You may need more time to pay your credit card bill. Sometimes you need urgent cash for a medical emergency or unemployment. Some credit card companies continue to charge you additional interest on any outstanding balance on your credit card. If you overuse your credit card, you’ll have more debt than you can handle. You may find it easier to repay if you can cover your monthly living expenses with your salary.
In such cases, you can reduce your debt burden by transferring your credit card balance to another bank’s credit card and paying it off in low or interest-free monthly instalments.
Recently, many credit card holders faced this situation during the COVID lockdown due to the halt of all economic activity. To make things easier, many card issuers offer the ability to transfer the amount you owe to another credit card. The best balance transfer credit cards in India are a buffer that allows you to pay no or less interest. It provides a period. This facility is the balance transfer facility.
How Does Balance Transfer work?
When you transfer an outstanding balance from one credit card to another, the new card issuer pays the old Balance for the outstanding Balance. You have a balance due with your new card issuer under the terms of the new issuer. With a grace period, you get to repay the outstanding Balance. Meanwhile, interest rates are zero or lower. The tremendous amount will deduct from your new credit card limit. The actual credit limit on the card = Actual credit limit on the new card – Unpaid amount transferred. Banks generally allow transfers up to 75-80% of your new credit card’s credit limit.
10 Best Balance Transfer Credit Cards in India
Many banks in India offer money transfers to cardholders, including HDFC Bank, SBI, ICICI Bank, Kotak Mahindra Bank, Standard Chartered Bank, RBL Bank, and HSBC Bank. In most cases, only the primary cardholder can use the balance transfer feature. Each bank has its policy on transferring funds. Here we have explained the guidelines and conditions for transferring funds from some of the best balance transfer credit cards in India.
|Name of the Bank||Interest Rate per month||Processing fees|
|ICICI Bank||1.25 %||NA|
|State Bank of India||3.35%||2% of the transfer fund or INR 199 if the period is 60 days. For the period is 6 months, the fees will be 0.|
|HSBC Bank||1.17%||1% or Rs. 149|
|HDFC Bank balance transfer credit card||1.1%||1% of the amount transferred.|
|Kotak Mahindra Bank||3.5%||Rs. 349 for Rs. 10000|
|Axis Bank||1-2%||1% of the transfer fund or INR 199.|
|RBL Bank||3.99%||3% of the amount transferred or Rs. 750 for 3 months.
Rs.499 for 6 months
Rs. 499 for 12 months
|IDFC Bank||0.75-3.5%||1% of the fund transferred.|
|PNB Bank||1%||Rs. 172 or more as per the amount transferred.|
|Standard Chartered Bank||5%||NA|
Let’s discuss the 10 best balance transfer credit cards in India in detail:
1. ICICI Balance Transfer Credit Card
You can transfer outstanding balances from other credit cards to ICICI Bank credit cards. ICICI is the Best Balance Transfer Credit Card in India which requires a minimum balance of Rs. 15,000 to use the balance transfer feature, and the maximum transferable amount is limited to Rs. 30,000 rupees. With ICICI, you can pay off your outstanding Balance in convenient monthly instalments within 3 to 6 months.
ICICI Bank offers the best balance transfer credit cards on the market, such as the ICICI Bank Emerald Credit Card, ICICI Bank Sapphiro Credit Card, and ICICI Bank HPCL Super Saver Credit Card, which can convert the best balance transfer credit cards. Migration.
If you are an ICICI customer, the ICICI Bank balance transfer credit card India feature is even easier. You may have to pass certain policy checks, but once approved, you’ll get the following benefits:
- The service is completely paperless.
- It enables you to apply for a debt of 3 Lakh.
- It allows you a 3- or 6-month repayment tenure.
- It also offers you a low balance transfer rate of interest.
2. SBI Balance Transfer Credit Card
The SBI balance transfer credit card in India allows you to convert your old credit card’s outstanding Balance into EMI and pay it off in 3 or 6 months. The State Bank of India Balance Transfer Card offers a variety of benefits.
Here are some of the benefits of a balance transfer credit card in India:
- For 180 days, the interest calculated on Balance remains at 7%.
- You can transfer up to 75% of your credit limit to a new card for a minimum of Rs. 5,000.
- The amount remains the same, and you must pay a fee of 1.5%.
- SBI Credit Cards that you can consider the best balance transfer credit cards of other banks include the SBI ELITE Credit Card, BPCL SBI Card Octane, and Club Vistara SBI Card.
