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Balance Transfer Credit Card India

By: EconomyWatch Content Date: 15 February 2010

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Using a balance transfer credit card is an excellent debt management technique, allowing cardholders to transfer their outstanding amount from a high interest credit card to a low interest one. Balance transfer credit cards in India are offered by most public, private and foreign banks, with varying processing charges, rates and terms.

Best Balance Transfer Credit Card India Options

Balance transfer credit cards with zero APR are fast becoming a rage in India. These cards enable the transfer of balance from another credit card without paying any interest for a predetermined period. Some popular zero APR balance transfer credit card issuers are:

SBI

The balance transfer interest-free period on SBI credit cards is 75 days. Thereafter, balance transfers are subject to the regular interest rate, which is up to 2.95% per month. Service taxes may also be applicable on balance transfers after the conclusion of the interest-free period. All balance transfers to SBI credit cards take up to 10 working days for processing.

Kotak Bank

The bank offers a zero APR on balance transfers for the first three months since card issue, helping to save as much as Rs299 on every Rs10,000. Kotak Bank credit card balance transfers take about 5 days for processing.

ICICI Bank

ICICI credit cards come with zero APR on balance transfers for the first three months and thereafter, a low rate of 0.75% per month till the sixth month. After the conclusion of this period, a fixed rate of 1.49% per month is charged on all balance transfers.

Credit Card Balance Transfers: Important Considerations

While a balance transfer option helps in considerable savings, a cardholder must bear in mind that most balance transfer credit cards in India have certain hidden clauses, often reducing the total card savings. For instance:

While using a zero APR balance transfer scheme on the credit card, cardholders are generally not eligible to use the interest-free credit periods. Consequently, all fresh purchases are subject to the standard credit card interest rate, even if the card bill is paid in full before the due date.
Some credit card issuers charge a transfer fee, which is generally a percentage of the balance transfer amount; thereby adding significantly to the cardholder’s burden.
A balance transfer credit card India may also be subject to a cap; limiting the amount of transfer and thereby reducing the net savings.

Finally, some credit card issuers in India charge a hefty annual fee or membership fee on balance transfer credit cards, which must also be taken into consideration while comparing cards.

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