The use of Credit cards in India has been showing upward trends day-by-day. There were days when people of India are afraid to own a credit card, but as per the recent declaration by Reserve Bank of India (RBI), India nearly has 29.8 million credit cards as of March 31, 2017. In a country, where people prefer to use cash instead of cards during transactions, this whopping number of credit card users is a really big deal.
Data Source: The Atlast
The first credit card was introduced in India by Andhra Bank in 1981.The concept of Students Credit Card is not new in Western countries. But for a developing country like India, the concept is still to reach many corners of the country.
Students are always dependent on their parents for financial needs. Be it for educational purposes or for any other personal expenses, students have to rely on their parents. This means that they have to carry cash all the times to meet all their financial needs. The burden of carrying cash all the time can be reduced with the help of a credit card.
Think of a situation, when you don’t have cash in hand, none of your friends are there, from whom you can borrow money and your bank account is also empty to use your debit card, but you are in need of money to purchase something! If you have a credit card, the situation will be less complicated. By using the credit card, you can purchase or pay for something instantly and pay the amount to the bank after certain days (Probably 50 days without interest).
As a student, you might have thought of owning a credit card at least for once. But as you have no source of income, you might have left thinking for the same. But the question remains the same – Is there any way that a student can get credit cards in India? The answer is yes. Today, banks offer credit cards for students too. Credit cards which were earlier offered by banks to financially strong people only are now being given to students. If you are 18 years old and studying at the graduate or post-graduate level, then you are eligible to hold a credit card in your hand.
Today, banks offer credit cards for students too. Credit cards which were earlier offered by banks to financially strong people only are now being given to students. If you are 18 years old and studying at the graduate or post-graduate level, then you are eligible to hold a credit card in your hand.
The credit cards offered to students have many features like low-interest rates, no income eligibility criteria, no joining or annual fees, low cash limit etc. The cards have easy and simpler joining formalities. Only you have to submit is your proof of residence and proof of enrollment in an educational institute.
Ways to get student credit cards in India –
1. Credit card against fixed deposit:
The first way to get your credit card is – Credit Card against Fixed Deposit. If you have a fixed deposit in your bank, then you can contact the bank to apply for a credit card against the fixed deposit. The process of getting a credit card through a fixed deposit is much easier. But, in case you don’t have a fixed deposit, the bank will ask you to open a fixed deposit of a particular amount, probably around Rs.20,000. After depositing the amount you will get your credit card within few days. The credit limit of the card is fixed up to the amount of the fixed deposit. Higher the amount of the fixed deposit, higher the credit limit
of the credit card.
2. Add-on credit card:
The second way to get your credit card is to get as an Add-on credit card. If your parents or someone of your family have a credit card, then you can apply for a credit card as an add-on card. But the credit card holder might be your parents or the family member, should have an active card with strong credit and repayment history. Without which bank may not provide the add-on card to you.
3. Credit Card as per transactions status:
Bank can also offer you a credit card checking your last 6 months transactions with that particular bank. If the transactions are healthy enough, then you might be eligible to ask for a credit card.
Documents required to apply for a student credit card in India:
- PAN card which is needed by some of the companies
- Birth Certificate of the student
- Proof of residence
- College Identity card
- Two passport size photographs
Best credit cards for students in India
- SBI Student Plus Advantage Card
- ICICI Bank Student Travel Card
- Axis Bank – ISIC Forex Card
- HDFC ForexPlus Card
- HDFC Multicurrency Card
- HDFC ForexPlus Chip Card.
We hope that it has cleared your doubts regarding how can a student get a credit card in India! But also remember to use your credit card wisely. Always repay the outstanding amount to the bank on time to avoid unnecessary charges. Well use of your credit card can help you to build a strong credit history which will certainly help you in future to avail bank
loans and other financial services.