2021: 16 Credit Cards for Low Income Earners, INR 10000 Minimum Income Reqd
Credit card for low income earners, is it really possible?
This is a very common question asked by individuals earning low salary/income and requiring credit card. After all everyone needs a card to avail benefits which are not possible in case of other modes of payment in India (e.g. cash).
But when someone with low salary (or high salary) applies for a card; annual income is the most important eligibility criteria considered by the card issuing bank.
For e.g. a person with a monthly salary of Rs. 75,000 has higher chance of credit card approval compared to a person with an income of Rs. 25,000 per month. Although there are many other eligibility factors such as type of employment (full-time or part-time, place of living and others), credit history, etc. but your income plays the most significant role.
And income (in case of self employed) and salary (in case of working professional) is the best factors for judging any applicants’ repayment capacity. Basically it is assumed that – higher the salary, higher is your capability to pay dues every month and lower the income, lower would be the repayment capacity.
Can a poor income earner get a credit card in India. How, and what is the minimum salary required?
The answer is YES.
There are many credit cards for low income earners in India.
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?
Below is the list of 16 banks offering credit card to low income earners (Rs. 10,000 minimum per month) along with the MINIMUM ANNUAL salary requirement.
|Sr. No.||Bank Name||Credit Card Name||Minimum Annual Income Required (in INR)||Equivalent Monthly Income (in INR)|
|1||Corporation Bank||Gold for Senior Citizen||1,20,000||10,000|
|2||HDFC Bank||Freedom Card||1,44,000||12,000|
|3||HDFC Bank||Bharat CashBack Card for Salaried||1,44,000||12,000|
|4||Corporation Bank||Gold for Salaried Professional||1,80,000||15,000|
|5||Corporation Bank||Gold for Professional||1,80,000||15,000|
|6||Andhra Bank||RuPay Platinum||1,80,000||15,000|
|7||Corporation Bank||Gold for Self Employed||2,00,000||16,667|
|8||HDFC Bank||Bharat CashBack Card for Self Employed||2,00,000||16,667|
|9||State Bank of India||SimplySAVE||2,16,000||18,000|
|10||State Bank of India||SimplyCLICK||2,16,000||18,000|
|11||Corporation Bank||RuPay Platinum||2,50,000||20,833|
|12||HDFC Bank||Times Titanium Credit Card||3,00,000||25,000|
|13||HDFC Bank||MoneyBack Credit Card||3,00,000||25,000|
|14||Yes Bank||Prosperity Reward Plus||3,00,000||25,000|
|15||HSBC Bank||Smart Value||3,00,000||25,000|
|16||Dhanlaxmi Bank||Gold Card||3,00,000||25,000|
Income proof required by the banks
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 – Another Option for Poor Income Earners to Get Credit Card
Other way for a low income earner to get credit card is against FD. Cards against fixed deposit is one of the easiest way to get a card when earning is poor. This is because, income is not the eligibility criteria for cards against FD. Instead issuing bank requires fixed deposit account with minimum deposit. Check out 17 credit cards against fixed deposit offered by various banks in India.
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.
Check out: Personal loan for poor income earners
Limitations of Low Income Credit Cards
Credit limit is low for individuals earning less. And more over individual’s spending is restricted to less than 3 times of the monthly income. Also if employed in a reputable company (preferably listed company) then it’s an advantage for the applicant. But for a beginner these banks offer a great opportunity to start building a credit history.
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 and 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 age, profession, type of job/business, and others.
Also read, how low income professionals can earn extra money in India in a authentic way.