A student credit card is a credit card that is offered to students at college level. Any student beyond the age of 18 years is eligible to apply for the credit card as it does not have an income eligibility limit. The cards have lower interest rates and have a validity period of 5 years.
Though the concept of student credit card is quite new in India, there are banks that offering the cards to the students. Some of the banks that offering the cards in the country are:
Some of the banks that offer student credit cards are mentioned below:
Student credit cards are the latest entrants in the credit card industry that help college students manage their expenses on their own. However, not all the students are eligible to get a student credit card. Various banks and financial institutions have come up with a different set of eligibility criteria to issue a student credit card. Only those who meet the criteria would become eligible to apply for a credit card.
While some banks such as the State Bank of India provide credit cards only to its education loan customers, other banks such as ICICI Bank offers student credit card over security deposits. Whichever is the process, if you are a student above 18 years of age and would like to apply for a student credit card, you must first know which bank is offering best student credit cards and process to apply for the same.
Once you meet the eligibility criteria set by the bank, you can check with the bank about the procedure to apply for the same. Not all the banks follow the same process. Hence, it's imperative to talk to the bank personal about the bank-specific process of applying for a student credit card. While a few banks allow you to apply online, others may require you to visit the bank branch and submit an application directly.
To be eligible for a student credit card one needs to be:
As for the documents, one needs to provide:
Credit Limits: Student credit cards have a lower credit limit compared to other credit cards offered by banks. On average, a student credit card has a credit limit of Rs. 15, 000. This is done to ensure that the cardholders do not incur debts as a result of unrestricted spending.
Card Validity: Student credit cards are generally valid for a period of 5 years from the issue date, as compared to regular credit cards which have a 3 year validity period.
Duplicate card free of cost: If the student credit card holder misplaces their card or it is stolen, a duplicate card would be issued free of cost or at a very nominal charge.
Waiver of fees: Student credit cards often do not have a joining fee and have very low annual charges, making it easier for students to maintain the cards.
Documentation: Students credit cards do not require exhaustive documentation, unlike most other credit cards. The bare minimum of documentation is required when applying for a card.
Special deals and rewards: The student cards come bundled with rewards and loyalty programs that offer cashback or cash points when a certain amount is spent using the card. The cards also have special offers and discounts on services as well as purchases worldwide.
If the cardholder wishes to, the student credit card can be upgraded to a regular credit card anytime during the card's validity.
With banks offering student credit card without the applicants needing to provide any employment documents or Income Tax returns, there must be some doubt as to how a student can apply for credit card.
Below, we discuss the ways how a student can get a credit card in their name:
Chief Minister of Bihar has made an announcement about the student credit card loan waiver during his recent campaign in the Dhnecha district.
To encourage the parents to enroll their children for higher education, the head of the state announced that the Student Credit Card loan will be waived if the students don’t get jobs.
The move is to increase the gross enrollment ratio of the state, which currently stands at 13%, to 30%, and make it the number one state in education.
The higher education in the state has been facilitated by providing Student Credit Cards. The loan amount availed through the scheme should be repaid by the students once they get a job in 82 easy monthly installments.
With the recent announcement, for the students who remain unemployed after finishing their higher education, the loan amount will be waived by the state government.
9 January 2019
Student credit cards are issued to students either against fixed deposit or savings account, or as add-on credit cards or to education loan customers. Listed below are top 3 student credit cards in India.
State Bank of India's Unnati Credit Card is issued against a fixed deposit of Rs.25,000. For the first 4 membership years, there is no fee. Cardholders can also enjoy cashback, reward points and fuel surcharge waiver.
Axis Banks Insta Easy Credit Card is also provided against an FD of Rs.25,000 to 25 lakh. Eligible students can go to any Axis Bank branch in their city and apply for the same. There is no annual fee for the card and credit limit would be up to 80% of the fixed deposit amount. The privileges offered on the card include 15% discount on dining, fuel surcharge waiver, Easy EMI facility and reward points.
Kotak Mahindra Banks Aqua Gold Credit Card is issued on a fixed deposit of Rs.25,000. Up to 80% of fixed deposit amount will be provided as credit limit. Special privileges on the card include fuel surcharge waiver, free PVR movie tickets and railway surcharge waiver.
19 December 2018
Bihar Chief Minister Nitish Kumar has said that the number of beneficiaries under the Student Credit Card (SSC) has gone up to 25,000 in the past 3-4 months. The growth has come after the Bihar State Education Finance Corporation (BSEFC) assuming the responsibility of disbursing soft loans to students. The purpose of disbursing the loans is to enable students to pursue higher education in or outside the state.
The scheme was launched on 3rd October 2016 but the number of beneficiaries in the past one and half years was just around 9,000. Under the scheme, students can avail loans of up to Rs.4 lakh at a low rate of interest of 4%. For girls, specially-abled, and transgender persons, the interest rate is only 1%. Kumar also urged the guardians to encourage their children to pursue higher studies as the literacy rate of the state is low.
He also asserted that the state government would waive off the loan if the student doesn’t get a job after completing the course and their family isn’t able to repay the money.
16 December 2018
Today, several leading credit card issuers have a special credit card for students. If you are pursuing your studies and need a financial tool to meet your daily expenses, you can definitely go for a student credit card. There are several benefits and conveniences that a student credit card offers. Some of them are as follows.
