Kerala Gramin Bank Credit Card Against FD

What is a Credit Card Against FD?

A credit card against FD is a secured credit card that is offered against a fixed deposit account. The FD serves as the security, and hence approval is easier than for regular secured credit cards. The credit limit is provided in the form of a percentage of the FD amount, typically 75% to 90%. But, this is not officially available in Kerala Gramin Bank and is not mentioned on their official website.

Kerala Gramin Bank was formed through the merger of South Malabar Gramin Bank and North Malabar Gramin Bank and operates under the sponsorship of Canara Bank. Customers looking for a credit card against FD can explore options offered by other public and private sector banks or NBFCs for easier approval and credit-building benefits.

Top Banks Offering Card Against FD

The most common FD-backed credit card offerings in India are mentioned below in a table:

Advantages of Credit Card Against FD

Customers seeking the convenience of easier approval, limitless spending, and credit building are generally the ones who opt for credit cards over FD. The key advantages are:

• Simpler Approval: With the card secured by a fixed deposit, the approval process is somewhat easier than with regular unsecured credit cards.
• For First-Time Users: Investors who have no credit history and want to establish their credit score can use these card for improving there credit history.
• Lower risk for banks: The use of fixed deposits as security to the bank makes the issuance of FD-backed credit cards easier, with the user receiving the applicable FD interest rate on the amount deposited.
• Supports Credit Score Building: Using the card responsibly and making timely repayments may help improve the credit score over time.
• Improved spending control: Usually the credit limit will be associated with the FD amount and this can help to make more controlled and disciplined spending.

Difference Between Credit Card Against FD (Secured) & Unsecured Card

Unsecured credit cards and credit cards against FD work the same, but there are certain differences in terms of credit limit, eligibility and application procedure.

Tips for Credit Card Against FD Usage

By responsibly using a credit card against FD you can improve your credit history and even your finances in time. Some tips which may help:

• Pay Credit Card Bills on Time: Late payments can have a negative impact on your credit rating, and they can also lead to late payment fees.
• Keep Low Credit Utilisation: Using a small fraction of your available credit limit is likely to improve overall credit.
• Review Monthly Card Statements Carefully: Review card statements monthly to track transactions, monitor spending, and identify any incorrect charges.
• Do not Pay the Minimum: Minimum payments can actually end up costing more in interest and may keep you in debt longer.
• Compare Card Features Before Applying: Different banks may offer varying fees, rewards, eligibility criteria, and credit limits on secured credit cards.

Limit & Eligibility Criteria for a Credit Card Against FD

Credit limit and eligibility of a credit card against FD usually depend on the fixed deposit amount and the bank’s policies.

Key Takeaways

A credit card against FD is a secured credit card that is issued with the help of a fixed deposit account, and the credit limit is usually around 75% to 90% of the fixed deposit amount. This facility is not officially available at Kerala Gramin Bank. If a customer has a savings account, they can find FD-backed credit cards from other banks as they can be more readily available and can help them establish credit history.