Student credit cards cater to college students’ financial needs. They include standard credit card features such as an introductory APR, rewards earning, and discounts. Students in college who are older than 18 years old may apply for student credit cards. There is no need to provide proof of income. A student credit card can be a great way to teach kids about money and help them build their credit.
Similar programs, like the West Bengal Student Credit Card Scheme and the Bihar Student Credit Card Scheme, are now offered by state governments for students. These programs offer lower student loans so students can go to college without worrying about money.
Requirements for a Student Credit Card
Most student credit cards do not have an income qualification requirement because most students do not earn money. However, there are a few standard requirements that applicants must meet to be qualified. For instance, the applicant must be older than 18 years old. In addition, different banks may have different eligibility requirements.
It’s vital to remember that there aren’t many options for “student credit cards” in India. Banks, however, offer student loans, secured credit cards, and student currency cards as forms of financial assistance. You must fulfill the requirements to use these amenities.
Documents Necessary
- When you apply for a student credit card, the bank may ask you for the following:
- PAN or another form of government-issued picture ID proof.
- Aadhaar or another official document verifying a residence address.
- Birth Registration
- College ID card or another kind of enrollment documentation
- passport-sized images
Note: When applying for a student credit card, add-on card, or secured credit card, income proof is not necessary. However, some banks might be interested in giving you a conventional credit card if you are both a student and a wage earner (with steady employment). You must show proof of your income, such as your pay stub, ITR, bank statement, etc.
The Application Process for Student Credit Cards
The application procedure for a student card varies depending on the sort of credit card you want. The specifics are listed below.
- If you are 18 or older, you can ask your immediate relatives to apply for an add-on card on your behalf. The procedure is quick, and only the most essential KYC documents are needed.
- Secured Credit Cards: To obtain a secured credit card, you must create a fixed deposit account with a bank. If you already have a fixed deposit account, you can request a secured credit card be issued to you by the bank.
- You can apply for one of your bank’s credit cards for student loans.This is frequently illustrated with the SBI Student Plus Advantage Credit Card.
- Banks offer credit cards to students in exchange for student loans or prepaid cards that operate somewhat like student credit cards to help students with their finances. Here is a list of some of these cards.
SBI Student Plus Advantage Credit Card
A specifically student-focused credit card is the SBI Student Plus Advantage Card. Only SBI customers with an education loan or an FD on deposit at any SBI bank are eligible to use this card. Below are some characteristics and advantages of this SBI student credit card:
- For every 100 rupees spent, you will receive one reward point.
- Pay the unpaid credit card bill with the reward points you’ve earned.
- Waiver of the 2.5% fuel surcharge at all Indian gas stations
- The annual fee is waived upon spending more than Rs. 35,000 in the prior quarter.
- 10X incentives on department store and grocery purchases
- For international purchases, earn 10X bonus points.
- Online reservations for train tickets
- acceptance in approximately 24 million outlets around the world.
Student Forex Prepaid Card from ICICI Bank
A prepaid card that performs somewhat like a credit card is the ICICI Bank Student Forex Credit Card. The card is available for Rs. 499 as a membership fee and Rs. 199 as an annual charge. Key characteristics and advantages of this student credit card include:
- The International Student Identity Card membership in ISIC costs Rs. 590.
- DHL courier service is 20% off, and excess baggage is 40% off.
- Card security plus $1,600 in insurance
- Croma discount code
- Up to Rs. 5 lakh in liability coverage for lost or counterfeit cards
Getting a secured credit card is simple if you have a set deposit. A secured credit card is a suitable choice if you’re a student searching for financing but also want to earn interest on your fixed deposit. The credit limit on these cards is typically between 80% and 90% of the credit amount.However, this could differ across different credit card companies. The following list includes a few of these credit cards:
Paisabazaar Step UP Credit Card
- Get interest on your fixed deposit of up to 6.40%.
- Interest-free periods of 20 to 50 days
- 100% of the amount of your fixed deposit may be borrowed.
- One reward point is earned for every Rs. 100 spent using this credit card.
- After paying for the fixed deposit, an instant virtual credit card is issued.
- hassle-free, all-digital method
- Flexible fixed-term investment schemes worth Rs. 2,000, 5,000, 12,000, 24,000, and 60,000 are available.
- Additionally, you can increase the amount of your fixed deposit by up to Rs. 1 lakh.
DreamDifferent Credit Card: Kotak 811
- 5,000 reward points as a welcome bonus after spending Rs. 5,000 within the first 45 days.
- Except fuel, cash withdrawals, and rail travel, every Rs. 100 spent will earn you one reward point.
- Bonuses for online purchases are doubled.
- Up to 90% of your credit limit may be taken out.
- 45 days of interest-free cash withdrawal
- 2.99% interest rate per month
- Get four PVR movie tickets or Rs. 750 in rebate on annual spending of Rs. 75,000.
- 1% of all fuel transactions between Rs. 500 and Rs. 3,000 are exempt from the fuel surcharge.
- When you buy a ticket from IRCTC, either online or at a counter, you can get a waiver of up to 2.5% of the railway surcharge.
- Lost Card Liability Coverage against Unauthorized Use for the Previous 7 Days
ICICI Credit CardCoral Contactless
- Customers get two PAYBACK Points when they buy utilities and one PAYBACK Point when they buy insurance.
- Every two weeks, BookMyShow and Inox provide a 25% discount up to Rs. 100 on transactions, including a minimum of two movie tickets.
- There is a 1% fuel surcharge exemption for Hindustan Petroleum Corporation Limited pumps.
- Access to one domestic lounge every quarter is free.
- If you spend at least Rs 5,000 in a calendar quarter, you can go to a certain airport lounge in India for free once a quarter.
- Spending Rs. 2 lakh earns you 2,000 PAYBACK Points, while spending above Rs. 1 lakh earns you an additional 1,000 PAYBACK Points.
- Fee Waiver at Rs. 1.50 Lakh in expenditure
- Get up to 15% off your meal at more than 2,500 restaurants.
Student Add-On Credit Cards
Add-on cards are extra credit cards issued with a main credit card. Since it does not require as much inspection as a standard card, this is the simplest option for you to obtain a credit card. However, an add-on card won’t be useful if you want a student credit card to raise your credit score. Add-on cards are only available to the principal user’s immediate family. The credit limit is the same for the main cardholder and the person with an extra card.
- The Benefits of a Student Add-On Credit Card
- Your parents’ credit limit will be shared with you. This may be substantially more than what most banks will lend you.
- Features & Advantages: Most credit card issuers offer add-on cardholders practically all the benefits. This includes discounts, movie passes, eating perks, and occasionally even premium perks like lounge access.
- Security: You can be sure that your money will be recovered if you are charged for a transaction that was not yours.