Mahindra Finance Credit Card Against FD

What is a Mahindra Finance Credit Card Against FD?

A Mahindra Finance Credit Card Against FD is a secured credit card issued by placing a fixed deposit with the institution. Applicants must be 18 to open a fixed deposit account with Mahindra Finance. The card can be used for everyday transactions under standard terms. The fixed deposit continues to earn cumulative interest at prevailing Mahindra Finance FD rates between 6.75% to 7% per annum for general citizens. No income proof or credit history is required, making it a convenient option to access credit while maintaining savings.

Mahindra Finance Credit Card Against FD Features

Mahindra Finance offers Fixed Deposit (FD)-backed credit cards, providing access to credit facilities even for customers without a credit history. The key features of this offering are as follows:

• Helps Build Credit Score: Using the FD-backed credit card responsibly contributes to building a credit history.
• No Income Proof Required: Applicants are not required to submit income documents.
• Eligibility: Customers above 18 can apply for an FD-backed credit card, provided they have an existing FD with Mahindra Finance.
• Loan Against FD: Mahindra Finance offers loans against FDs up to 90% of the deposit amount, with interest charged over the applicable FD rate.

Pros and Cons of Mahindra Finance Bank Credit Card Against FD

The following table outlines the key advantages and disadvantages of the Mahindra Finance credit card on FD for a comprehensive comparison:

Application Process for Mahindra Finance Credit Card Against FD

Applying for a Mahindra Finance credit card against FD involves the following steps:

Online Application Process

You can apply for a Mahindra Finance credit card against FD conveniently through the bank’s online portal:

• Visit the Official Website: Go to the Mahindra Finance Fixed Deposit page.
• Open a Fixed Deposit: Complete the online application to open a fixed deposit account.
• Fill Out the Application Form: Provide personal details, FD information, and other required fields in the online application form.
• Upload Documents: Submit scanned copies of documents such as PAN card, valid address proof (Aadhaar, Voter ID, Passport, Driving Licence), and a passport-size photograph.
• Verification: During verification, the bank verifies your details and FD.
• Approval: The credit card is approved and dispatched to your registered address after successful verification.

Offline Application Process

Applicants who prefer in-person assistance can apply for a Mahindra Finance credit card against FD by visiting a branch:

• Visit the Nearest Branch: Go to your nearest branch and request the application form for a credit card against FD.
• Place a Fixed Deposit: If you don’t already have one, open a fixed deposit of at least ₹5,000. Ensure the FD tenure meets the bank’s requirement.
• Complete the Application Form: Fill in the form with details of the FD you want to link to the credit card.
• Submit Required Documents: Attach a passport-size photograph, PAN card, valid address proof, and an FD receipt marked with a lien in favour of the bank.
• Bank Verification: The branch staff will verify your documents and FD details before forwarding the request for processing.
• Issuance of Card: Once verification is complete, the credit card is approved and dispatched to your address within a few working days.

Closure Process for Mahindra Finance Credit Card Against FD

The steps to close a credit card linked to a fixed deposit with Mahindra Finance are as follows:

• Settle Outstanding Dues: All pending amounts on the credit card should be cleared before requesting closure.
• Initiate Closure Request: Submit your closure request by visiting a Mahindra Finance branch, contacting customer care, or using the bank’s digital channels.
• Release of Lien on FD: After processing the closure and clearing dues, the lien on the fixed deposit will be lifted, typically within a few business days.
• Recovery from FD: Any unpaid balance may be recovered by adjusting the amount against the fixed deposit.
• Effect on FD Interest: Recoveries from the FD may lead to applicable charges or a reduction in interest as per Mahindra Finance’s rules.

Who Should Consider a Mahindra Finance Credit Card Against FD?

A Mahindra Finance credit card against FD suits customers or entities holding a fixed deposit with the financial institution and seeking credit against it. The following groups may find this option beneficial:

• Students and Homemakers: Customers without regular income proof can utilise a fixed deposit to secure a credit card.
• First-Time Credit Card Users: Depositors new to credit can use this card to establish a credit history and improve their credit score.
• Applicants Seeking Minimal Paperwork: Since the card is secured against an FD, documentation requirements are minimal, facilitating a quicker application process.

Key Takeaways

The Mahindra Finance Credit Card Against Fixed Deposit provides a secured credit option for customers needing access to credit with minimal documentation. By maintaining a Fixed Deposit of ₹5,000 or more, customers can open an FD account with Mahindra Finance and earn interest at the prevailing FD interest rates. This card suits first-time credit users, students, or customers without an established credit history. It allows them to access credit, manage expenses, and gradually build their credit profile securely and conveniently.