Student credit cards can be an excellent tool for students to learn about financial responsibility and build credit. Currently, state governments have also introduced student schemes such as West Bengal Student Credit Card Scheme and Bihar Student Credit Card Scheme, under which they provide student loans at subsidized rates to help students graduate without any financial constraints. Since students generally do not make money, student credit cards are not suitable for generating income.
Eligibility Criteria for a Student Credit Card
There are some general criteria that applicants must meet to be eligible. For example, the applicant must be over 18 years of age. Eligibility criteria may vary from bank to bank.
It’s important to note that Indian “student credit cards” offer minimal services. However, banks offer financial aid to students in the form of student loans, secured credit cards, and student currency cards.
To take advantage of these opportunities, you must meet the established criteria. Note. No proof of income is required when applying for a student credit card, accessory card, or secure credit card. However, if you are a student and have an income (with a permanent job), some banks may be interested in offering you a regular credit card. You will need to provide proof of payment such as payroll, ITR, bank statement, etc.
How to Apply for Student Credit Card
The student card application process depends on the type of credit card you are looking for.
Supplementary Card: If you are 18 years of age or older, you can ask your immediate family members to apply for an additional card.
The process is relatively fast, and only essential KYC documents are required. Secured Credit Card: You need to open a fixed deposit account with a bank to get a secured credit card. If you already have a fixed deposit account, ask your bank to provide you with a credit card protected from it.
Credit Cards and Student Loans: You can use a student credit card at banks that offer credit cards for loans. A famous example is the SBI Student Plus Advantage credit card. To provide financial aid to students, banks offer students credit cards for school loans or prepaid cards that work similarly to student credit cards.
Some of these cards are listed below.
The SBI Student Plus Advantage Card is a student-only credit card. You can only use this card if you are a State Bank of India Education Loan client or if you have an FD at any SBI branch.
Annual tax exemption for spending over Rs. The ICICI Bank Student Forex Credit Card is a prepaid card that works like a credit card. The membership fee for the card is Rs.
Card protection plus insurance worth Rs. Liability insurance for forged/lost cards up to Rs. You can quickly get a secure credit card if you have a fixed deposit. A secured credit card is a good option if you are a student looking for a loan and want to earn interest on a fixed deposit.
As a rule, the credit limit for these credit cards is 80 to 90% of the loan amount. However, this may vary between all credit card providers. Some of these credit cards are listed below.
Flexible plans FD Rs. You can also top up your fixed deposit with a total amount of Rs.
Welcome bonus of 500 bonus points when you spend Rs. At an annual cost of Rs. Lost card liability insurance worth Rs. Annual Expenditure Tax Exemption of Rs.