In order to avail a credit card an individual needs to earn a minimum amount of salary annually and a good credit score. For individuals who do not have a decent credit score can now easy get a secured credit card by RBL bank as well as many other banks.
A secured credit card is one that is given by banks against fixed deposits. In this situation the individual provides a collateral security to the bank to avail a credit card and the credit limit is set based on the amount of fixed deposit held by the bank.
Credit card against FD is suitable for individuals who have:
- Low or no credit history.
- No not meet the income criteria.
- Just started earning.
- Liven in the area that the lender has blacklisted etc.
Features of RBL Credit Cards against Fixed Deposit:
Minimum Amount –Minimum amount of FD is Rs. 20000.
Credit Limit –Credit limit depends upon the amount of FD. Usually, RBL offers 80% to 85% of the deposit amount as credit limit.
Minimum Documentation – To apply for this type of RBL credit card too many documents are not required.
Minimum Tenure – The minimum tenure of the FD that you are giving as security to the bank should be 6 months.
Interest Free Period – RBL bank offers an interest free period to its customers of about 48 to 55 days.
Rewards –It also offers multiple rewards such as reward points, cash back, etc. to the customer.
Interest on Fixed Deposit –The cardholder will continue to earn interest on their FD.
How to Avail an RBL Credit Card against Fixed Deposit?
The process of availing an RBL credit card against FD is quite simple. One has to first open a FD with the bank with at least 20,000 Rs. In the FD account and apply for the credit card. If you already have an existing FD with the bank with sufficient funds, you do not need to open a separate one as the bank will accept the existing FD as security. Once the FD account is opened, you can apply for the RBL credit card and can also check the RBL credit card status online on its official web portal.
Other banks that provide credit card against FD
Some of the other banks that provided Credit Card against FD are Axis Bank, ICICI Bank, HDFC Bank, etc. For example, Axis bank’s credit card named Insta Easy Credit Card has a credit limit up to 80% of the FD amount.
- Its maximum cash withdrawal limit is 100% of its available credit limit.
- It provides the maximum interest free period of 50 days.
- It also has a fuel surcharge waiver of 2.5% on all fuel transactions.
- The bank also assures the approval on its credit card applications.
- One can also avail eDGE loyalty reward points on every Rs. 200 spend locally and about 12 eDGE points on every Rs.200 spent overseas. The customer also gets his first 100 points on his first online transaction.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.