Annual Fee	₹499 (waived on ₹1L spend)
Amazon/partners	10X points (2.5%)
Online spend	5X points (1.25%)
Base	1X

Why It's Worth It: Low waiver threshold. Amazon 10X competes with Amazon Pay ICICI.

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Comparison: Free vs Paid Cards

Card	Fee	On ₹5L Spend	Net Return
Amazon Pay ICICI	₹0	₹12,500 (avg)	₹12,500
Axis Ace	₹0	₹10,000	₹10,000
Flipkart Axis	₹500	₹15,000	₹14,500
HDFC Millennia	₹1,000	₹17,500	₹16,500
HDFC Regalia	₹2,500	₹20,000	₹17,500

Insight: Fee cards win on gross returns but free cards often win on net returns for moderate spenders.

The Free Card Stack Strategy

Minimalist Stack (₹0 total)

Card	Use For
Amazon Pay ICICI	Amazon, online shopping
Axis Ace	Bills, utilities, offline

Expected Return: ₹15,000-20,000/year on ₹5L spend

Maximizer Stack (₹500 total)

Card	Use For
Amazon Pay ICICI	Amazon
Flipkart Axis	Flipkart, Myntra, partners
Axis Ace	Everything else

Expected Return: ₹20,000-25,000/year on ₹6L spend

When to Upgrade to Paid Cards

Stay Free If:

• Annual spend under ₹5L
• Don't travel frequently
• Don't need lounge access
• Prefer simplicity over optimization

Consider Paid Cards If:

• Annual spend ₹8L+
• Travel 6+ times/year (lounge value)
• Heavy SmartBuy/portal usage potential
• Building toward premium cards (Infinia)

Free Card Limitations

Limitation	Impact	Solution
No lounge access	Miss airport comfort	Buy Priority Pass separately (₹12k)
Lower credit limits	Utilization management	Request CLI after 6 months
Basic insurance	Less coverage	Buy travel insurance separately
No milestone bonuses	Miss extra rewards	Use volume to compensate

Building Credit with Free Cards

Free cards are perfect for building credit history:

1. Get Amazon Pay ICICI or Axis Ace - Easy approval
2. Use 10-20% of limit monthly - Show responsible usage
3. Pay full amount always - Never pay interest
4. Wait 12-18 months - Build history
5. Apply for premium card - Better approval odds

Free Card Approval Tips

Easiest to Get (Low Income OK)

1. Amazon Pay ICICI - ₹2.5L income
2. Flipkart Axis - ₹4L income
3. OneCard - ₹3L income

Moderate Requirements

1. Axis Ace - ₹4.5L income
2. AU LIT - ₹3L income

Secured Option (Guaranteed Approval)

• IDFC WOW - Link to FD, no income proof needed

Common Questions

Are free cards really free?

Yes, lifetime free means no annual fee ever. But watch for:

• Foreign transaction fees (3.5% typical)
• Late payment fees
• Cash withdrawal fees

Do free cards hurt credit score?

No. Free cards report to bureaus just like paid cards. Usage matters, not fee.

Can I get premium benefits without paying?

Lounges: No (need paid card or separate Priority Pass) Travel insurance: Basic only Concierge: No

Should I ever close a free card?

Rarely. Free cards cost nothing to hold and help credit history age.

Summary: Best Free Cards by Use Case

Use Case	Best Free Card
Amazon shopping	Amazon Pay ICICI
Flipkart shopping	Flipkart Axis (₹500)
Utility bills	Axis Ace
International spend	IDFC First Select Debit
Modern app experience	OneCard
Customizable rewards	AU LIT
Building HDFC relationship	HDFC Millennia (₹1,000)
Building SBI relationship	SBI SimplyCLICK (₹499)

Next Steps

1. Start with Amazon Pay ICICI - Nearly universal approval, great rewards
2. Add Axis Ace for bills - Complementary use case
3. Consider Flipkart Axis - If you shop Flipkart regularly
4. Use responsibly for 12 months - Build history
5. Evaluate premium cards later - Only if math makes sense

Free cards are genuinely excellent in 2025. Unless you have specific premium needs (lounges, high multipliers, transfer partners), a well-chosen free stack delivers 90% of the value at 0% of the cost.