3. HSBC Credit Card Balance Transfer
If you choose the HSBC Funds Transfer Credit Card, it lets you enjoy the following benefits:
- Loan terms of three months, six months, nine months, twelve months, eighteen months, or twenty-four months depending on the financial situation.
- You must pay a processing fee of 1% of the transfer amount.
- One of the critical approval factors is you are eligible to repay the loan. With this option, you can transfer your outstanding Balance to another bank’s credit card and pay it off in convenient monthly instalments.
- The interest rate is 1.17% per month for a 3 to 12 months term.
- If you repay the amount in 18 or 24 months, the interest rate is 1.33%.
- Besides the interest, you must also pay a processing fee of 1.5% of the remaining amount.
- You may request a balance transfer at the EMI facility by texting 575750.
4. HDFC Credit Card Balance Transfer
HDFC Bank, the country’s best balance transfer credit card in India, allows you to transfer outstanding balances on your existing credit card (from another bank) to your HDFC credit card and pay the same amount in easy monthly instalments over 9 to 48 months. Amounts transferred with this best balance transfer credit card will accrue interest at 1.1% per month. Besides the interest, you will also have to pay a processing fee of 1% of the remittance amount (minimum Rs. 250). Includes HDFC Infinia Credit Card, HDFC Diners Club Black Credit Card, HDFC Regalia Card, HDFC Millenia Credit Card, and more.
HDFC’s balance transfer credit card for existing bank customers has many advantages.
- Service is available without paperwork.
- You can choose the monthly fee between Rs. Rs 27 to Rs 10,000, depending on your Balance and current financial situation.
- You can check your card balance by contacting the hotline provided by your bank.
- Customers of other banks will undergo a credit check before issuing the card.
5. Kotak Mahindra Balance Transfer Credit Card
Another reliable bank that can help you handle your growing credit card debt is Kotak Mahindra. It offers the following benefits:
- You can send a minimum of Rs. 2,500 to your Kotak Mahindra credit card, but the maximum amount you can send is 75% of your credit card’s credit limit.
- The feature is only available for the best balance transfer credit card in India valid for at least six months.
- You must pay a processing fee of Rs. 349 per transfer of Rs. 10,000 to your Kotak Mahindra credit card.
- You can transfer up to 75% of your credit limit to a new card.
6. Axis Bank Balance Transfer Credit Card
Key Benefits of the Axis Bank Balance Transfer Card
- You can transfer a minimum of Rs. 5,000.
- You can choose a repayment period of three months or six months.
- In this case, it is essential to note that the interest rate and the fee may vary depending on your financial situation.
7. Standard Chartered Balance Transfer Credit Card
Standard Chartered Bank does a great job of offering the benefits of some best balance transfer credit cards in India.
- You can pay as little as 5% of the monthly transfer amount.
- You can enjoy direct debits up to Rs. 50,000 rupees.
- The bank charges a surprisingly low monthly interest rate of 0.99% for the first six months. After this period, interest rates may vary depending on the best balance transfer credit cards selected.
8. PNB Balance Transfer Credit Card
By choosing PNB Balance Transfer Credit Card, you can expect impeccable benefits such as:
- You get a six months repayment period
- you only have to pay a fixed EMI of Rs. 172.50 for every Rs. 1,000 transfer.
- The processing fee is Rs. 199, or 1% of the transfer amount.
9. RBL Balance Transfer Credit Card
In addition to expected features such as instant transfers and multi-term options, RBL’s best balance transfer credit card in India offers several other significant benefits, such as
- You can choose a repayment period of 3, 6, or 12 months.
- You must pay a percentage of the outstanding principal as a processing fee. It will be between 1% and 3%.
- When you apply for a new loan, you have a new credit check. Complex demands can also affect your credit score. If your loan application is denied, the impact will be more significant.
10. IDFC Balance Transfer Credit Card
When offering benefits on the balance transfer credit card India, IDFC will go to great lengths to provide the following benefits:
- You can combine all existing credit card balances into one.
- You can pay off your Balance with a convenient EMI at a fairly low-interest rate.
- You can choose one of the various alternatives available, such as a Simple Personal Loan or Smart Personal Loan, for enhanced convenience during repayment of the Balance.
Benefits and Drawbacks of Balance Transfer Credit Card India
Credit card balance transfer is a prominent and valuable feature of the best balance transfer credit cards in India. This option helps cardholders escape a cyclical debt heightened by compounding interest. When a credit card holder cannot pay off his total balances, they may opt for a balance transfer. In this way, they will be able to pay off all their debts, and now only one deficit will be running in their name.
