25 Credit Cards for Self Employed with Low Income (Rs.4200 – 25000)
Everyone has a dream be it salaried or self employed. But being independent, does not mean that they do not have the same needs and dreams. The difficulty is even greater in the case of the self-employed whom banks tend to treat with great suspicion, unless they have guarantees, guarantees or a very solid financial history.
There are a large number of self employed individuals and they usually face difficulty in getting approval for a credit card and have lot of questions on getting a credit card.
So here are the frequently asked questions by self employed requiring credit card?
Yes, there are many banks in India offering credit card for self employed individuals. And it is a myth that access to credit (card or loan) is impossible as they have to struggle a lot to generate income and hence ability to repay is difficult for many. Because of this financial institutions apply strict criteria when it comes to granting credit card approval to a self employed.
Typically self employed fall into following categories:
(2) Business owners (especially small business owners) or Entrepreneurs
The most easiest option to get credit card for self employed with low income is:
(1) Credit cards against fixed deposit
(2) Add-on credit card
Yes, there are many banks in India offering credit cards for self employed with low income. The table below shows list of cards, minimum monthly and annual income required:
|Sr. No||Credit Card Name||Minimum Annual Income Required (Rs.)||Equivalent Minimum Monthly Income (Rs.) / FD Amount Required||Card Issuing Bank|
|1||Visa Classic||50,000||4,166||Vijaya Bank (Now part of Bank of Baroda)|
|3||Empowerment||80,000||6,666||Jammu and Kashmir Bank|
|4||Visa Global||1,00,000||8,333||Vijaya Bank|
|6||HPCL Credit Card||1,44,000||12,000||ICICI Bank|
|7||Empowerment||1,50,000||12,500||Jammu and Kashmir Bank|
|9||Bharat Card||2,00,000||16,666||HDFC Bank|
|13||Signature (Card against fixed deposit)||Not applicable||10,000||Andhra Bank|
|14||Payless (Card against fixed deposit)||Not applicable||15,000||Development Credit Bank|
|15||Aspire (Card against fixed deposit)||Not applicable||16,000||Central Bank|
|16||Coral (Card against fixed deposit)||Not applicable||20,000||ICICI Bank|
|17||Instant Platinum (Card against fixed deposit)||Not applicable||20,000||ICICI Bank|
|18||Insta Easy (Card against fixed deposit)||Not applicable||20,000||Axis Bank|
|19||Assure (Card against fixed deposit)||Not applicable||25,000||Bank of Baroda|
|20||Usecure (Card against fixed deposit)||Not applicable||25,000||Union Bank of India|
|21||Unnati (Card against fixed deposit)||Not applicable||25,000||State Bank of India|
|22||Solaris (Card against fixed deposit)||Not applicable||25,000||Kotak Mahindra Bank|
|23||Aqua Gold (Card against fixed deposit)||Not applicable||25,000||Kotak Mahindra Bank|
|24||Advantage Plus (Card against fixed deposit)||Not applicable||25,000||State Bank of India|
|25||Galaxia (Card against fixed deposit)||Not applicable||1,00,000||Kotak Mahindra Bank|
Sr. 13 to 25 above are the credit cards offered against fixed deposit. Applicant needs to open a FD account, deposit minimum amount and apply for cards against FD. The approval is fastest and interest rate is very low.
Requirements and documents for a self employed
When a self employed person applies for a credit card, the financial institution has a number of requirements. The requirements depend on the type of business and most importantly the income.
However access to a credit card, if you work independently or have a business is possible but with varying eligibility criteria especially the income requirement.
The requirements demanded by card issuers vary for a self-employed individual. And here are the typical requirements:
- For most of the lenders, income for self employed should be as per Income Tax Returns minus Tax liabilities & statutory deductions.
- Proof of Income –
- Audited financials for the last two years
- Latest 6 months Bank statement.
- Age should be minimum 21 years and maximum 65 years
- One recent passport size color photograph
- Copy of PAN Card
- KYC Documents – Photo-Identity Proof & Address Proof
- Office address proof
- Proof of residence or office ownership
- Proof of continuity of business
However above document list or eligibility criteria will vary for each card issuing bank.
Lenders are aware that the only objective of the self-employed or entrepreneurs is to work or start a new business. For these professionals, time is money. For this reason, banks typically approve credit card quickly and without much hassle for the applicant.
This article has been written by Chandra Mehta.
Chandra is a seasoned banker with 35+ years of experience in banking and financial services industry. He’s a retired banker and has served as Chief Manager and Assistant Vice President in State Bank of India/or its subsidiaries.
He has authored many articles on this site (allonmoney.com).