Here’s everything you need to know about student credit cards!
Student credit cards are tailored to meet the needs of students studying in colleges and universities and teach them to be financially responsible. These credit cards also provide them with the freedom and convenience of owning a credit card. Part-time students with a steady income source and a savings account can apply for student credit cards online. Additionally, if you are a student without a source of income, you can still obtain an add-on card.
These credit cards usually have a validity of 5+ years
Student credit cards come with low interest rates as compared to regular credit cards
Students’ credit cards offer low credit limits to ensure that students do not fall into a debt trap
Although the concept of a credit card for students is quite new in India, many banking institutions have begun to offer them of late. Listed below are a few of the financial institutions that offer such credit cards in India.
SBI Card
HDFC Bank
Kotak Mahindra Bank
ICICI Bank
Axis Bank
The exact features and benefits of such credit cards vary from one card issuer to another. However, the general features and benefits are outlined below.
Advantages |
Details |
Lower Credit Limit |
These credit cards generally come with lower credit limits, so students do not fall into a debt trap by overspending. |
Low Cash Withdrawal Limit |
These credit cards also have low cash withdrawal limits, so students can use them only for emergencies. |
Nominal Interest Rates |
The interest rate on credit cards for students is also low to ensure easy and convenient repayment. |
Conversion to Standard Credit Cards |
Some banks offer the facility to convert the student credit card to a standard credit card once the cardholder completes their college education. |
Credit Score Improvement |
If you, as a student, promptly repay the dues on your credit card, you can easily build a good credit score. |
Rewards and Discounts |
You can earn and redeem reward points against various eligible purchases, and get discounts against credit card transactions. |
No Exhaustive Documentation |
The process of applying for these credit cards is fairly easy, and there is generally no extensive documentation involved. |
If you want to apply for a student credit card online, then you need to know about the different options that are available. Here’s a quick overview of some of the cards that you can apply for right now.
Credit Card |
Annual Fee |
Best Features |
HDFC Bank ISIC Student ForexPlus Card |
Nil |
|
ICICI Bank Student Forex Prepaid Card |
₹199 |
|
Kotak 811 #DreamDifferent Credit Card |
Nil |
|
West Bengal Student Credit Card (WBSCC) |
Nil |
|
Bihar Student Credit Card |
Nil |
|
This credit card is ideal for students who have enrolled in foreign universities. Since the HDFC Bank ISIC Student ForexPlus Card is a prepaid card, you need to recharge the account before you use the card to make purchases. Some of the key features of this card are listed below.
Discounted access to more than 150,000 products, services, and experiences in 130+ countries
Available in USD, GBP, and EUR currencies
Comprehensive insurance benefits
The ICICI Bank Student Forex Prepaid Card is also a forex prepaid card from another leading private sector bank in India, as indicated by its name. Eligible students can apply for the card without the hassle of extensive documentation. The key features of this card include:
Joining benefits worth ₹5,000
Coverage for lost card and counterfeit card liability up to ₹5 Lakhs
Discount of 40% on excess baggage and a discount of 20% on courier services via DHL
This is a lifetime free credit card that offers a wide range of benefits. You can apply for this credit card online without any income documents. It is backed by a term deposit made by the cardholder. Check out the key features of this credit card below.
No joining fee or annual fees
2 reward points against every ₹100 spent online and 1 reward point for every ₹100 spent elsewhere
Add-on card issued if required
Launched by the government of West Bengal, the West Bengal Student Credit Card (WBSCC) offers eligible students various benefits that make it easier to pay for their purchases and meet the costs of education. The key benefits offered by this credit card include the following:
Collateral-free loans up to ₹10 Lakhs for students
Low-interest rates on the loans availed
Easy online application process
The Bihar Student Credit Card offered under the Mukhyamantri Nischay Swayam Sahayata Bhatta Yojna (MNSSBY) also helps students meet the costs of their educational supplies and other related expenses. Its key benefits include:
Loan offered via credit cards to eligible students
Nominal interest rates
Note: The aforementioned cards are not available on Bajaj Markets. Please visit the issuers’ official website for more details.
An add-on credit card is a supplementary card that is issued against a primary credit card. Typically, add-on credit cards make it easier for the primary user as well as their immediate family members to use the credit card and avail its benefits. Students can benefit from add-on credit cards issued with their parents as the primary holder.
Some of the top advantages of add-on student credit cards include the following:
Since your parents’ credit limit will generally be higher than what’s offered to you as a student, you get the benefit of a higher credit limit.
The rewards program on regular credit cards may also be more extensive. By taking on an add-on credit card as a student, you can also enjoy the exclusive rewards and benefits on the primary card.
Any transaction made using an add-on credit card is just as secure as a transaction made using a primary card.
When you apply for this credit card, you will be required to meet some basic eligibility parameters and furnish some basic documentation. We’ve highlighted the same below:
You must be at least 18 years of age
You must be enrolled in an educational institution
Birth certificate
Recent passport size photograph
Proof of residential address
Identity card issued by the college/university
PAN card
Note: These pointers are only indicative and are subject to change at the discretion of the credit card issuer.
Such credit cards usually do not have any joining and annual fees or other associated charges. However, you must contact the issuing institution beforehand to get a clear idea regarding the credit card fees and charges.
The credit card limit for these credit cards is usually low and may vary from bank to bank.
Ideally, you can pay your bills using the student card only if the biller is available in the list provided by the issuer. Major utility billers include gas, telephone, electricity, insurance, etc. When making the payment for such purposes, select the biller, provide the necessary details, and review the amount to be paid. After this, in the payment option, choose a credit card and pay the bill.
To check your credit card status, visit the bank’s official website, go to the ‘Credit Card’ section, enter the application reference ID, and click on ‘Track Credit Card Status’.
No, a student cannot hold multiple such credit cards.
No. Since students generally don’t have any income, banks that offer student credit cards usually don’t have that as a requirement. Instead, banks may issue credit cards to students against a fixed deposit of a certain sum held with them.
While minor students may not be able to get this credit card on their own, they can opt to get add-on credit cards. Many banks offer add-on cards to students aged 15 years or more.
Yes. Students without a job can still apply for this credit card. There are quite a few banks that offer secured credit cards. These cards are issued against a fixed deposit of a certain sum held with a bank and don’t require an income source.
To apply for such a credit card, you may have to submit a few documents. The list of documents includes your PAN, address proof, and a copy of the identity card issued by the university or college where you’ve enrolled.
Various banks, such as SBI, ICICI Bank, HDFC Bank, and Kotak Bank, offer such credit cards in India. Certain state governments, such as the State Government of Bihar and the Government of West Bengal, have also introduced credit card schemes for students.