A student credit card scheme has been introduced for college students. It is specially designed according to the specific needs of students so that they can manage their expenses.
Whether you are studying in India or abroad, if you are 18 or 18 plus, you can apply for a credit card to manage your daily expenses, such as buying books related to your course, transportation, or other extracurricular activities. This card is valid for five years, and it charges low interest. In this article, you will get information on how to get a student credit card in India, so keep reading – TWN
In India, you do not need employment or income tax documents to apply for a student credit card as you are still a student. Now you must have thought, how can I get a credit card without employment documents?
So, here is the answer:
How to apply for Student Credit Card in India?
Students can apply for a credit card with a fixed deposit:
If a fixed deposit is in your name, you can use it for a student credit card. You can apply for this card either online or offline.
Students can apply for a credit card as an add-on card:
If any of your family members have a credit card, you can get a student credit card as an add-on card to their card. However, it will be available only if the primary cardholder has a good credit history.
Students with a Savings Account can apply for a credit card:
Some banks offer student credit cards based on their account history. If you have a savings account, you can use it to apply for a student credit card with a fixed monthly average balance.
Student Credit Card Application Process:
Like any other credit card application, you can apply for a student credit card, both online and offline. However, some banks allow only online applications, and some only allow offline applications. Hence it is imperative to discuss with the bank representative before starting the application process. In addition, you must meet the Student Credit Card Eligibility Criteria and submit all the required documents along with the duly filled application form to apply for this card.
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What are the Eligibility Criteria for Student Credit Cards?
- The age limit of students should be 18 years and above.
- You must be enrolled in a college or university.
- The credit card issuer may ask the student’s parents/guardians to open a fixed deposit account to get the card.
- Some banking organizations make it mandatory to open a savings account with a minimum quarterly balance.
- Some banks offer student credit cards only to those who have taken education loans with that bank.
Documents Required for Student Credit Card:
Students cannot show any salary slip or any income proof. So, there are some valid documents required for a student credit card:
- Pan Card
- Aadhar Card
- voter id
- driving license
- voter id
- Ration card
- driving license
- Utility bills for the last three months
- school certificate
- birth certificate
- voter id
College/University enrollment proof:
- college id
- admission slip
- Study certificate from college/university
Features and Benefits of Student Credit Card:
- Student credit cards come with a limit so that you do not overspend and fall into the debt trap.
- Student credit cards come with a low cash withdrawal limit so that students can use cash wisely and only for emergencies.
- Student-friendly credit cards provide convenience and quick access or availability of funds.
- Student credit cards are available at a low-interest rate so that students can repay the loan easily.
- Student credit cards have a validity of five years.
- Student credit cards can be converted into standard credit cards once you complete your college education.
- You can increase the credit limit based on your employment and income status.
Benefits for college students holding credit cards:
- Student credit cards allow students to manage their day-to-day expenses on their own.
- Student credit cards help you learn the importance of paying dues on time from a young age.
- Prompt repayment of student credit card dues helps build a good credit score for the students.
- Students can earn reward points and discounts on transactions.
- Students do not have to pay any fee to apply for a student credit card.
Student Credit Card Fees and Credit Limit:
The credit limit on a student credit card is usually low, around ₹15,000 (the amount may vary according to the banks), and the card is valid for five years. The card limit is fixed so that students do not spend too much money.
Students Credit Card Offers:
College students can enjoy student credit card offers like cash back and discounts. Students get access to special discounts on movie tickets and events, fuel surcharge waivers, interest-free ATM transactions, etc.
Student Credit Cards Available in India:
To provide financial assistance to the students who want to pursue higher education, the State Governments of various Indian states have provided credit cards to college students.
For example, in 2016, the Government of Bihar introduced the Bihar Student Credit Card for students who have passed their class 12 board exams. You can apply for a maximum loan of Rs 4 lakh using the Bihar Student Credit Card. Similarly, in 2021, the state government of West Bengal introduced the West Bengal Student Credit Card scheme, under which students who have passed class 10 board exams and want to pursue higher studies can get loans up to Rs. 10 lakh.