In the digital age where almost every purchase can be made with a swipe or a tap, having the right credit card can help you maximize your savings. Among the many types of credit cards, cashback credit cards are among the most popular in India. They offer direct monetary returns on your spending, making them ideal for smart consumers looking to save on everyday expenses.
This comprehensive guide will help you understand cashback credit cards, their benefits, and a comparison of the best credit cards for cashback in India in 2025.
All Contents
- 1 What is a Cashback Credit Card?
- 2 Why Choose a Cashback Credit Card?
- 3 Key Features to Look for in a Cashback Credit Card
- 4 Best Credit Cards for Cashback in India (2025)
- 5 Comparison Table: Top Cashback Credit Cards
- 6 Who Should Get a Cashback Credit Card?
- 7 Things to Keep in Mind Before Applying
- 8 How to Apply for a Cashback Credit Card
- 9 Frequently Asked Questions
- 10 Conclusion
What is a Cashback Credit Card?
A cashback credit card is a type of credit card that rewards users with a percentage of the transaction amount as cashback. This cashback is typically credited directly to your credit card account, effectively reducing your overall bill.
The cashback can be earned on categories like groceries, fuel, travel bookings, online shopping, utility bills, dining, and more, depending on the card issuer’s policies.
Why Choose a Cashback Credit Card?
Cashback credit cards offer several advantages over reward-based cards:
- Instant value on every spend
- No need to accumulate and redeem reward points
- Transparent and easy-to-understand benefits
- Useful for those who make frequent purchases in select categories
- Helps reduce the overall cost of living by saving on routine spending
Key Features to Look for in a Cashback Credit Card
When choosing the best cashback credit card in India, consider the following features:
- Cashback Rate
Higher cashback percentage means greater savings, but check if there are monthly or annual limits. - Eligible Categories
Identify your top spending categories and choose a card that offers maximum cashback in those areas. - Annual Fees
Some cards charge annual fees, which may or may not be waived based on spending milestones. - Redemption Process
Look for cards that offer automatic cashback credit to your statement balance. - Spending Caps and Conditions
Understand limits on monthly cashback and the minimum transaction amount required to earn cashback.
Best Credit Cards for Cashback in India (2025)
Below is a list of the top-performing cashback credit cards in India based on their benefits, cashback percentages, and suitability for different spending habits.
1. HDFC Millennia Credit Card
- Cashback: 5% on Amazon, Flipkart, and other select brands via PayZapp & SmartBuy; 1% on other online and offline spends
- Annual Fee: ₹1,000 (waived on ₹1 lakh annual spend)
- Best For: Online shopping, lifestyle spending
2. SBI Cashback Credit Card
- Cashback: 5% on all online spends (except utilities, insurance, fuel, EMI); 1% on offline spends
- Annual Fee: ₹999 (waived on ₹2 lakh annual spend)
- Best For: High online spenders across e-commerce platforms
3. Axis Bank Ace Credit Card
- Cashback: 5% on bill payments and recharges via Google Pay; 2% on other spends
- Annual Fee: ₹499 (waived on ₹2 lakh annual spend)
- Best For: Utility bills, Google Pay users
4. Amazon Pay ICICI Credit Card
- Cashback: 5% on Amazon (Prime members), 3% for non-Prime, 1% on others
- Annual Fee: Zero
- Best For: Frequent Amazon shoppers
5. Flipkart Axis Bank Credit Card
- Cashback: 5% on Flipkart and Myntra; 4% on Swiggy, Uber, PVR; 1.5% on other spends
- Annual Fee: ₹500 (waived on ₹2 lakh annual spend)
- Best For: E-commerce and lifestyle categories
6. Standard Chartered Smart Credit Card
- Cashback: 2% on online spends, 1% on all other spends; 1% fuel surcharge waiver
- Annual Fee: ₹499 (waived on ₹1.2 lakh annual spend)
- Best For: Budget-friendly cashback card seekers
7. Kotak Mojo Platinum Credit Card
- Cashback: Earn 1.25% cashback on online spends and 0.5% on other purchases
- Annual Fee: ₹1,000 (waived on ₹2 lakh annual spend)
- Best For: Balanced offline and online spending
Comparison Table: Top Cashback Credit Cards
| Credit Card | Cashback Rate | Annual Fee | Ideal For |
|---|---|---|---|
| HDFC Millennia | Up to 5% | ₹1,000 | Online shopping, SmartBuy |
| SBI Cashback | Up to 5% | ₹999 | All online spending |
| Axis Ace | Up to 5% | ₹499 | Google Pay & bill payments |
| Amazon Pay ICICI | Up to 5% | ₹0 | Amazon customers |
| Flipkart Axis | Up to 5% | ₹500 | Flipkart, Myntra, dining |
| StanChart Smart | 2% online, 1% offline | ₹499 | Overall cashback savings |
| Kotak Mojo | 1.25% online | ₹1,000 | Online & offline mix |
Who Should Get a Cashback Credit Card?
You should consider applying for a cashback credit card in India if you:
- Shop frequently online or use credit cards for daily purchases
- Pay bills and recharge services using digital platforms
- Want instant monetary value instead of redeemable reward points
- Seek a simple, transparent way to save money without extra effort
Things to Keep in Mind Before Applying
- Check Your Credit Score
Most banks require a minimum credit score of 700 or above for premium cashback cards. - Read the Terms and Conditions
Some cards have exclusions on fuel, rent payments, or wallet loadings. - Avoid Revolving Credit
Cashback benefits can be nullified if you pay interest by carrying forward balances. - Match the Card to Your Lifestyle
Choose a card that rewards your most frequent spending categories.
How to Apply for a Cashback Credit Card
You can apply through the official websites of the banks or use third-party comparison sites. Required documents typically include:
- PAN card
- Aadhaar card or address proof
- Income proof (salary slips, ITR)
- Passport-size photograph
Approval is often instant or within a few business days if you have a good credit profile.
Frequently Asked Questions
Q1: Do cashback credit cards have expiry for cashback?
Most cards credit cashback automatically to your statement. Some banks may have a redemption validity for accumulated cashback points.
Q2: Can I have multiple cashback cards?
Yes. Many savvy users carry 2–3 cards to maximize benefits across different categories.
Q3: Are cashback cards better than reward points cards?
Cashback cards are better if you prefer straightforward savings. Reward point cards may offer better value if you redeem strategically for travel or gifts.
Conclusion
In 2025, there are multiple cashback credit cards in India offering strong value for everyday transactions. Whether you’re a frequent online shopper, a bill payment enthusiast, or simply someone who wants to save money while spending, there’s a cashback card for you.
Before applying, analyze your monthly spending habits and choose a card that aligns with your needs. When used wisely, these cards not only offer convenience but also reward you financially for your routine expenses.