Benefits of Balance Transfer Credit Card in India
Let’s see. Below are the benefits of a balance transfer credit card in India:
1. They help stabilize your credit score
After the approval of your balance transfer credit card in India, your debt will have a lower interest rate making it easier for cardholders to acquire. Around their debts to settle more. After this, the cardholder’s creditworthiness improves and helps stabilize its creditworthiness over time.
2. Interest-Free Periods
Credit card issuers offer interest-free periods for new purchases after a balance transfer. It allows customers to make further purchases without accruing interest.
3. Reduced financial burden
The interest rate charged on balance transfer credit cards in India is low compared to other credit cards. Other credit cards require cardholders to pay 3.5% interest per month, and the best balance transfer credit cards in India charge 1.8% interest. It will reduce cardholders’ financial burden as they have to pay lower interest rates.
4. Other Benefits
Credit card providers also offer an interest-free period on new purchases after the balance transfer.
Drawbacks of a Balance Transfer Credit Card in India
Not all best balance transfer credit cards offer all the benefits. The same applies to balance transfer credit cards in India, as they all have pros and cons. Now let’s discuss the disadvantages of the best balance transfer credit cards in India:
1. Will pay higher interest rates
Credit card holders may be subject to special interest rates due to credit quality and existing debt. If not, you will end up paying high interest on balance transfers.
2. Risk of More Debt
He transferred all the debt to one credit card, so he had more credit available. Credit cardholders must be persistent in not using this available credit limit.
3. Fund transfers can hurt your credit
Applying for or getting a new credit card will affect your credit score. Your credit score will negatively impact if your credit use exceeds 30%.
4. Balance transfers can be expensive
If you request a balance transfer, you will need to pay a balance transfer fee and an annual fee for your new credit card. Therefore, before transferring your Balance to a new credit card, you should review the associated costs and ensure that they are less than the interest you are paying on your old credit card.
How does it Transfer Balance from one Credit Card to Another?
A credit card balance transfer is the best option for paying off large outstanding credit card bills. However, transferring credit card balances only makes sense if the bank you’re transferring funds from offers a better rate than the original credit card with the outstanding charges.
The most important thing when transferring credit card balances is that you must be within your credit limit to move to a new credit card. So if your second credit card has a limit of Rs 50,000 and you have outstanding charges from your previous card of Rs 75,000, you can only transfer Rs 50,000 to your new card under the balance transfer scheme.
Various banks provide forms to facilitate credit card balance transfers. When requesting a credit card balance transfer, you will need to provide the following information:
- Credit Limit
- Credit Card Expiration Date
- Unpaid Balance
- Credit Card Number
Most banks require several documents to accept requests to transfer credit card balances.
- Copy of credit card
- 3-6 recent credit card statements
- Proof of address
The new credit card company will pay the outstanding Balance to the old company. It will reduce the burden of paying additional interest on unpaid credit card bills. The interest you pay now depends on your new credit card. In general, the interest charged for receiving a credit card balance is lower than the interest charged by your bank on unpaid credit card bills. However, this reduced interest rate is only valid for a certain period, after which the average interest rate will apply.
Suppose one of your best balance transfer credit cards has trouble paying the outstanding Balance. In that case, we recommend you transfer the same amount to another bank’s credit card.
In most cases, your bank will also let you pay your outstanding balance in convenient monthly instalments. However, average interest rates will apply if you do not repay fully by the due date. Since migrating balances involves reviewing your credit report, it can also affect your credit profile. However, failing to pay on time will harm your credit score.
Therefore, we recommend transferring the outstanding amount to another credit card that allows a zero or low-interest rate period to pay off the due Balance.
Balance Transfer Credit Card India – FAQs
How should I opt for the best balance transfer credit cards In India?
Ans. If you have a high-interest credit card, apply for a balance transfer credit card in India to save on interest payments.
What is the EMI balance?
Ans. Balance Transfer to EMIs is a feature offered by the best balance transfer credit cards issuers, such as SBI and HDFC. They allow you to settle your outstanding balance in equal monthly instalments.
Will a balance transfer help?
Ans. The profitability of a balance transfer depends on the interest you are currently paying on your existing balance transfer credit card in India and the interest and fees charged on your new credit card. If the difference is significant, you will save the extra money you pay for interest.