Indian Bank Credit Card Against FD

Indian Bank Credit Card Against FD: Interest & Penalty Rules

• Closed in under 7 days: No interest is credited to your account.

• Deposits up to ₹5 Lakhs: No penalty is charged if the deposit has run for at least 181 days. If closed before 181 days, a 1% penalty is deducted from the applicable card rate.

• Deposits above ₹5 Lakhs: A 1% penalty applies on premature withdrawal regardless of the 181-day mark. The interest rate is the card rate for the actual period run minus 1%.

• Exemptions: Staff, ex-staff, senior citizen depositors, and certain corporate/institutional deposits are exempt from foreclosure charges.

• Lien Restriction: An FD pledged for a credit card carries an active bank lien. You cannot prematurely withdraw or close the deposit without first settling all outstanding card dues, closing the credit card, and having the lien released.

• Bank's Right of Set-Off: In the event of unpaid credit card dues or default, the bank reserves the right to prematurely close the linked deposit and adjust the outstanding amount directly against the FD funds.

Indian Bank FD-Backed Credit Card Variants & Credit Limits

Indian Bank allows customers to choose between Visa and RuPay credit cards against an eligible Term Deposit. The credit limit shall be the lower of 90% of the amount deposited and ₹10 lakhs.

Why Choose an Indian Bank Secured Credit Card?

The Indian Bank secured credit card provides a credit facility backed by a lien-marked Term Deposit. The bank provides the option of having a credit limit of 90% of the amount in the deposit, with the condition of not exceeding ₹10 lakh. The Indian Bank FD interest rates applicable to the term deposit continue as per the bank’s prevailing terms.

Another advantage is the online availability of the facility. Indian Bank states that customers can access the term loan, overdraft or credit card against term deposit service online, eliminating the need to visit a branch for the online process. If you are comparing options, a credit card against FD is ideal for building credit without standard income documentation.

Indian Bank Credit Card Against FD Eligibility

The IB credit card against FD eligibility is linked to the type and ownership of the Term Deposit. Key requirements include:

• Individual customer: The facility is available to individual customers.

• FD Eligibility Criteria: An unencumbered term deposit should be available under an individual's name only.

• Mode of Operation: Self/ Either/ or Survivor Mode of Operation applies to the deposit.

• Aadhaar: For the online facility, a valid Aadhaar and a registered mobile number of the Term Deposit account holder should be available in the CIF.

• Not eligible for multiple facilities: Multiple credit facilities against a single Term Deposit are not allowed.

• Excluded deposits: Variable Recurring Deposits, deposits in a minor's name and IB Tax Saver Deposits are not eligible for the online facility.

Documents Required for Indian Bank FD-Backed Credit Card

The bank's online facility requires the Term Deposit holder to have a valid Aadhaar linked with a registered mobile number in the CIF. Also, the deposit should satisfy all relevant requirements of ownership and operation. For the online facility, the customer should have a valid Aadhaar and a registered mobile number available in the CIF, along with the details of the eligible Term Deposit.

• Details of Aadhaar

• Registered mobile number

• Details of Indian Bank Term Deposit

• Customer/CIF Details

• KYC details where necessary

The exact documentation may depend on the customer's existing KYC status and the bank's application process.

How to Apply for Indian Bank Credit Card Against FD

Indian Bank provides an online facility for availing a credit card against an eligible Term Deposit. The bank states that the service can be accessed online, removing the need to visit a branch for the online process.

The following procedure should be followed for using online services:

• FD: Keep a Term Deposit which qualifies for the Indian Bank online credit facility.

• Check eligibility of FD: Make sure the FD is eligible for this service according to the criteria.

• Access online facility: Use the online credit facility of Indian Bank.

• Select card: Choose the available Visa or RuPay credit card option.

• Verify details: Verify the FD and customer's information.

• Submit application: Go through the process of online application for getting the card.

• Receive card: The card is issued after the applicable approval and processing.