9 Easy Steps To Apply For A Student Credit Card In India
Introduction
Are you a student looking to build a solid financial foundation for your future? Look no further than a student credit card. These robust financial tools offer a unique opportunity to learn about money management and build credit while still in college. With rising education costs and the increasing importance of credit scores, having a student credit card is more important than ever. These credit cards offer a range of benefits and perks that can help you save money from cashback rewards to exclusive discounts.
Here are the 9 easy steps to apply for a Student Credit Card in India. These steps will guide you through the entire process including student credit card eligibility, documents required, and online application. This article will also share information on student credit card offers and key features of the Top 10 student credit cards in India .
Table of Contents
What is a Student Credit Card
A student Credit Card is a credit card specially designed for students. It is issued to a student who is 18 years of age or beyond. The features of these credit cards are customised for students. Most banks offer students credit cards with no income proof. They offer lower interest rates and and are valid for 5 years
How to Apply for a Student Credit card
A student needs to fulfill the following criteria to be eligible to apply for a Credit Card.
- The student needs to be 18 years of age and above
- The student should be a full-time student of an educational institution
- The student should hold a valid educational institutional identity card
Many banks offer student credit cards with no income proof . However, banks such as SBI offer credit cards only to students who have an educational loan with the bank. Some banks also offer credit cards against fixed deposit only.
Documents Required for Application
The following documents are required for the Application
- Proof of Age ( Birth Certificate/School Leaving Certificate )
- Proof of Permanent Address ( Aadhar Card/Ration Card )
- Proof of Identity ( College ID, Aadhar Card )
- Pan Card
- Passport Size Photograph
Since the students have no steady source of income, the credit limit offered by the banks is lower as credit risk is high. In some cases, banks offer credit cards only against a Fixed Deposit as collateral security. The credit limit in such cases doesn’t exceed the amount invested in the Fixed Deposit.
Can a Student Apply Online for the Credit Card
A student can apply online for a credit card. One needs to download the app or access the web portal of the selected bank and follow the instructions as stated:
- Click on the respective bank links and register by providing relevant details and creating a login ID and password. This option can be chosen regardless of whether the student wishes to pursue education in India or abroad
- Enter all credentials and details required for loan application after Login
- Submit the application along with relevant documents.
If the application and documents submitted are in order, then the application for a loan will be sanctioned. While most banks allow students to apply online, some may require a personal visit to the designated bank branch and submit the loan application directly.
Pros And Cons Of Student Credit Card
Pros :
- Builds Good Credit Score: After a student graduates or passes out of college, buying a car, renting an apartment or even buying a house needs significant transactions that require a credit check. Lenders assess creditworthiness by checking credit scores. A good credit score greatly helps in getting loans for these big-ticket expenses. Using a credit card wisely and not carrying too much debt is an excellent way to have a positive credit history.
- For Emergency Use : These credit cards offer a small cushion in case of emergencies or eventualities that one can’t control. One can make part payment immediately if needed However, one needs to repay dues on time so that there is no negative effect on the credit score.
- Tracking spending habits: Students can also benefit by learning to track their spending – How to spend money and where to spend it. Every purchase is tracked by the credit card. A student can log in to his/her account to check spending over time. In fact, some student credit cards also allow parents to log in and keep check on purchases.
- Rewards and Perks : Many student credit cards offer attractive perks such as exclusive cashback, discounts and reward points for responsible card usage which have long-term financial benefits
Cons :
- High Interest Rates : Student credit cards come with high interest rates which lead to significant costs if payments are not done by due dates.
- Uncontrolled spending : Without financial budgeting and self discipline, Students tend to overspend and find themselves in a cycle of debts that become difficult to overcome over time. Accumulating debts are one of the biggest risks of credit cards
- Credit Score Impact : If a student misses due date payments or mishandles a credit card by maxing out the credit limit, it can negatively impact credit score, making it harder to secure favorable loan terms in the future.
- Fees and Penalties : Late payments of credit card dues and spending beyond credit limits can result in extra fees and penalties which are a great financial burden on students since they have a limited income
Top Ten Student Credit Cards In India
Key Features Of Student Credit Cards
Table of Contents
SBI Student Plus Advantage Credit Card
Key Features :
- No Joining Fees ( One time )
- This credit card is only for the education loan customers of SBI.
- SBI Student Plus Advantage Card is an international card, which can be accessed in over 24 million outlets across the globe, including 3,25,000 outlets in India.
