Karur Vysya Bank Credit Card Against FD

What is a Karur Vysya Bank Credit Card Against FD?

KVB credit card against FD is a secured credit card offered against a fixed deposit held with the bank. KVB offers three such cards: the KVB Platinum Credit Card, KVB Honour Credit Card, and KVB Corporate Credit Card. It provides a credit limit based on the FD amount and suits young professionals who are starting their careers and may not yet have a credit history. While the card remains active and continues to earn high FD interest rates. 

Karur Vysya Bank Credit Card Against FD Features

Karur Vysya Bank credit card against FD comes with these features:

• Credit Limit Based on FD: The credit limit is directly linked to your fixed deposit amount. For the KVB Platinum Credit Card, the limit ranges from ₹25,000 to ₹5,00,000. For the KVB Honour Credit Card, the credit limit ranges from ₹1,50,000 to ₹10,00,000, depending on the fixed deposit placed under the lien.
• Joining Fee and Annual Fee: All three KVB credit cards against FD have no joining fee. The KVB Platinum Credit Card has an annual fee of ₹599, the KVB Honour Credit Card charges ₹999 annually, and the KVB Corporate Credit Card comes with an annual fee of ₹1,000.
• Interest-Free Period: All Karur Vysya Bank credit cards against FD offer an interest-free period of up to 45 days on retail purchases.
• Card Replacement Policy: The card replacement fee for Karur Vysya Bank credit cards against FD varies by card type. 
• Add‑On Card Feature: Karur Vysya Bank allows free add‑on cards with its FD‑backed Platinum, Honour, and Corporate Credit Cards, enabling family members to share the secured credit limit at no additional cost.

Pros and Cons of Karur Vysya Bank Credit Card Against FD

Here’s a quick look at the main advantages and limitations of the Karur Vysya Bank credit card against FD:

Application Process for Karur Vysya Bank Credit Card Against FD

To apply for a Karur Vysya Bank credit card against FD, follow these steps:

1. Open or select an FD: 

   Ensure you maintain a fixed deposit that meets the minimum required limit (₹25,000 for Platinum; ₹1,50,000 for Honour).

2. Apply through KVB's official platform: 

   You can apply online via the KVB website or visit your nearest branch and specify the FD-secured credit card option.

3. Set up FD lien: 

   Submit a request to place your FD under lien along with a credit card application.

4. Submit documentation: 

   Provide basic KYC documents (ID, address proof), FD details, and your application form.

5. Bank processes the application: 

   Once the FD lien is accepted, Karur Vysya Bank reviews the application, finalises the credit limit based on the deposit amount, and proceeds with issuing the credit card.

6. Receive and activate: 

   You will receive your credit card by post; activate it according to the provided instructions and begin using it after linking your PIN.

Closure Process for Karur Vysya Bank Credit Card Against FD

Closing a Karur Vysya Bank credit card against an FD is a straightforward process. The key steps are:

• Settle Dues - First, you need to clear any outstanding balance on your card. Make sure all payments, including any fees, are fully settled.
• Submit Closure Request - Visit your Karur Vysya Bank branch and submit a written request to close the credit card. Be sure to include your card number and clearly state your intention to close the card and release the associated FD.
• FD Lien Release - Once your closure request is processed, the bank will release the lien on your Fixed Deposit. This means the FD is no longer held as security, and you regain full access to your funds.
• Final Steps - After the closure is complete, return or destroy the physical card by cutting through it. For your records, it's also a good idea to get a written confirmation from the bank stating that the credit card account is closed and the FD lien has been removed.

Who Should Consider Karur Vysya Bank Credit Card Against FD?

The following are the categories of individuals who may benefit from a Karur Vysya Bank credit card against FD:

• Young Professionals: Those starting their careers without an established credit history or income proof.
• Homemakers and Retirees: Individuals with savings but no regular income source who want access to credit.
• Self-Employed and Freelancers: Those with irregular income who may not meet traditional credit card eligibility criteria.
• Small Business Owners: Entrepreneurs who want to manage business expenses with a secured credit line using a fixed deposit.

Key Takeaways

Karur Vysya Bank credit cards against FD are issued against a fixed deposit and are suitable for individuals without income proof or an existing credit history. It functions like a regular credit card, supporting bill payments, online transactions, and EMI options. The fixed deposit remains active and continues to earn interest at the applicable FD interest rate. The credit limit depends on the card type, with a maximum limit of up to ₹10 lakh available on the Honour Card. This secured credit option also helps users gradually build or improve their credit profile.