Student Credit Cards in India

Student credit cards are specially designed for college and university students to help them manage everyday expenses while learning financial discipline. These cards not only offer the convenience of digital payments but also help you start building a credit history early. 

If you’re a part-time student with a steady income and a savings account, you can easily apply online. Those without income can also get an add-on card linked to a parent’s account. In some cases, government-backed student cards are also available for eligible applicants. 

Quick Facts About Student Credit Cards

• Eligibility Requirements: You must be at least 18 years old with a valid Aadhaar/PAN, college ID, and proof of income or a savings account. 
• Credit Limit: Most student credit cards come with a modest credit limit, often between ₹5,000 and ₹50,000, to encourage responsible usage. 
• Annual Fees: Many student cards offer zero or low annual fees, making them affordable for first-time users. 
• Charges: Late payment or over-limit fees may still apply, so always review your card’s fee schedule before use. 
• Credit Habits: Paying your bills on time and maintaining a low utilisation ratio can help you build a strong credit history early on. 

These cards offer several benefits for students aiming to build credit and manage expenses responsibly. Here are some key features and advantages:

• You can apply for these cards against fixed deposits, savings accounts, education loans, or through government-backed student schemes.

• These credit cards usually come with a validity of over 5 years.

• Student credit cards carry lower interest rates compared to regular credit cards. 

• They offer limited credit limits to prevent overspending and help students manage debt wisely.

• Students can earn reward points or cashback on everyday spends like food, shopping, or online subscriptions.

• These credit cards often have global acceptance, making it easier to transact while studying abroad or shopping on international platforms. 

• Some cards offer student-exclusive discounts on educational tools, travel bookings, and e-learning platforms.

• Credit cards for students can make it convenient to afford big purchases like laptops or study materials through easy EMI options. 

The exact features and benefits of such credit cards vary from one card to another. However, the general perks are outlined below. 

• Lower Credit Limit: These credit cards generally come with lower credit limits ranging from ₹10,000 to ₹50,000, so students do not fall into a debt trap by overspending. Some secured cards may offer a limit of up to 90% of their corresponding fixed deposit amount. 
• 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/issuers offer the facility to convert the student credit card to a standard credit card once students complete 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. 

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

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 immediate family members to use the credit card and enjoy its benefits. 

Students can benefit from add-on credit cards issued with their parents as the primary cardholder. Some of the top advantages of add-on student credit cards include the following: 

• Higher Credit Limit

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 purchasing power. 

• Extensive Rewards and Benefits

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 enjoy the exclusive rewards and benefits. 

• Security and Tracking

Any transaction made using an add-on credit card is just as secure as a transaction made using a primary card. Additionally, you can see all your purchases in a separate list on the credit card statement, which can help in budgeting and monitoring.

The eligibility criteria for student credit cards in India are generally relaxed, focusing on student status and age rather than income or credit history. Here are the general criteria for qualification: 

• Age: The applicant must be a minimum of 18 years old to apply for a primary student credit card in their own name. Forex cards can have lower age limits. 
• Student Status: You must be enrolled in a recognised university, college, or similar academic institution in India or abroad. 
• Nationality/Residency: The applicant typically needs to be an Indian national and a resident of India.
• Income Proof (Generally Not Required): Most student credit cards are designed for individuals without a regular income.
• Credit History (Not Required): A prior credit history or a high CIBIL score is generally not required, as these cards help students build a credit history from scratch. 
• Collateral Requirement: Most cards are secured, requiring a FD with the issuing bank, which acts as collateral. The credit limit is usually 75-90% of the FD amount. 

The following are the basic documents you may need when you apply for a student credit card: 

• Proof of Identity (Aadhaar Card, PAN Card, Passport, Voter ID)

• Proof of Address (Utility bills, Aadhaar Card, Passport)

• Proof of Age (Birth certificate, 10th-grade certificate, Passport)

• Student Identity Card or College Admission Letter (Proof of enrollment)

• Identity card issued by the college/university and passport-sized photographs

• Fixed Deposit receipt or documents (if applicable) 

• Details or co-signer/guarantor details and their income proof

Disclaimer: Eligibility criteria and required documents mentioned above can vary from one issuer to another. Please understand the terms and conditions before applying for a credit card.

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. 

Here are the steps that you must follow to apply for student credit cards on Bajaj Markets: 

• Step 1: Click on the ‘Check Eligibility’ button at the top of the page. 
• Step 2: Enter your mobile number and occupation details and accept the terms and conditions. 
• Step 3: Click on ‘Next’ to get an OTP on your mobile and enter it to proceed. 
• Step 4: Check the pre-filled details and enter any additional information required. 
• Step 5: Compare and choose a credit card from the options shown, as per your eligibility. 
• Step 6: Submit your student credit card application and wait for approval and further steps. 

Since the primary consumers for these credit cards are students, banks usually do not consider the typical credit card eligibility criteria. Thus, you can apply for credit cards designed for students in these ways: 

• Apply Against a Fixed Deposit

If you have a fixed deposit in your name, you can use it to apply for student credit cards online or offline. The minimum amount eligible for a credit card against a fixed deposit may vary as per the policy of the financial institution. 

• Apply for an Add-on Credit Card

If you have a family member who owns a credit card, you can get a credit card for students as an add-on card. To get approved, the primary cardholder must have a good credit history.

• Apply Against a Savings Account or Loan

If you have a savings bank account with a steady monthly average balance, you can use it to apply for a credit card online. Some issuers also grant these cards if you have an education loan with them. 

• Take Advantage of Government Schemes

A lot of state governments of the country have launched programs that offer credit cards for students. Some of the common government programs offering such cards are the West Bengal Student Credit Card Scheme, Bihar Student Credit Card Scheme, etc.