AU Small Finance Bank Credit Card Against FD

What is AU Small Finance Bank Credit Card Against FD?

AU Small Finance Bank credit card against FD is a secured credit card issued by the bank, backed by a fixed deposit in the applicant’s name. Currently, AU Bank offers the NOMO Credit Card as its secured credit card variant. It works best for young professionals who are starting their careers and have no credit history, as it allows them to access credit and build their credit score.

The card is linked to a fixed deposit that continues to earn interest at the applicable AU Small Finance Bank FD interest rate. Cardholders can earn up to 7.25% interest on their deposit, which keeps growing even while it serves as collateral for the credit card.

AU Small Finance Bank Credit Card Against FD Features

Here are the key features of the AU Small Finance Bank credit card against FD:

• Reward Points: Cardholders using the AU Small Finance Bank credit card against FD can earn 2 reward points for every ₹100 spent on retail shopping, and 1 reward point per ₹100 on payments made towards utilities and insurance.
• Lower International Markup Fee: The AU Small Finance Bank NOMO Credit Card offers a reduced forex markup fee of just 0.99%, making international transactions more cost-effective for cardholders.
• Contactless Card Usage: AU Small Finance Bank credit card against FD enables secure and convenient tap-and-pay transactions without a PIN for amounts up to ₹5,000 at participating merchants.
• Railway Lounge Access: Recharge before your journey with 2 Complimentary Railway Lounge visits per calendar quarter using your NOMO Card. Add-on cardholders can also enjoy Railway Lounge Access within the mentioned complimentary number of visits.
• Milestone Benefits: With the AU Small Finance Bank credit card against FD, you earn 500 reward points for spending ₹25,000 in a quarter. If you spend ₹50,000 in the same quarter, you get another 500 reward points.
• Fuel Surcharge Waiver: The AU Small Finance Bank credit card against FD offers a 1% waiver on fuel surcharge for transactions between ₹400 and ₹5,000 at petrol pumps nationwide, with a maximum benefit of ₹100 per billing cycle.

Application Process for AU Small Finance Bank Credit Card Against FD

The following steps outline how to apply for the AU Small Finance Bank credit card against FD:

1. Ensure you have a qualifying Fixed Deposit: 

   Maintain an FD of at least ₹10,000 in your sole name, in cumulative, auto-renew mode with AU Small Finance Bank.

2. Visit the AU Bank website or a branch: 

   Apply online via the bank’s official portal under the "NomO Credit Card" section, or visit your nearest AU Small Finance Bank branch to express your interest.

3. Minimal documentation and instant approval: 

   The FD serves as collateral, so no detailed income proof or credit history checks are required. Basic KYC documents suffice, enabling quick or instant approval.

4. FD is lien-marked: 

   Upon submitting your application, the bank applies a lien on the FD and issues provisional approval almost immediately.

5. Receive and activate your card: 

   You typically receive the physical NOMO Credit Card within 7–10 business days. Activate it via phone banking or the AU mobile app, and begin using it like a regular credit card.

Closure Process of AU Small Finance Bank Credit Card Against FD

The following steps outline how to close your AU Small Finance Bank credit card against FD and release the lien on your FD:

1. Clear all outstanding balances: 

   Pay off any pending dues, including payments, interest, and any applicable fees on the credit card.

2. Contact the bank to request closure: 

   Reach out via phone banking, online chat, or visit your nearest AU Small Finance Bank branch to express your intent to close the card.

3. Submit an official cancellation request: 

   Provide a written or verbal confirmation to customer support or bank staff stating your request to close the NOMO Credit Card.

4. Bank processes the closure: 

   AU Small Finance Bank will formally cancel the credit card, typically within 7 working days, and remove the lien on your fixed deposit

5. FD reverts to normal status: 

   Once the lien is lifted, your FD returns to a regular status, and you can withdraw or manage it like any other deposit. Any earned interest continues to remain credited.

Pros and Cons of AU Small Finance Bank Credit Card Against FD

The table below highlights some pros and cons of the AU Small Finance Bank credit card against FD to help you make an informed decision:

Who Should Consider an AU Small Finance Bank Credit Card Against FD?

You may consider AU Small Finance Bank credit card against FD if you fall into one of the following categories:

• First-time credit users: Individuals with no credit history who want to start building their credit score through responsible usage.
• Young professionals: Those beginning their careers and unable to meet income eligibility criteria for regular credit cards.
• Self-employed individuals and freelancers: Applicants without stable income proof or salaried documentation can access credit based on their fixed deposit.
• Anyone looking for low-risk credit: Ideal for those who prefer not to take on unsecured debt but want the convenience of a credit card backed by savings.

Key Takeaways

The AU Small Finance Bank credit card against FD is a secured credit card issued against a fixed deposit and is ideal for individuals without income proof or credit history. It provides all standard credit card functionalities, including online payments, EMI conversions, and contactless transactions. The linked fixed deposit remains active and continues to earn FD interest rates up to 7.25% p.a.The card offers a credit limit of up to 100% of the FD amount, making it a practical option for those looking to build or strengthen their credit profile.