Credit Card Balance Transfer — How It Works & Best Offers 2026

Escape the Interest Trap

If you're paying 36-42% interest on an outstanding credit card balance, a Balance Transfer lets you move that debt to another card offering 0% or low interest for a promotional period (typically 3-6 months).

How It Works

1. Apply for a balance transfer with the new bank
2. The new bank pays off your old card's outstanding
3. You repay the new bank at a lower rate (often 0-2% per month)
4. A processing fee of 1-2% applies on the transferred amount

Best Balance Transfer Offers

Bank	Promotional Rate	Duration	Processing Fee
HDFC Bank	0.99% per month	3-6 months	1%
ICICI Bank	0.75% per month	3 months	1%
Axis Bank	1.25% per month	Up to 6 months	1-2%
SBI	1.49% per month	3-6 months	1%

Important Warning

Balance transfers save money ONLY if you repay the full amount within the promotional period. After that, the regular 36-42% rate kicks in. Don't use the freed-up limit on your old card for new spending.