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Ramesh Kumar

Marketing Manager | Posted on | others


Everything You Need To Know About Credit Card Against FD

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Owning a credit card makes it easier to make instant contactless transactions. Not only do they aid in cashless purchases but they also offer benefits such as cashbacks and discounts. However, not everyone can be eligible for online credit cards. Each credit card comes with its specific criteria. In case you do not have the required annual income or have a poor credit history, your credit card application might get rejected. However, there is an easy solution to this problem. As opposed to a traditional credit card, you can instead avail a credit card against a fixed deposit (FD).

 

Everything You Need To Know About Credit Card Against FD

 

What is a Credit Card Against FD?

A Credit card against FD is a type of credit card wherein you can decide the credit limit against any FD that you have. Thus any purchase you make with the credit card will be deducted from the FD amount. Thus, in a way, your FD acts as collateral for the bank to recover the balance. The card is ideal for people who have low or unstable income or poor credit history.

 

Benefits of Getting a Credit Card Against FD

  • You can enjoy the full credit limit available against the total amount on your FD
  • You need not provide extra documentation to apply for a credit card against FD
  • Low-interest rate than traditional credit cards
  • No extra charges involved
  • Higher approval chances
  • Some banks offer a grace period against such credit cards. This offers extra time to make credit card payments

 

How to Apply for a Credit Card Against FD?

To apply for such a credit card online, you need to first have a fixed deposit with the bank. If you do not have an existing FD, you will have to open a new one and then apply for a credit card against that FD. However, please note that if your fixed deposit is already marked as collateral for any past loan or overdraft, you cannot use the same fixed deposit for availing a credit card.

 

 

Features of 3 Best Credit Cards Against FD

 

  • Axis Insta Easy
  • Enjoy guaranteed approval on fulfilling the eligibility
  • Enjoy a credit limit of up to 80% of your FD value
  • Avail cash-withdrawal facility up to 100% of your credit limit
  • Avail other benefits such as 1% fuel surcharge waiver on all fuel transactions, 15% discount at partner restaurants across India, access to Visa International Global Card Assistance Services, and more.

 

  • SBI Advantage Plus
  • Enjoy the Flexipay facility to convert purchases of ₹2,500 and above into EMIs
  • Get an add-on credit card for your family members
  • Enjoy up to 100% cash-withdrawal limit
  • Get balance transfer on EMI of your other bank credit cards to SBI Advantage Plus

 

  • Bajaj Finserv Freedom Supercard
  • Avail 100% of your fixed deposit as credit limit on your card and 75% of your credit limit as cash limit.
  • Convert the available cash limit into a personal loan at zero-processing fees and low interest
  • Enjoy unlimited interest-free cash-withdrawal on the available cash limit from all ATMs across the country up to your credit card billing date
  • Earn 2,000 Reward points on paying the joining fee and making spends of ₹2,000 within a month of card issuance