UPI has become India’s most popular payment method—but now it’s even more powerful with RuPay credit cards linked to UPI. You can scan any QR code, pay instantly, and still enjoy credit benefits like cashback, rewards, and an interest-free period.
The best part? You don’t need premium cards. Many banks offer UPI-enabled credit cards with an annual fee of under ₹ 500, making them perfect for beginners and daily users.
This detailed guide covers top cards, features, benefits, fees, eligibility, and expert tips to help you choose the best one.
What Makes UPI Credit Cards Special?
Unlike normal credit cards, UPI-enabled RuPay credit cards allow you to:
- Pay via QR code using apps like PhonePe, Google Pay, Paytm.
- Use your credit limit instead of your bank balance.
- Earn rewards even on small payments like ₹50–₹500
- Enjoy an interest-free period (up to 45 days)
This makes them ideal for daily expenses like groceries, food, fuel, and local shopping.
Top UPI Credit Cards Under ₹500 Annual Fee
Here are the best low-fee UPI credit cards in India:
1. HDFC Bank RuPay UPI Credit Card
Best for: Maximum cashback on daily UPI usage
- Cashback on UPI transactions
- Smooth linking with UPI apps
- Widely accepted across merchants.
Joining Fee: ₹0–₹500
Annual Fee: ₹0–₹500
👉 Ideal for users who make frequent small UPI payments
2. ICICI Bank Coral RuPay Credit Card
Best for: ICICI Bank Credit Card is best for Lifestyle + UPI benefits
- Reward points on UPI and retail spending
- Dining and movie offers
- Fuel surcharge waiver
Joining Fee: ₹500
Annual Fee: ₹500
👉 Best for users who want extra lifestyle benefits along with UPI
3. SBI SimplySAVE RuPay Credit Card
Best for: Everyday spending
- Reward points on groceries, dining, and UPI
- Easy approval for salaried individuals
- Good for monthly expense management
Joining Fee: ₹499
Annual Fee: ₹499
👉 Perfect for budget users and beginners
4. Axis Bank RuPay Credit Card
Best for: Cashback + beginner-friendly
- Cashback on UPI and online spends
- Simple eligibility criteria
- Good for first-time credit users
Joining Fee: ₹0–₹500
Annual Fee: ₹0–₹500
👉 Ideal for new users building a credit score
5. PNB RuPay Credit Card
Best for: Lowest cost users
- Basic rewards for transactions
- Low annual fee
- Simple usage
Joining Fee: ₹250–₹500
Annual Fee: ₹250–₹500
👉 Best for users who want low maintenance cost
Also Read: PNB Launched LUXURA Metal Credit Card on Visa Infinite
Quick Comparison Table
| Card Name | Best For | Joining Fee | Annual Fee | Benefit |
| HDFC RuPay UPI | Cashback | ₹0–₹500 | ₹0–₹500 | Cashback on UPI |
| ICICI Coral RuPay | Lifestyle | ₹500 | ₹500 | Rewards + offers |
| SBI SimplySAVE RuPay | Daily use | ₹499 | ₹499 | Grocery rewards |
| Axis RuPay Card | Beginners | ₹0–₹500 | ₹0–₹500 | Cashback |
| PNB RuPay Card | Budget | ₹250–₹500 | ₹250–₹500 | Low cost |
Eligibility Criteria
To apply for these cards, you generally need:
- Age: 21–60 years
- Employment: Salaried or self-employed
- Minimum income: ₹10,000–₹20,000/month
- Basic KYC: PAN + Aadhaar
- CIBIL Score: 650+ preferred
Some banks may approve entry-level cards even with low credit history.
Benefits of Using UPI Credit Cards
1. Earn Rewards on Small Payments
Even ₹50–₹100 transactions earn rewards—something debit cards don’t offer.
2. Better Cash Flow Management
Use credit now and pay later, helping you manage monthly expenses.
3. No Need to Carry Cash
UPI + credit card = fully digital payments
4. Build Credit Score
Regular usage and timely payments improve your CIBIL score.
Also Read: 5 Best Credit Cards for Cashback & Rewards
Tips to Choose the Best UPI Credit Card
- Choose a lifetime free or a low annual fee card.
- Check cashback vs reward structure.
- Ensure easy UPI linking support.
- Select a card based on your spending habits
- Prefer cards with fee waiver options.
Conclusion
If you want a simple and affordable way to use credit for daily payments, UPI credit cards with an annual fee of under ₹ 500 are the best option. They offer a perfect balance of low cost, convenience, and rewards.
With the growing use of UPI in India, these cards are becoming a must-have for smart financial management. Through 24hrLoan, you can explore the best options and start your credit journey easily.