Credit cards are popularly known for the benefits and privileges they provide. One of the credit card features is the balance transfer facility offered in certain credit cards. With a credit card balance transfer feature, one can transfer a high-interest debt to a low-interest credit card, thus saving a lot on interest repayments.
The other benefits of a balance transfer feature on a credit card are:
Helps you to conveniently consolidate your credit card debts
Saves on interest repayments
Gives a chance to move to a credit card with better terms
At a Glance – Best Balance Transfer Credit Cards in India
|
Card Name
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Balance transfer Processing fee
|
Minimum/ Maximum amount
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|
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By 60 days – 2% or Rs. 199, whichever is higher By 180 days- Zero
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Minimum – ₹5000 and Maximum- Up to 75% of the available credit limit on the card.
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₹349 for every ₹10,000
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Minimum- ₹2500 Maximum- Up to 75% of the available credit limit on the card.
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N/A
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Minimum- ₹15,000 and Maximum- ₹3 lakhs
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1% of the loan amount
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Minimum- ₹10,000 and Maximum- N/A
|
|
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2% of the balance transfer amount for a 3 months EMI plan. Minimum processing fee – ₹199
1% of the balance transfer for 6 months EMI plan. Minimum processing fee – ₹100
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Minimum – ₹5000 and Maximum- N/A
|
Before we get into what different banks offer, let’s keep the basics of credit card balance transfer clear:
Things to Consider When Applying for a Credit Card Balance Transfer
In order to qualify for a credit card balance transfer, you must have a good to excellent credit score. Moreover, a balance transfer is generally offered to customers who have a credit card for at least a year.
A credit card balance transfer generally attracts a fee which depends on the credit card provider and the amount you need to transfer.
Although a balance transfer helps you save a lot on interest repayments, it equally remains a debt that needs to be paid. Therefore, it is important to prepare a debt plan to bring it down.
Sometimes it is not possible to completely transfer the amount even if you’re approved.
Additionally, it is important to ensure that the credit card for balance transfer has enough credit limit and will not lead to maxing out after transfer.
It is best advisable to repay the amount within the free or nominal interest rate period. Thereafter, the interest rates are higher, thus increasing the cost of interest repayments.
Best 5 Balance Transfer Cards in India
The top 5 credit cards that offer the best balance transfer facility in India are:
1. SBI Credit Card Balance Transfer<
In order to be eligible for SBI credit card balance transfer, the customer must be a resident of India and must be the primary credit cardholder of the account.
A customer can simply log into his/her credit card account and request for a balance transfer. Or else, one can simply send an SMS from the registered number to 56767 with the message “BT”. Alternatively, you can call the SBI customer care to request for a balance transfer.
There are two different plans available under SBI balance transfer. A customer must choose the plan as per his her repayment schedule. The bank works on a reducing rate of interest for all the plans.
| Particulars |
By 60 days |
By 180 days |
| Interest rate |
0% interest |
1.7% interest |
| Processing Fee |
2% or Rs. 199, whichever is higher |
Zero |
Apply for SBI Credit Card Online
2. Kotak Credit Card Balance Transfer
Kotak Mahindra Bank offers the balance transfer facility to customers who have been holding the credit card for more than 6 months.
One of the unique features of Kotak balance transfer is that it does not charge interest on any following purchases made.
You can apply for a balance transfer request via SMS by sending the text “BT” to 5676788. Alternatively, you can avail the facility through net banking or calling the customer care which is 1860 266 2666.
The processing fee of Kotak credit card balance transfer is ₹349 for every ₹10,000 transferred.
3. ICICI Credit Card Balance Transfer
ICICI bank balance transfer is available to individuals with a good credit score, repayment history and transaction pattern.
In order to avail balance transfer facility by ICICI Bank, you can contact the ICICI customer care or send an SMS to 5676766 with the message “BT”. Alternatively, you can give a missed call 7572807807.
There are two repayment options available in ICICI bank balance transfer. One is EMI balance transfer wherein the cardholder repays the principal and interest in Equal Monthly Installments. Another method is Flexi Balance Transfer in which the transferred amount is consolidated and is then charged at the special interest rate for balance transfer.
Also, if the ICICI credit cardholder has not repaid the transferred amount within the stipulated time period, the standard interest rate is then applied.
Apply for ICICI Credit Card
4. HDFC Credit Card Balance Transfer
HDFC bank customers have the facility to avail HDFC credit card balance transfer and have the flexibility of fixing the monthly instalment amount for as low as ₹27 for every ₹10,000.
You can, in fact, check your credit card balance transfer by calling the phone banking line at any time or will be approached by a sales representative if you are eligible and not registered for DNC/NDNC/DND.
Since the loan is pre-approved, there is no requirement for documentation.
The interest is calculated using the reducing balance method:
| Loan Amount (Rs.) |
48 months |
36 months |
24 months |
12 months |
9 months |
| 50,000 |
1,346 |
1,690 |
2,382 |
4,471 |
5,866 |
| 1,00,000 |
2,693 |
3,379 |
4,764 |
8,941 |
11,731 |
| 2,00,000 |
5,385 |
6,758 |
9,527 |
17,882 |
23,462 |
| 3,00,000 |
8,078 |
10,137 |
14,291 |
26,823 |
35,193 |
| 4,00,000 |
10,771 |
13,516 |
19,054 |
35,764 |
46,925 |
| 5,00,000 |
13,463 |
16,895 |
23,818 |
44,706 |
58,656 |
* Above EMI table is for Indicative purpose, calculated at Rate of Interest @ 1.10% per month.
Monthly payment dues will include EMI and GST on the Interest amount of EMI.
Apply for HDFC Credit Card Online
5. Axis Bank Credit Card Balance Transfer
You can avail the balance transfer facility four times.
After applying for a BT, you will receive a demand draft in favor of the bank where you have your credit card bills due. All you need to do is submit it to the respective bank.
The finance charges applicable for an Axis Card Balance Transfer is 0% for 3 months and 0.75% for 6 months.
The processing fee for a balance transfer is levied in the following manner:
-2% of the balance transfer amount if you choose a 3 months EMI plan. The minimum processing fee is ₹199
-1% of the balance transfer amount if you choose the 6 months EMI plan. The minimum processing fee is ₹100
All in all, it is advisable to use your credit card wisely to avoid any kind of credit card debt. However, if you ever fall into a debt trap, a credit card balance transfer can be your way out and can help you save a lot on interest costs.
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