14 Credit Cards against Fixed Deposits in India & 8 Benefits

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Individuals have become credit hungry as they spend heavily by shopping online – buying expensive gadgets, clothes, accessories and many others. And this addicted behavior has become a profit making machine for the companies and they are ready to offer cards to individuals by luring them with reward points, zero joining and annual fees. However not every indivudal can get a credit card as the companies take a very cautious approach before approving card to an individual. And they do this in order to judge the applicant’s repayment ability by verifying their annual income, credit history and past/current loan repayment history.

If due to certain reasons, the card company rejects the application then it doesn’t mean that the doors are closed for you. The solution is to apply for credit card against fixed deposit which requires an individual to have a fixed deposit account with the bank for a pre-determined duration and also deposit minimum amount in the account.

Here is the list of banks offering credit cards against FD:

Bank NameCredit Card NameMinimum Fixed Deposit Amount RequiredCredit Limit OfferedMinimum FD Tenure
Kotak Mahindra Bank (ING Vysya Bank)Solaris Credit CardRs. 25,000Upto 80% of the fixed deposit amountNA
Kotak Mahindra Bank (ING Vysya Bank)Galaxia Credit CardRs. 1,00,000Upto 80% of the fixed deposit amountNA
ICICI BankCoral Credit CardRs. 20,00085% of the fixed deposit amount180 days
Andhra BankSignature CardRs. 10,000Upto 75% of the fixed deposit amountNA
Bank of BarodaBOB Cards AssureRs. 25,000Upto 80% of the fixed deposit amountNA
Axis BankInsta Easy Credit CardNAUpto 80% of the fixed deposit amountNA
State Bank of IndiaAdvantage Plus CardNA85% of the fixed deposit amountNA
State Bank of IndiaStudent Plus AdvantageNANANA
State Bank of IndiaAdvantage GoldNANANA
HDFC BankBusiness PlatinumNANANA
HDFC BankBusiness GoldNANANA
Syndicate BankClassicNANANA
Syndicate BankGoldNANANA
Central BankAspireRs. 16,000Upto 80% of the fixed deposit amountNA

In the above table wherever NA is displayed, please contact respective bank.

Benefits:

  1. In order to avail credit card against fixed deposit, no annual income proof or Income tax return documents are required by the lender. So this is a good opportunity for self employed or low income individuals or those who do not have regular income to start building credit. Read more about how low income earners can avail credit card in India.
  2. Credit history is not checked. If you have a poor credit history you can start building the same. This will help you in future, when you apply for any kind of a loan/credit card. Check out credit card for first timers in India.
  3. Rewards point or cash back offers which are normally offered on normal cards are also offered by few banks.
  4. Individual will continue to earn interest even when credit card against FD is taken.
  5. A good repayment history will help in building credit history which in long run help in seeking any type of credit (loan or credit card).
  6. Since card is issued against already existing FD, there is not much documentation requirement. Otherwise when you apply for a card, the documentation work is tedious.
  7. Interest free period is normally higher compared to a regular card.
  8. No worry of reminder calls or recovery agents, as the outstanding payment will be deducted from your FD account. However never avoid delayed payments as it badly impacts your credit score.

Disadvantages:

  1. Your money gets locked.
  2. If you fail to make payment, money is deducted from your FD account. So whenever you wish to withdraw the FD, only the balance amount is refunded.
  3. Moreover failure to repay dues will further hurt your credit history.
  4. Benefits offered on such cards such as add-on cards, loan facility, insurance are not applicable or are less compared to normal cards offered by the banks.
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