With banks offering student credit card without the applicants needing to provide any employment documents or Income Tax returns, there must be some doubt as to how a student can apply for credit card.
Below, we discuss the ways how a student can get a credit card in their name:
- Against fixed deposit: A student can look to avail a student credit card based on the fixed deposit that he/she might have in his/her name. However, banks tend to have a minimum fixed deposit amount against which the credit card can be applied for.
- Through add-on card: Another way to get a student credit card is by requesting any of the family members who have a credit card to apply for an add-on in the student’s name. However, for that, the member who is requesting for the add-on card must have a good credit history.
- Strong savings account: An individual can also avail a student credit card if they have a strong savings history from which they intend to apply. However, this facility is provided to the customers by only a few banks.
Eligibility And Documents Required To Apply For A Student Credit Card?
To be eligible for a student credit card one needs to be:
- Above 18 years of age
- Must be a college going student.
As for the documents, one needs to provide:
- Birth certificate
- Identity card issued by the college/university
- Proof of residential address
- Recent passport size photograph
- PAN card
Which Banks Provide Student Credit Cards In India?
Though the concept of student credit card is quite new in India, there are banks that are offering the cards to the students. Some of the banks that are offering the cards in the country are:
- State Bank of India
- ICICI Bank
- Axis Bank
- HDFC Bank
How Are Student Credit Cards Different From Other Credit Cards?
Unlike other credit cards, student credit cards do not come with a lot of features. Moreover, the cards have a low monthly credit limit and come with low-interest rate and do not come with a long interest-free payment tenure.
Features of Student Credit Cards 2018:
Credit Limits: Student credit cards have a lower credit limit compared to other credit cards offered by banks. On average, a student credit card has a credit limit of Rs. 15, 000. This is done to ensure that the cardholders do not incur debts as a result of unrestricted spending.
Card Validity: Student credit cards are generally valid for a period of 5 years from the issue date, as compared to regular credit cards which have a 3 year validity period.
Duplicate card free of cost: If the student credit card holder misplaces their card or it is stolen, a duplicate card would be issued free of cost or at a very nominal charge.
Waiver of fees: Student credit cards often do not have a joining fee and have very low annual charges, making it easier for students to maintain the cards.
Documentation: Students credit cards do not require exhaustive documentation, unlike most other credit cards. The bare minimum of documentation is required when applying for a card.
Special deals and rewards: The student cards come bundled with rewards and loyalty programs that offer cashback or cash points when a certain amount is spent using the card. The cards also have special offers and discounts on services as well as purchases worldwide.
If the cardholder wishes to, the student credit card can be upgraded to a regular credit card anytime during the card’s validity.
As seen above, a student credit card has a number of features that distinguish it from other cards offered. Some of the banks that offer student credit cards are mentioned below:
- SBI Student Plus Advantage Credit Card:
- HDFC Bank ForexPlus Card:
- ICICI Bank Student Travel Card:
- HDFC Multicurrency Platinum ForexPlus Chip Card
SBI Student Plus Advantage Credit Card:
With the SBI Student Advantage Plus Credit Card, students can learn how to manage their money prudently. The card comes with an array of features designed exclusively for the student demographic, such as the ability to convert all purchases to EMI’s, fuel surcharge up to 2.5 % on all fuel spends charged to the card etc.
The card also has a good rewards program, with every Rs. 100 spent earning the cardholder 1 cash point, which can be redeemed for a range of gifts or used to pay off credit balance, if any.
The card also comes with a low interest rate of just 2.25% per month.
In addition, railway tickets booked using the card will be delivered to the cardholder’s doorstep, making travel plans and arranging tickets quick and convenient.
HDFC Bank ForexPlus Card:
The HDFC ForexPlus Card is a boon for students who study abroad and require easy access to funds in multiple currencies. This offering by HDFC is a prepaid card which works similar to a credit card, where the amount is debited directly from the card.
For students living abroad, currency fluctuations are a constant problem. This card protects cardholders from this as money can be deposited in the card in all major foreign currencies. Withdrawals and transactions made through the card would also be protected from exchange rate fluctuations if the transactions are conducted in the currencies that the card is available in.
ICICI Bank Student Travel Card:
With the ICICI Bank’s travel card for students, paying fees or meeting expenses when studying abroad becomes an easy process. Payments can be made online using a secure channel and daily expenses can be paid for at all stores that accept MasterCard.
The card can be topped up from an account in India periodically and also comes with travel insurance as well as membership to the International Student Identify Card, through which the cardholder can avail exclusive discounts and offers.
Cardholders will also benefit from preferential foreign exchange rates.
HDFC Multicurrency Platinum ForexPlus Chip Card:
With this offering from HDFC, studying abroad can comfortably access their funds in 20 foreign currencies. Currencies can be managed through the card and money transferred through secure online wallets.
Cardholders are also protected against fraud and accidents up to Rs. 5 lakh each.