•No income proof required: If you are a student and wish to get a student credit card, you do not have to produce any proof of your income. Also, the entire process takes just a few documents and thus greatly reduces your hassles.
•Multiple uses: Using your student credit card, you could pay your college tuition fee and other related charges. If you wish to pay for any online course that need to undertake, you can do so using the card.
•Several offers: A student credit card is usually packed with numerous cashback offers and discounts which you can avail on multiple categories of transactions. The reward points that you earn on the card can be redeemed against a host of exciting options.
15 November 2018
Chief Minister Nitish Kumar recommended the Student Credit Card Scheme to all school pass outs. The Student Credit Card Scheme focuses on providing financial assistance to all school pass outs who are unable to pursue higher education due to financial issues. It also aims at raising the state’s GER in higher studies. The current GER of the state is 14.3% and the national average is 24%. Chief Minister Nitish Kumar stated that he wants to raise the state’s GER to a minimum of 30%.
He further stated that The loan will be provided to even those students, especially SC/ST, who are getting scholarship under different schemes. The state government may take a decision to waive the loan if any student is unable to repay the amount.
20 August 2018
Off late, credit cards are being offered to people from all walks of life including self-employed, salaried, professionals, and even to students. The concept of student credit cards has somehow surprised some of us as to why students need a credit card as they don’t earn anything while studying. However, with the terms and conditions that come with a student credit card, it makes sense to avail a credit card for a student. Mentioned below are a few common features offered on student credit cards that could convince you to take a credit card for your son or daughter.
Unlike regular credit cards, student credit cards are not issued just because the applicant is a student. Though the applicant needs to be a student from a college or university, banks simply cannot issue a credit card without any security. Hence, most banks require the applicant to have a fixed deposit account with them to get a credit card. This means parents or guardians of the student need to open a fixed deposit account with a minimum amount as stated by the bank so that their teen can have a credit card.
Another way to avail a student credit card is to deposit a certain amount with the bank as a security deposit based on which the bank will provide a credit card. In case, the cardholder defaults payments on the credit card, the bank will break the deposit.
Some banks also provide a student credit card for those who have availed an education loan from them. This type of credit card doesn’t require a fixed deposit or any other security deposit.
Further, student credit cards typically have less credit limits, no annual fee and no or less interest rates. Thus banks make them customised for the student group who do not have any income during their tenure of education.
All this features and benefits thus make a student credit card a unique product. With all the security involved in the card, you can take a credit card for your teen and make their expenses recorded on a monthly basis. This way they will also understand their spending behaviour and where they need to cut their expenses.
6 June 2018
Student credit cards are offered by very few banks in India. They are exclusively designed to meet the needs of the student community. Any student above 18 years of age and meets the minimum eligibility criteria can apply for the card. The documents required to apply for a student credit card include Aadhaar card, date of birth certificate, address proof, college identity card of student and a recent photograph.
Students can avail the credit cards by opening a fixed deposit account in the bank or by availing an education loan from the bank.
To apply for a student credit card, the applicant should approach the respective bank, submit the required proofs along with the filled-in application. Some banks also accept online applications for student credit cards. Submitting an online application for a student credit card will return a call to the applicant provided he/she meets the eligibility set by the bank.
A few benefits offered by student credit cards include low interest rates, joining fee or annual fee waivers, zero annual fee, and other offers including cashbacks and accelerated rewards.
26 March 2018
The Bhojpur district in Bihar state has reportedly received only 324 applications for student credit cards since the student credit card scheme was launched in October 2016.
Of the total applications received, the banks have accepted 252 applications, issued student credit cards to 233 applicants, while the loan amount was sanctioned to 119 applicants.
The student credit cards scheme was launched in the state to provide students from weaker sections, up to Rs.4 lakh towards higher education. The government will act as a guarantor for the return of loan and interest.
However, despite government’s interest to help the weaker sections of the society, the scheme has been receiving a poor response. To address the issue, the DM of Bhojpur district instructed the officials to coordinate with the banks, talk to eligible applicants as well as launch awareness about the programme. He also asked the bank officials to disburse the loan for eligible applicants at the earliest possible. He further asked the officials to submit a list of prospective applicants who are already contacted and counselled.
12 March 2018
The Bihar government has announced that it would push for student credit cards again. This time, the government is planning to set up a state government run corporation that would guarantee banks payment in case of default by the person taking out the loan. This scheme would allow students to take out an education loan of up to Rs.4 lakh.
The student credit card scheme was initially launched on 2 October 2016 with a view to cover 9 lakh students by 2020–21. The government planned to cover 5 lakh students for the first year and covered 14,242 students until December 2017.
During the event for the announcement regarding the corporation, bankers blamed regional officers for not processing applications fast enough and the regional officers blamed the bankers for delaying the process by requiring students to provide supposedly unnecessary details. A government official said that they wanted to increase the reach of the program exponentially by 2020.
13 February 2018
Students who are co-borrowers for credit card scheme loans no longer need to submit their PAN cards in the state of Bihar, according to the Finance Ministry.
Loans up to Rs.4 lakh are exempt from the requirement regarding declaration of their PAN.
This has been done in an effort to ease the loan securing procedure for students and provide some relief to parents who do not have PAN cards but wish to avail a loan.
This move will come as a major relief to a large section of the populace who wish to be co-borrowers to their children?/ward? loans but were unable to because they lacked PAN cards.
24 February 2017