Credit Cards have become the most important part of the financial management. However, the high interest charges, plenty of documentation and civil score often come between you and your requirements. Credit Card by a bank is offered by a bank with some particular credentials keeping the financial stability of a person in mind. However, the latest trends are allowing people for something extra on Credit Cards as well. The Credit Cards against fixed deposits are becoming very popular as the Credit Card will be issued against the saving deposit on the same bank. The requirements and the benefits of the cards under this scheme are different than the normal procedure. Banks that Providing Credit Cards Against Fixed Deposits (FD) In India.
There are set of requirements for credit card against the deposit.
- You need to open a deposit account on the same bank, you are consulting for a credit card.
- The credit limit of the credit card will be 80%-85% of the deposit account.
- The minimum amount of the deposit account is ₹
- The minimum duration of the deposit account starts from 180 days.
- If unable to pay the amount of credit card, money will be automatically deducted from the deposits.
- The interest on the deposit account remains as usual irrespective of the linked credit card.
There are many benefits of the credit cards associated with credit card against deposit account. The first and foremost benefit is the easy documentation. As you already have the deposit account on the same bank not much documents are required.
Credit card falls under unsecured loan and hence the interest rate is very high. However, with the deposit account the risks get reduced and the interest rate may fall.
If you are running with very poor civil score then credit card against deposit may give you the privilege of improving it in quick time.
You do not have the extra tension of maintaining your credit bills in emergency situation. You may take high volume of loan and then you will get good 40 days at least to repay without conceding the interest.
Banks that offer Credit Cards against Deposits
The major banks in India provide the Credit Card against the Fixed Deposit. The requirements and the benefits of these banks are more or less the same. Major banks that offer Credit Card against FD are ICICI, Axis, State Bank of India, Kotak Mahindra Bank and Central Bank of India. All these banks are pitching for the Credit Cards against FD for more secure lending and better financial management. For a bank it is always considered that Credit Card is full of risks. However, with the introduction of the scheme, banks can now rely on the outcome.
In a country like India, debt management and credit card faults are the prime concerns for financial management. The Credit Card against the FD is quite useful and beneficial for the customers who have poor records of debt management. It is equally good for those who want their debt management to be under control.