Your annual income is the most important factor considered by credit card issuer while applying for any type of credit card. So for e.g. a person with a monthly salary of Rs. 75,000 has more chances of getting a credit card compared to a person with an income of Rs. 25,000. There are many other eligibility factors such as type of employment (full-time or part-time, place of living and others), credit history and loan you have taken but your income is the most crucial deciding factor.
And this is a valid reason credit card lenders consider before offering credit card to someone to evaluate the repayment capacity. So higher the salary, higher is your capability to pay dues every month and vice-versa.
But can a person with poor income get a credit card in India? The answer is YES. The next obvious question is – how can a person with low income in India get a credit card and which lenders provide card to such individuals?
Here’s the list of banks offering credit card to low income earners (less than 2 Lacs) along with the MINIMUM ANNUAL salary requirement. But credit limit is low for such individuals and more over individual’s spending is restricted to less than 3 times of the monthly salary. Also if employed in a reputable company (preferably listed company) then it’s a plus point for the applicant. But for a beginner these banks offer a great opportunity to start building a credit history.
Also see tips on earning extra income, at the comfort of your home.
- Visa Gold & Visa Gold International by Bank of India: Rs. 1,50,000 (self-employed or salaried) i.e. monthly salary of Rs. 12,500.
- RuPay Platinum by Andhra Bank: Rs. 1,80,000 (self-employed or salaried). Rs. 15000/month.
- Bharat card by Indian Bank: Rs. 72,000 i.e. monthly salary of Rs. 6000.
- Axis Bank Gold Card: 1,80,000 (self-employed or salaried) which is Rs. 15,000 per month.
- India Card by Bank of India: To be eligible to get this card, gross annual income of the applicant should be Rs. 0.75 lacs & above. This comes out to be less than 7000 per month which is lowest.
- Canara Bank (Visa Classic/Mastercard Standard Card): Minimum annual salary is Rs. 1,00,000 p.a. This comes out to nearly Rs. 8,000 per month.
- Empowerment (for salaried) by Jammu and Kashmir Bank: Rs. 80000 per annum. i.e. Rs. 6666 per month.
- Empowerment (for self employed) by Jammu and Kashmir Bank: Rs. 1,50,000 per annum. i.e. Rs. 12500 per month.
- ICICI Bank (HPCL Credit Card): Rs. 1,44,000 (Both salaries and self-employed) i.e. monthly salary of Rs. 12,000.
- HDFC (Gold and Silver): For salaried Rs. 2 Lacs and self-employed Rs. 1.5 Lacs. i.e. monthly income between Rs. 15,000 – Rs. 16,000 for salaried person and Rs. 12,000 for self employed.
- Andhra Bank (Visa Classic/Mastercard): Gross annual income required is Rs. 1,80,000
- Andhra Bank (Visa Gold Card): Gross annual income required is Rs. 2,40,000
- Bank of Baroda (Visa Gold Card): Annual income required is Rs. 1,50,000 i.e. Rs. 12500 monthly.
- Corporation Bank (Classic & Gold Card): In order to be eligible to get classic card annual income required is just Rs. 1,20,000. Whereas for gold card, Rs. 2,00,000 is the annual income required.
- Corporation Bank (Gold for Senior Citizen): Rs. 1,20,000 per annum. i.e. Rs. 10000 monthly.
- Vijaya Bank (Visa Classic/Mastercard Global): Requires lowest salary amongst all which is Rs. 60,000 and Rs. 1,20,000 respectively. However the condition to avail the card is that the applicant should be the account holder of the bank.
Card issuer will ask for following documents related to your income:
- Salary slips/certificate for last 3 months for working professional
- Income tax return document for self employed
- Latest bank statement indicating salary credited for minimum 3 months for working professional
Note: Please check with each of the above mentioned banks on other requirements and documents for getting a card other than annual income. Every bank has a different set of requirements.
Cards against Fixed Deposit
Other way for a low income earner to get credit card is against FD. Basically applicant needs to put fixed amount of money as a security with the bank and get card against this security. The credit limit offered is 80%-85% of the FD amount. The table below shows list of banks offering cards against FD:
|Sr. No||Credit Card Name||Minimum Fixed Deposit Amount Required||Card Issuer|
|1||Signature||Rs. 10,000||Andhra Bank|
|2||Payless||Rs. 15,000||Development Credit Bank|
|3||Aspire||Rs. 16,000||Central Bank|
|4||Coral||Rs. 20,000||ICICI Bank|
|5||Instant Platinum||Rs. 20,000||ICICI Bank|
|6||Insta Easy||Rs. 20,000||Axis Bank|
|7||Assure||Rs. 25,000||Bank of Baroda|
|8||Usecure||Rs. 25,000||Union Bank of India|
|9||Unnati||Rs. 25,000||State Bank of India|
|10||Solaris||Rs. 25,000||Kotak Mahindra Bank|
|11||Aqua Gold||Rs. 25,000||Kotak Mahindra Bank|
|12||Advantage Plus||Rs. 25,000||State Bank of India|
|13||Galaxia||Rs. 1,00,000||Kotak Mahindra Bank|
In fact, this is the most easy option for poor income earners to get a credit card due to the following benefits:
- No credit history check
- Low interest rate
- Very few documents required as the bank already has documents when FD was opened.
- No income limit. So no need to provide income related documents such as salary slip, IT returns, etc.
How low income earners should save money?
Once you get your first credit card, maintain long relationship with the financial institution by making all the monthly repayment before the due date fully, not spending beyond the credit limit, avoiding paying minimum balance, etc.
This will increase your chances of getting a credit card or loan (personal, car, two-wheeler and others) from some other lender in the future or existing card issuer will increase the credit limit and offer low interest rate. This is because nowadays companies also check your repayment history along with other factors such as credit score, age, profession, and others.
Also read how low income professionals can earn extra money.