Most credit cards often require you to have a good income so you can sustain paying for your monthly bill. This is why many credit card providers do not often provide credit cards to students since they do not pass the basic income requirement. Times have changed and in India, you can now own a student credit card exclusively for Indian university and college students.
Many Indian banks have heavily featured student credit cards in their roster in hopes of providing financial freedom to students as early as possible. They even have the feature to upgrade to another credit card once they can have a good income after college.
If you’d want to discover more about how to take a student credit card, check out the guide below and see some great examples of student credit cards in India.
What is a Student Credit Card?
A student credit card is the same as the standard credit card. It has almost all of the benefits, features, rewards, and perks of owning a credit card like a decent credit limit, discounts, rewards programs, cashback rewards, and many more.
Many student credit cards also have the same application requirements as the standard credit card but the main difference is that student credit cards are designed for college or university students who do not have a credit history.
The credit score requirement is completely removed from the list of eligibility requirements so any university or college student can apply for one if they pass the other requirements.
Ultimately, a student credit card is primarily designed to help you start building your credit score.
Can a Student Get a Credit Card in India?
Certain countries all over the world do not offer student credit cards as they deem them to be very risky. In India, university and college students can apply for a student credit card.
Providing you can fulfill the prerequisites set by the credit card provider, you can apply for and own a student credit card and start building your credit score.
Different providers have different requirements but most of the time, they are very similar to the requirements when applying for a standard credit card.
Best Credit Card for Students in India
There are a lot of student credit cards in India. One of which is the SBI Student Plus Advantage Credit Card which is usually given to customers who already have an education loan with the State Bank of India.
This student credit card allows the user to make good use of the credit limit. Users can even get 1 reward point for every Rs.100 spent using the card for various transactions. The annual fee can be waived depending on how much you have spent.
With this card, you will need to spend Rs.35,000 a year for your annual fee to be waived. There is also a 2.5% fuel surcharge waiver. Additionally, you can use the card for purchases abroads and even withdraw cash from millions of Visa outlets all over India.
Bihar Student Credit Card
The Bihar Student Credit Card is another great student credit card in India, especially for those financially-disadvantaged students who want to pursue higher education in universities and colleges across India.
With the use of this student credit card, you can get a loan of up to Rs.4 Lakh to be utilized for different areas in your studies such as books, laptops, and even your tuition. The chargeable interest is at 4% which is one of the lowest in India and it is even lower for female, transgender, and disabled students down to 1%.
The card offers a very flexible mode of payment for students to pay back their debt. If you enroll for a 4-year course, you don’t need to pay the loan during that time while you’re still studying the course. You can do so after you have either graduated or you already have a stable income.
Student Credit Card Application Documents You Need to Prepare
Many qualifications and requirements are very similar to applying for a standard credit card. The only difference is those credit card providers require you to be enrolled in a university or college to apply for or receive approval for a student credit card.
Some providers also require you to have a student loan before you can apply. In addition, you must provide school documents to prove that you are currently enrolled and other documents like proof of identity such as your Aadhar card or Pan card.
You will also need to provide certain government-issued IDs as well as evidence of address such as your power bill or any bill that will feature your current address.
Take note that these providers are very strict with their educational qualifications and requirements for you to apply for their student credit cards so be prepared.
How to Apply for a Student Credit Card
To apply for a student credit card like the SBI Student Plus Advantage Credit Card, head over to their official website and select the card. Select Apply, then complete the application form and upload the required documents.
Take note of all the spelling and make sure you have all the documents uploaded correctly. Review the information and the terms and conditions before submitting them.
Wait for their reply within a few business days and upon approval, you will receive your new student credit card in a few days.
Credit Card Benefits You Can Enjoy as a Student
When you apply for a student credit card, you might reap a lot of advantages. Most student credit cards often provide you with extra features so it is not heavy on your budget.
There is frequently no membership fee for student credit cards and sometimes, they also waive the annual fee so you can enjoy using the card at any time.
Student credit cardholders also get to enjoy different perks and rewards such as cashback and reward points that can be redeemed for more rewards.
There is also less hassle during application as there are lesser documents required by the provider to apply for a student credit card.
Why It is Important to Build Your Credit Now
Student credit cards are used to help students who struggle financially and provide them with better financial options. Many also use their student credit cards to start building their credit as early as possible.
It’s critical that you begin building up credit now as it teaches you the responsibilities of having a credit card and being in control of your finances. When you start early, you have a better chance of improving your credit score or fixing it if it does go awry.
If you wish to build your credit score or gain financial independence at an early age, go ahead and apply for a student credit card. Students in India can finally apply for a student credit card with less hassle and more freedom and benefits. Go ahead and check which one suits you the best and apply for it!