Credit Card Renewal Fee: Meaning, Waivers, Zero-Fee & Lifetime Free Terms

Credit Card Renewal Fee: A renewal fee (also called an annual fee) is the yearly charge levied by the credit card issuer to keep the credit card active. It is billed after the first year (sometimes waived in the first year) and varies depending on the type of card.

‘Credit Card Renewal Fee’ in some of the Indian Languages

What is a Credit Card Renewal Fee?

A credit card renewal fee is an annual charge imposed by banks to maintain your card account. It is distinct from the joining fee, which is a one-time payment made when the card is issued. While some cards waive the renewal fee in the first year, most require payment from the second year onward.

Difference between joining fee and renewal fee

• Joining fee: One-time fee at the time of card issuance.
• Renewal fee: Recurring yearly fee to keep the card active.
  

How Much is the Renewal Fee for Credit Cards in India?

Typical fee range (₹500–₹10,000+)

• Entry-level cards: ₹500–₹1,500
• Premium/travel cards: ₹3,500–₹10,000+
  
  

Renewal fee for premium vs entry-level cards

• Entry-level cards: Affordable with waiver options.
• Premium cards: Higher fees, sometimes no waiver; comes with exclusive benefits.
  

When Can Renewal Fee Be Waived Off?

Annual spending milestone waiver

Many banks waive renewal fees if you meet a minimum yearly spend requirement, e.g., ₹1–2 lakh.

Zero renewal fee cards in India

Some credit cards, especially lifetime free variants, never charge a renewal fee.

Negotiating with banks for fee waiver

It’s often possible to request a waiver by contacting the bank, particularly for loyal customers with good repayment history.

Is Paying Renewal Fee Worth It?

Benefits vs costs

• Pros: Access to premium rewards, higher credit limits, travel and lifestyle benefits.
• Cons: Annual cost may outweigh benefits if you don’t utilize the card’s perks.
  

Example Renewal Fees of Popular Cards

FAQs on Credit Card Renewal Fee

Q1: What is a credit card renewal fee?

Ans: It’s the annual charge for keeping a credit card active, billed from the second year onwards.

Q2: Can renewal fees be waived?

Ans: Yes, most banks waive it if you meet annual spending milestones (e.g., ₹1–2 lakh spends).

Q3: Which credit cards in India have zero renewal fee?

Ans: Many entry-level and lifetime-free credit cards come with no renewal fee.

Q4: Is the renewal fee the same as joining fee?

Ans: No, joining fee is one-time at issuance, while renewal fee is charged yearly.

Q5: How do I avoid paying renewal fees?

Ans: Use zero-fee cards, meet spending conditions, or request a waiver from your bank.