Shriram Finance Credit Card Against FD

What is a Shriram Finance Credit Card Against FD?

Shriram Finance Credit Card Against FD is an FD-backed financial product with minimum investment of ₹5,000. Applicants aged 18 to 60 can apply as primary cardholders. Add-on cardholders must be at least 18 years old. The card can be used for everyday transactions under standard terms, making things easier for all Shriram Finance customers. Senior citizens aged 60 years or above earn an additional 0.50% Shriram Finance FD rates per annum on their deposits. Renewed matured deposits get an extra 0.15%, and women depositors receive an additional 0.05% interest annually.

Shriram Finance Credit Card Against FD Features

Below are the key features of the Shriram Finance credit card against FD that you can benefit from:

• Flexible Credit Limit: Get up to 75% of the FD value, offering flexibility for everyday spending.
• Tenure Options: Choose FD tenures between 12 and 60 months to suit your financial goals.
• No Income Proof Required: The card can be availed without submitting income documents or having an existing credit history, making it suitable for first-time applicants.
• Payout Options: Select between cumulative (interest compounded till maturity) or non-cumulative (regular interest payout) schemes.
• Builds Credit Score: Timely repayments help improve or build a strong CIBIL score.

Pros and Cons of Shriram Finance Credit Card Against FD

A Shriram Finance Credit Card on FD comes with several advantages and limitations that customers should consider before applying:

Application Process for Shriram Finance Credit Card Against FD

Applying for a Shriram Finance Credit Card against an FD can be done online and offline. The step-by-step procedures for each method are given below:

Online Application Process

Customers can apply for a Shriram Finance FD-backed credit card directly through digital platforms by following these steps:

• Visit the Website: Go to Shriram Finance and find the FD-backed credit card section.
• Select Credit Card Option: Choose the FD-backed credit card and click Apply Now.
• Open/Link FD: Open a new FD meeting the minimum requirement or link an existing one.
• Fill Application: Enter personal details, FD account number, deposit amount, and tenure.
• Upload Documents: Submit PAN, valid address proof (Aadhaar, Passport, Voter ID, or Driving Licence), and a passport-size photo.
• Verification & Approval: Bank verifies details, holds the FD, and issues the credit card upon approval.

Offline Application Process

Applicants who prefer in-person assistance can visit a Shriram Finance branch and apply for the credit card against FD:

• Visit the Nearest Branch: Request the application form for a credit card against FD.
• Place or Link a Fixed Deposit: Open a new FD with the minimum required amount or link your existing FD.
• Complete the Application Form: Fill the form with personal and FD details.
• Submit Documents: Attach a passport-size photograph, PAN card, address proof, and FD receipt marked with a lien in favour of Shriram Finance.
• Bank Verification: Branch officials verify all details before processing the request.
• Issuance of Card: Once verified, the credit card is approved and delivered to your address within a few working days.

Closure Process for Shriram Finance Credit Card Against FD

Here’s how you can close your credit card linked to a fixed deposit with Shriram Finance:

• Clear Outstanding Balance: You must settle all due amounts on the credit card before initiating closure.
• Submit Closure Request: Visit the nearest Shriram Finance branch or contact customer care to request closure.
• Lien Release on FD: After settlement, the lien on your fixed deposit will be removed in a few working days.
• Adjustment Against FD: If any dues remain unpaid, Shriram may recover them by adjusting against your FD.
• Impact on FD Interest: If recovery happens from the FD, charges or a reduction in interest may apply as per Shriram’s policy.

Who Should Consider a Shriram Finance Credit Card Against FD?

Shriram Finance FD-backed credit cards benefit customers seeking a convenient borrowing option with minimal paperwork. The following profile may find this option beneficial:

• First-time Credit Card Users: Suitable for those with no previous credit history who wish to build their CIBIL score using their Shriram Finance FD as security.
• Salaried and Self-employed Individuals: Depositors looking for a convenient borrowing option without affecting their savings or breaking an existing FD.
• Low CIBIL Score Applicants: Customers with a weak or limited credit profile can obtain a secured card easily, as approval is based on FD value, not credit score.
• Business Entities: Partnership firms, private or public companies, and associations maintaining FDs with Shriram Finance can use this card for business-related transactions.
• Trusts and Foundations: Eligible trusts (except those registered under Section 12A of the Income Tax Act) can avail of the credit facility against their deposits.

Key Takeaways

The Shriram Finance Credit Card Against Fixed Deposit offers a practical solution for customers seeking access to credit with minimal documentation. By placing a fixed deposit of at least ₹5,000, applicants can obtain a credit card with a limit linked to their deposit, while continuing to earn interest at prevailing FD interest rates. With straightforward eligibility criteria, minimal paperwork, and key features, this FD-backed card is well-suited for customers new to credit, students, homemakers, and existing FD holders aiming to maximise the utility of their savings.