Student Credit Cards in India

Credit Card for Students

Irrespective of whether you are 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.

Key Highlights of Student Credit Cards

• 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

Features and Benefits of Credit Cards for Students

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

How to Apply for a Student Credit Card Online

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:

• Apply Against a Fixed Deposit

If you have a fixed deposit (FD) in your name, you can use it to apply for student credit cards online or offline. However, the minimum amount eligible for a credit card against a fixed deposit may vary from bank to bank.

• Apply as an Add-on 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. However, to get the add-on card 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 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.

• Take Advantage of Government Schemes

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.

Banks Offering Student Credit Cards in India

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

• HDFC Bank

• Kotak Mahindra Bank 

• ICICI Bank

• Axis Bank

Student Credit Card Rewards Points

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.

Some of the Top Student Credit Cards 

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 student credit cards that you can apply for right now.

1. HDFC Bank ISIC Student ForexPlus Card

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 

2. ICICI Bank Student Forex Prepaid Card

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

3. Kotak 811 #DreamDifferent Credit Card

This is a lifetime free credit card that offers a wide range of benefits. You can apply for this student 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 

4. West Bengal Student Credit Card (WBSCC)

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 

5. Bihar Student Credit Card 

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 the credit card to eligible students

• Nominal interest rates 

Add-on Credit Cards for Students 

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:

• 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 credit limit. 

• 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 also enjoy the exclusive rewards and benefits on the primary card. 

• Secure Transactions:

Any transaction made using an add-on credit card is just as secure as a transaction made using a primary card.