Is the LIC Classic Credit Card Worth It?
Enter what you spend where this card pays more, and the benefits you would use. See what it is worth to you in rupees, after its fee.
- 207Cards to check
- FreeCost
- Utility bills card
- No annual fee
- 0.6% on most spends; 1.2% only at partner merchants
- 4 lounge visits a year
- Pays in reward points
- utility bills only at LIC insurance premium payments made on LIC of India's official website: 1.2% back
- anyone who wants no annual fee, ever
- flyers: 4 airport lounge visits a year
- spending abroad: 0% markup, most cards add 3.5%
- most of your spending is fuel, rent, insurance or foreign spends: those earn nothing on this card
- you pay mostly by UPI: a Visa or Mastercard card cannot pay by UPI
- you rarely spend on LIC insurance premium payments made on LIC of India's official website: the 1.2% rate applies only there, everything else earns 0.6%
Your spend a month, by kind
Terms on the normal rate: 3 RP per ₹125 (~0.6%) on all other spends, outside the Essentials ceiling; points expire 3 years after being earned
Total on the card: ₹0 a month
Abroad and benefits
Every rate on this card, and what your spend earns
| Spend category | Rate | Monthly cap | Where it applies | Your spend earns |
|---|---|---|---|---|
| UPI payments (scan and pay) | Earns nothing | - | a Visa or Mastercard card cannot pay by UPI | - |
| Online shopping | 0.6% | No cap | The card's normal rate | - |
| Dining and food delivery | 0.6% | No cap | The card's normal rate | - |
| Groceries | 0.6% | ₹75, shared with other bonus rates | All merchants in the categoryTerms: 3 RP per ₹125 (~0.6%); shares one 300 RP a month Essentials ceiling with utilities, education and government | - |
| Travel: flights, hotels, trains | 0.6% | No cap | The card's normal rate | - |
| Fuel | Earns nothing | - | earns nothing on this card | - |
| Bills and recharges | 0.6% | ₹75, shared with other bonus rates | Anywhere else in the categoryTerms: 3 RP per ₹125 (~0.6%) on utility bills away from LIC's own site; shares one 300 RP a month Essentials ceiling with groceries, education and government | - |
| Bills and recharges, only at listed merchants | 1.2% | No cap | Only at: LIC insurance premium payments made on LIC of India's official website (licindia.in)Terms: 6 RP per ₹125 (~1.2%) on LIC premium payments at licindia.in; 1 RP = ₹0.25. OUTSIDE capGroup essentials, CONFIRMED -- IDFC scopes that ceiling by MCC and the published list carries no insurance MCC. Only 5 premium payments a cycle earn; no field models that, so this is a ceiling. | - |
| Rent | Earns nothing | - | earns nothing on this card | - |
| Insurance premiums | Earns nothing | - | earns nothing on this card | - |
| School and college fees | 0.6% | ₹75, shared with other bonus rates | All merchants in the categoryTerms: 3 RP per ₹125 (~0.6%); shares one 300 RP a month Essentials ceiling with groceries, utilities and government | - |
| Wallet top-ups | 0.6% | No cap | The card's normal rate | - |
| Taxes and government payments | 0.6% | ₹75, shared with other bonus rates | All merchants in the categoryTerms: 3 RP per ₹125 (~0.6%); shares one 300 RP a month Essentials ceiling with groceries, utilities and education | - |
| Spend abroad or in a foreign currency | Earns nothing | - | earns nothing on this card | - |
| Everything else | 0.6% | No cap | The card's normal rate | - |
Card data sourced via CardAdvisor.in, India Credit Card Facts, CC BY 4.0, adapted by SkyloFin.
Common Questions
When is a credit card worth its annual fee?
When the rewards you actually earn in a year are more than the fee plus 18% GST, or when you spend enough for the bank to waive the fee. This calculator works out both from the card's own published terms.
Why is GST added to the fee?
Card fees carry 18% GST, so a ₹1,000 fee costs ₹1,180. Where the bank already quotes the fee with GST, it is not added twice.
What does 'capped' mean?
Many cards limit the reward you can earn in a month in a category. Spending above the cap earns nothing extra, so the calculator stops counting there.
Is a lifetime free card always better?
Not always. A paid card with higher rewards can leave you with more once you spend enough. The break-even line shows the monthly spend where that starts.
Guides in Plain Words
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