Irrespective of whether one is studying in India or abroad, student credit cards are specially designed to suit the needs of college students. You can apply for a student credit card online to manage your daily expenditures, such as buying study materials, transportation, leisure activities, etc. Continue reading to know the key highlights of credit cards for students.
Student credit cards can be applied for against fixed deposits, savings account, education loan, or through government schemes
These students’ 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
Much like any other card application, you can initiate the application process for student credit cards online as well as offline. However, do note that some banks may allow only online applications. It is, therefore, wise to discuss this with a bank representative before initiating the application process. The basic steps that you must follow for the online student credit card application process include:
Step 1: Visit the bank’s official website.
Step 2: Fulfil the eligibility criteria and click on ‘Apply Now’.
Step 3: You might be asked to submit a few documents to initiate the process.
Step 4: Once you have uploaded all the necessary documents successfully, click on ‘Submit’.
Since the user base for these credit cards are students, banks usually do not consider the typical credit card eligibility criteria. Such as credit score and stable income, when reviewing the student credit card application. Thus, instead of conventional methods, credit cards for students can be applied for by any of the below-mentioned means:
If you have a fixed deposit (FD) in your name, you can use it to apply for student credit card online or offline. However, the minimum amount eligible for a credit card against a fixed deposit may vary from bank to bank.
If you have a family member who owns a credit card, you can get a credit card for students as an add-on card. However, to get the add-on card approved, the primary cardholder must have a good credit history.
If you have a savings bank account with a steady monthly average balance, you can use it to apply for a student credit card online. Some banks, such as SBI, also grant these cards (e.g. SBI Student Plus Advantage Credit Card) to people who have got an education loan with them.
A lot of state governments in India have launched programs that offer credit cards for students. Some of the common government programs offering such cards are West Bengal Student Credit Card Scheme, Bihar Student Credit Card Scheme, Jharkhand Student Credit Card Scheme, etc.
A student credit card is a type of credit card available to students in college to suit their needs. It allows them to meet their expenses instantly and manage their funds.
There is no income limit eligibility for the student credit cards since students do not earn. However, there are certainly some basic criteria that a student must fulfil in order to be eligible for a student credit card. In general, students above the age of 18 are eligible to apply for the card. It is to be noted that eligibility criteria can differ from one bank to the other. These credit cards have a validity period of five years and also come with reasonably low-interest rates.
When a student intends to apply for a student credit card, they will be asked to provide the following documents:
PAN card or any other government-approved photo ID proof
Aadhaar Card or any other government-approved residential address proof
Identity Card of the college or any other proof of enrolment
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 banks that offer student credit cards in India.
State Bank of India
Kotak Mahindra Bank
If you wish to apply for a student credit card, then it is important for you to know about the different types that are available. Here’s a quick overview of the list of student credit cards that you can apply for right now.
The Student Plus Advantage credit card from SBI is one of the most popular credit cards for students. Available for an annual fee of just ₹500, the card offers a host of different benefits. Check out a few of them below.
Ability to use reward points to pay outstanding dues
1 reward point for every ₹100 spent on the card
10x reward points for all international, grocery and departmental store transactions
Fuel surcharge waiver of 2.5% across all fuel stations in India
Ideal for students who have enrolled in foreign universities, the ForexPlus card is a prepaid card that functions like a typical credit card. To use the card, first, you would need to load it up with funds. You can transfer funds to the card in INR and then later on use it to pay for products or services in a foreign currency. The card protects the holder from exchange rate fluctuations.
The Multicurrency Platinum ForexPlus Chip card from HDFC Bank also works in a very similar fashion to the bank’s ForexPlus card. The only difference is that the Multicurrency card supports payments in up to 20 different foreign currencies.
Since this student credit card is a prepaid card, you would have to deposit funds in the card’s account before you can begin to use it. In addition to this, the card also comes with a card protection plan to the tune of ₹5 Lakhs.
Launched by the government of West Bengal, the WBSCC allows students to avail a loan of up to ₹10 Lakhs. These loans are available at a very low-interest rate of just 4% per annum for a maximum tenure of 15 years. The loan can be used by students to pay for their higher education. This credit card for students is offered through various partner banks. You can apply for this student credit card through the website https://wbscc.wb.gov.in/, which is a dedicated portal established by the West Bengal Government.
While they will vary from lender to lender, the general features and benefits of getting a student credit card are discussed below:
A student credit card comes with a limited credit limit so that students do not fall into a debt trap by overspending
A student credit card has a low cash withdrawal limit so that students can use it only for emergencies
Student credit cards offer convenience and quick access to funds
The interest rate is low to ensure easy and convenient repayment
A student credit card has a validity of 5 years
Some banks offer the facility to convert the student credit card to a standard credit card once the cardholder completes his/her college education
As a student credit card helps in prompt repayment of dues, it easily helps the cardholder to build a good credit score
You can earn and redeem reward points and get discounts against student credit card transactions
You can get a student credit card with zero fees and charges
An add-on card is a supplementary credit card issued against a primary credit card. This is one of the simplest ways to procure a credit card, you do not have to go through the same process as a regular credit card. The primary user and immediate family members of the primary user are the only ones eligible for add-on cards.
Student credit cards are designed in such a way that college students can manage their finances in an easy and hassle-free manner. With a student credit card, you can enjoy some of the best credit card offers, cashback, and discounts. You can get special discounts and cashback on movie tickets and events along with a fuel surcharge waiver, free airport lounge access, interest-free ATM withdrawal. What’s more! Transactions made using these cards are also eligible for rewards. The accumulated credit card reward points can then be redeemed against coupons and merchandise available in the bank’s reward catalogue.
Student 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 student credit card fees and charges.
The credit card limit for student 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.
The general steps to check your credit card status are:
Step 1: Visit the bank’s official website.
Step 2: Go to ‘Credit Card’.
Step 3: Enter the application reference ID.
No, a student cannot hold multiple student 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 avail a student 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 a student 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 a student credit card, you may have to submit a few documents. The list of documents include your PAN, address proof, and a copy of the identity card issued by the university or college where you’ve enrolled.