Money in bank in 24 hours

Apply now

What is credit card against FD? How to get a Credit Card Against FD?

  • Highlights

  • A credit card against FD is a secured credit card

  • It is ideal for those with low income and credit score

  • It usually has a lower interest rate and credit limit

  • Use it to build your credit score and upgrade to a SuperCard

Credit cards make purchases and payments easy and convenient. Apart from letting you make credit purchases, some credit cards like the Bajaj Finserv RBL Bank SuperCard also offer interest-free emergency loans, interest-free ATM withdrawals, and conversion of purchases into EMIs.

When looking for a credit card, you may have come across the term ‘secured credit card’ too. If you are wondering how different it is from a regular, unsecured credit card, read on to find out.

What is a secured credit card?

Despite the benefits that a credit card offers, you can only avail one if you meet the criteria put forth by the issuer. Not only does this help the issuer gauge your repayment ability, but it also determines your credit limit.

However, having low or inadequate income shouldn’t stop you from availing a credit card.

In case you have a low salary or aren’t working, you can apply for a secured credit card simply by pledging an approved asset such as a fixed deposit. In case you default on your payment towards an instant credit card against FD, the issuer will have the right to take over your investment.

Experience the benefits of 4 cards in 1 with your pre-approved SuperCard - Apply Now

 

Features of a credit card against FD

  • A credit card against FD is easy to qualify for as issuers require you to submit minimal documentation.

  • In order to qualify for this secured credit card, you are required to pledge a fixed deposit that meets the minimum value criterion as prescribed by the financial institution.

  • Issuers require you to pledge an FD that has a minimum tenor of 6 months for a credit card.

  • The credit limit for a credit card against FD is usually 75% to 85% of the fixed deposit amount.

  • Typically, a credit card against FD offers all the usual features such as reward points and cashback.

  • Since a credit card against FD has a low credit limit, you can use it to build a good credit score by managing it well. This will help you transition to a regular credit card at competitive terms when your income increases.

  • Repayment begins once the course is complete and you secure a job

  • Even though you pledge your fixed deposit as collateral with the credit card issuer, you will still continue earning interest on FD at the applicable rate.

Additional Read: Credit Card Benefits

How can I get a credit card against FD?

To apply for a credit card against FD, you are required to have a fixed deposit with your preferred issuer. If you already have an FD with the issuer, you can apply by visiting a branch or the issuer’s website.

Which banks provide credit card against FD?

Currently, only banks are allowed to offer credit card against FDs in India. However, the Payments Council of India (PCI) has recently suggested that the RBI allow NBFCs to issue credit cards as well. In the meanwhile, you can make use of SuperCard, Bajaj Finserv and RBL Bank’s credit card.

Who should get a credit card against a fixed deposit?

Given the features of a credit card against FD, this card is extremely suitable if:

  • You are a first-jobber

  • You have no income proof

  • Your credit score is low or you don’t have one

  • You are retired and don’t earn a regular income

  • You have been denied an unsecured credit card by issuers on other grounds

Are interest rates on secured cards lower?

Since a credit card against a fixed deposit is secured, issuers charge a relatively lower interest rate as compared to unsecured credit cards, as their risk is lower.

Eligibility criteria to apply for a credit card against FD

Though each issuer has its own eligibility terms to secure a credit card against FD, these are the common ones.

  • You should be at least 18 years of age

  • Your FD’s value and tenor should match the minimum amount and tenor stated by the issuer

Once you start earning an adequate income, you can upgrade to a feature-rich credit card such as a Bajaj Finserv RBL Bank SuperCard. It serves as a 4-in-1 credit card, allowing you to make interest-free ATM withdrawals for up to 50 days and borrow an interest-free emergency loan for up to 90 days. In fact, you can even convert purchases of over Rs.3,000 into easy EMIs. Benefit from easy eligibility criteria and access these benefits with a SuperCard instantly. Remember to check your pre-approved offer to accelerate the application process further!

Additional Read: All you need to know about the Supercard.

Pre-Approved Offer

Please enter your first name
Please enter your last name
Please enter 10 digit mobile number

I authorize Bajaj Finserv representative to call /SMS towards this application and other products/services. This consent overrides my registration for DNC/NDNC. T&C

How would you rate this article

 Please let us know why?

What did you dislike?

What did you dislike?

What did you like?

What did you like?

What did you like?