Indian Overseas Bank Credit Card Against FD

What is an Indian Overseas Bank Credit Card Against FD?

The Indian Overseas FD credit card is a secured credit card issued against a term deposit held with the bank. It is commonly used by students, homemakers, and young professionals who are new to credit or looking to rebuild their financial profile. The fixed deposit remains safe and continues to earn returns at competitive Indian Overseas Bank FD interest rates, while the card can be used for regular purchases, online transactions, and other standard credit card functions.

Indian Overseas Bank Credit Against FD Features

The following are some key features of the Indian Overseas FD credit card:

• No Minimum Credit Score Required: The Indian Overseas Bank credit card against FD is available even to applicants with a credit score below 650.
• Minimum FD Tenure of 180 Days: The fixed deposit must have a minimum tenure of 180 days (6 months) to qualify for the card issuance.
• Secured by Term Deposit: The Indian Overseas FD credit card is issued against a fixed deposit, ensuring responsible credit usage backed by savings.
• Domestic and International Use: The Indian Overseas Bank credit card against FD is accepted across Indian and international payment networks, allowing cardholders to use it for purchases both in India and abroad.
• Secured by Term Deposit: Your FD serves as collateral for the credit card, encouraging responsible credit usage by being backed by your savings.

Pros and Cons of the Indian Overseas FD credit card

Here's a quick comparison of the key advantages and limitations an Indian Overseas Bank credit card against FD to help you decide:

Application Process for Indian Overseas Bank Credit Card Against FD

To apply for the Indian Overseas FD credit card, customers must open a fixed deposit and follow a few simple steps as outlined below.

1. Open a Fixed Deposit

   • Visit the nearest Indian Overseas Bank branch and open a fixed deposit (FD) with a minimum amount of ₹10,000.

2. Collect and Fill the Credit Card Application Form

   • Request the application form for the IOB Secured Credit Card.
   • Fill in personal details, FD account reference, and nominee information if applicable.

3. Submit Required Documents

   • Submit valid KYC documents such as:
     • PAN Card
     • Aadhaar Card or other government-issued ID and address proof
   • No income proof or credit history is required.

4. Application Review and Verification

   • The bank will verify your FD details and KYC documents.
   • If all requirements are met, the application is approved under the secured credit card scheme.

5. Card Issuance and Dispatch

   • Once approved, the Indian Overseas FD credit card is processed.
   • The physical card is typically dispatched to your registered mailing address within a few working days.

Closure Process for Indian Overseas Bank Credit Card Against FD

Closing the Indian Overseas Bank credit card against FD is a simple process. The following are the steps to ensure your fixed deposit is released and the credit card is properly closed.

1. Clear Outstanding Dues

   • Ensure that all pending dues, including any interest or charges on the credit card, are fully paid. Interest on outstanding amounts is charged at 2% per month (24% per annum), so timely repayment is advisable.
   • You can check your latest outstanding balance via net banking, mobile banking, or by visiting the branch.

2. Visit the Branch and Request Closure

   • Visit your nearest Indian Overseas Bank branch and submit a written request for credit card closure.
   • Mention the FD reference number linked to your secured credit card.

3. Surrender the Card

   • Cut the physical credit card diagonally and return it to the branch (if requested).
   • This helps prevent misuse after the closure request is initiated.

4. Initiate FD Release

   • Once the card closure is approved and all dues are cleared, the fixed deposit used as collateral is eligible for release.
   • If the FD is prematurely closed or the lien is removed before formal closure, the credit card will be auto-blocked.

5. Collect Closure Confirmation

   • Request a written acknowledgement or SMS/email confirmation from the bank for your records.
   • This ensures there are no future liabilities or confusion regarding card status.

Who Should Consider an Indian Overseas FD credit card?

The Indian Overseas Bank credit card against FD is especially useful for the following categories:

• New-to-Credit Individuals: People who have never held a credit card or loan can Indian Overseas FD credit card. It helps establish a credit history without the need for prior credit experience.
• Students and Young Professionals: This card is suitable for students or early-career professionals who may not have income proof but can open a fixed deposit. It offers a secure way to start using credit responsibly.
• Homemakers and Retirees: Homemakers and retired individuals with savings can access credit without regular income. By securing the card against a term deposit, they can make purchases independently.

Key Takeaways

The Indian Overseas Bank credit card against FD is issued against a fixed deposit and is suited for individuals without income proof or an existing credit score. It provides standard credit card features such as online transactions, bill payments, ATM usage, and add-on card options. The fixed deposit remains active and continues to earn interest at the applicable FD interest rates. IOB secured cards offer a credit limit of up to 90% of the FD amount and help customers build or rebuild their credit profile.