- 1 reward point for every Rs.100 spent redeemable against departmental and grocery spends
- 2.5% Fuel Surcharge waiver on Fuel spends between Rs 500 and Rs 3000
Kotak Silk Inspire Credit Card
Key Features :
- Joining Fees is Rs 599
- Get up to 5x reward points on every Rs.100 spent on clothing.
- Earn 1 reward point on every Rs.200 spent on any other categories.
- 2.5% Fuel surcharge waiver
- 8 free PVR tickets every year.
HDFC Bank ISIC Student Forex Plus Card
Key Features :
- Card issue charges is Rs 300
- A Complimentary globally recognised ISIC Identity Card.
- The ISIC card has been endorsed by the United Nations Educational, Scientific and Cultural Organization (UNESCO)
- The card is recognised by universities, academic institutions, student unions, national governments, financial institutions and ministries of education around the world
- The HDFC Bank ISIC Student forex card is not only a forex card but also an internationally recognised Student identity card.
HDFC Multicurrency Forex Plus Card
Key Features :
- Issue Fees is Rs 500/-
- Road/Rail Accident Insurance (Death cover only) coverage up to INR 200,000/-
- Air Accident Insurance (Death cover only) coverage up to INR 5,00,000/-
- Loss of checked-in baggage cover coverage up to INR 20,000
- Loss of personal documents (only Passport reconstruction) coverage up to INR 50,000/-
- Loss of Cash in Transit coverage up to INR 60,000/-
Bank of Baroda Financial Prime Card
Key Features :
- Joining Fees is Nil ( 1st Year )
- Annual Fees are Nil
- Guaranteed issuance against FD of Rs 15,000 or more without any income proof
- 1 reward point for every Rs.100 spent redeemable as cashback
- 1% Fuel Surcharge waiver on Fuel spends between Rs 400 and Rs 5000
ICICI Bank Student Prepaid Forex Card
Key Features :
- Joining Fees is Rs 499
- Annual Fees is Rs 199 from the 2nd Year
- Annual Benefits like ISIC Membership voucher
- Card protection plus insurance
- Lost card/ counterfeit card liability coverage up to Rs 5,00.000
Axis Bank Insta Easy Credit Card
Key Features :
- Joining Fees is Rs 500
- Annual Fees is Nil
- 1% Fuel Surcharge waiver on Fuel spends between Rs 400 and Rs 4000
- 15% Dining Discounts at selected partner restaurants in India
- Conversion of Purchases into EMI on transactions above Rs 2500
Key Features :
- Eligible for students residing in West Bengal only
- Joining Fees is Nil
- Loan provided against credit card for academic and non-academic purposes
- Nominal Rate of Interest @4%
- Sanctioned Loan amount up to 10 Lakhs
Key Features :
- Eligible for students residing in Bihar only
- Joining Fees is Nil
- Loan provided against credit card for academic and non-academic purposes
- Sanctioned Loan amount up to 4 lakhs
- Nominal Rate of interest @4% for boys
- Nominal Rate of interest @1% for girls/persons with disabilities and transgenders
Key Features :
- Eligible for students residing in Jharkhand only
- Joining Fees is Nil
- Loan provided against credit card for academic and non-academic purposes
- Sanctioned Loan amount up to 15 lakhs
- Nominal Rate of Interest @ 4%
Conclusion
In Conclusion, a student credit card can be a valuable tool for learning financial discipline and building a credit history. However , these credit cards come with certain riders such as high interest rates and potential debt at an early stage of life. Therefore, a student needs to be judicial and mature to handle these credit cards. Remember, Credit cards are not free money. One needs to keep credit utilisation low and pay bills on time to avoid pitfalls . Credit cards needs to be used wisely and responsibly.
FAQs
I am a student. Am I eligible for a student credit card?
Yes. you can get a credit card as a student . If you are 18 years old or above , you can apply for a student credit card
Can I get a student credit card without income ?
Yes. A student can get a credit card without income . However, some banks offer credit cards against fixed deposits or a savings account only.
Do I need a co-signer to get a student credit card?
Yes. A student needs a co-signer to get a credit card. The co-signer is someone with a good credit score and income who guarantees that credit card dues will be paid if a student defaults.
Is student credit card beneficial
Student credit cards are beneficial as they offer a range of rewards and perks that can help students to save money and make the most of their college years. They also provide a world of opportunities, from cashbacks to exclusive discounts and fraud protection.
What is the credit limit on a student credit card?
Student Credit Cards offer lower credit limits. Typically, these credit cards come with credit limits of 15000/- only.
Are there any fees associated with student credit cards?
Most Student credit Cards does not charge any annual fees .