What is Student Credit Cards Scheme and How to Apply for it?

Nowadays, Credit Cards have emerged as the most popular type of credit instrument in India. Unlike earlier times, people today use credit cards for almost every of their need, starting from financial emergencies to day-to-day shopping. 

With the increasing demand of service by the audience, financial institutions provide a variety of credit cards that, too, with unique features and benefits.

Further, to attract and connect with the younger generation and satisfy their monetary and fiscal needs, financial institutions started providing a student credit card as well. 

That means the students who are either studying in India or abroad can easily use the credit card and its facilities to manage their everyday expenditures, such as buying course-related books, leisure activities, transportation, etc.

In this blog, we will be dealing with the concept and process to apply for student credit card.

Concept of Student Credit Card

Nowadays, the up and coming generation is complete technologically savvy, which require convenience and speed to access the funds. So, to match up the students need, banks have started providing student friendly credit cards. 

Furthermore, many banking institutions offer the best credit card schemes for students, based on their eligibility, requirement, and preference. Also, it shall be noted that credit cards for college going students come with affordable and low interest rates and attractive offers. 

Moreover, a student credit card interest rate is developed in such a manner that a student can easily and conveniently repay the debt over time.

Who can Apply for Student Credit Card?

Whether a child is planning to pursue his/ her higher education in the hometown or is currently away from home, just get in touch with a trusted and reliable financial provider and check the best deals on credit cards that students can get. 

Later on, it is the student’s utmost responsibility to wisely use the credit cards for students, as it might affect his/ her credit score.

Therefore, before a person goes out on the pursuit to get himself/ herself a credit card, make sure that he/ she knows everything about the concept of student credit cards in India. 

Process to Apply for Student Credit Card

Just like any other credit card approval application, a student can apply for the student credit cards both online and offline. However, it shall be noted that the offline process to apply for student credit card can turn out to be a tedious and time-consuming.

Offline Process to Apply for Student Credit Card

The offline process requires the prospective borrower to visit the respective financial provider’s branch in person. 

After that, meet with an appointed representative who will guide the borrower regarding the process on how to apply for a credit card with them. 

If in case he/ she passes the eligibility criteria, and possess the necessary documents, then fill the credit card application form and he/ she will receive his/ her student credit card in a few days.

Online Process to Apply for Student Credit Card

The steps included in the online process to apply for student credit card are as follows:

1. Visit the official website of the Issuer;
2. Now, go to the credit card section;
3. After that, check the eligibility for the student credit card;
4. Fill the online details for credit cards for students’ application form;
5. Upload the supporting and required documents on the same portal;
6. Once the documents are duly submitted, together with the student credit card application, an appointed representative from the issuer side will get in touch with the said student for further procedures;
7. Upon approval, the issuer will immediately and instantly dispatch the allotted credit card;

Eligibility Criteria for Student Credit Card

The eligibility criteria for the student credit card can be summarised as:

1. The minimum age limit for applying a student credit card is 18 years old and above;
2. The individual requires to be either in college or university to become eligible for a student credit card;
3. The credit card issuer will ask the parents or guardians of the said student to open a fixed deposit (FD) account in the same bank to get a student credit card;
4. Some banking and financial institutions make it mandatory and compulsory to open a savings account that, too, with a minimum quarterly balance, before issuing a student credit card;
5. Some banking or financial institutions give student credit cards to only those people who have availed of an education loan with them;

Documents Required to Apply for Student Credit Card

The basic documents required to apply for student credit card are as follows:

Basic Features of Student Credit Card

The basic features of student credit card can be summarised as:

1. It comes with the facility of low credit limit, so that the students do not over-spend and get themselves into financial debts;
2. It comes with the facility of low cash withdrawal limit, so that students can use the funds wisely and fairly, and only in case of emergencies;
3. The said credit card comes with a validity of five financial years;
4. The credit card can easily be converted into a standard credit card, once the student or holder finishes his/ her required professional education;
5. Students can get the limit of credit card increased, based on their respective employment and income status;

Benefits of Student Credit Card

The benefits of student credit card can be summarised as:

1. It teaches students to manage their finances under the control and also repaying debts on time that, too, from a very young age;
2. Prompt settlement of student credit card aids them by building a good credit score;
3. Students get to earn reward points, offers, and discounts on various items;
4. There is no fee levied on applying for a student credit card;
5. Also, no additional charges are applicable, if in case the student requires a duplicate credit card;

Banks that Provide Student Credit Cards in India

Though the idea of student credit card is pretty new in India, however, there are some banks that offer the credit cards to the students. Further, some of the such banks that offer the cards in the country are as follows:

1. State Bank of India;
2. ICICI Bank;
3. Axis Bank;
4. HDFC Bank;

Furthermore, some of the best available Student Credit Cards in India are as follows:

1. SBI Student Plus Advantage Credit Card;
2. HDFC Bank Forex Plus Card;
3. ICICI Bank Student Travel Card;
4. HDFC Multicurrency Platinum Forex Plus Chip Card;

Conclusion

In a nutshell, a student credit card is relatively an affordable and the best financial instrument for the college-going students. As duly explained earlier, a student credit card has no annual charge or fee. However, this depends on the wish and will of the financial institution or bank that has issued the said credit card. So, getting into touch with the recognised issuer and check whether it offers a no fee student credit card or not are the basic perquisites to apply for student credit card.

Moreover, the minimum limit of a student credit card limit is up to Rs 15,000, and the said card is valid and operational for five years. Also, the limit is decided to a minimum, so that students do not waste or overspend and get themselves into financial debt burden from a young age.