Saraswat Bank Credit Card Against FD

What is a Saraswat Bank Credit Card Against FD?

A Saraswat Bank credit card against FD allows customers to use a secured credit card by pledging their fixed deposit as collateral. The bank offers term deposits ranging from 7 days to 10 years, with Saraswat Bank FD rates between 3.25% and 6.80% per annum. Even after being pledged, the FD earns interest, allowing you to grow your savings while using the credit limit. The linked fixed deposit must have a minimum tenure of 1 year under any regular FD scheme with auto-renewal (excluding Kar Mukti, Short-Term Deposit, and Minor accounts). Since no income proof or prior credit history is required, this facility provides an easy way to access credit while maintaining your investment.

Saraswat Bank Credit Card Against FD Features

Saraswat Bank credit card against FD comes with straightforward eligibility criteria and hassle-free application process. Here are the prominent features of this card:

• Credit Limit: Up to 80% of the FD’s face value, subject to a minimum card limit of ₹5,000 and a maximum of ₹10 lakh.
• Cash Limit: Up to 40% of the sanctioned credit limit can be withdrawn as cash.
• Interest-Free Period: Enjoy up to 50 days of interest-free credit, provided the previous month’s dues are fully cleared.
• Reward Benefits: Get 100 welcome bonus points on activation, redeemable at partner merchants.
• Smart EMI Option: Purchases above ₹2,500 can be converted into EMIs for 3, 6, 9, or 12 months at 1.25% per month, excluding fuel, cash, and jewellery spends.
• No Income Proof Required: Applicants must not submit income documents or prior credit history to obtain the card.
• Credit Score Building: Timely repayment helps enhance your CIBIL score and improve long-term creditworthiness.
• Lifetime Free Card: No joining or annual fees; add-on cards are also free.

Pros and Cons of Saraswat Bank Credit Card Against FD

Saraswat Bank card against FD comes with the following advantages and shortcomings:

Application Process for Saraswat Bank Credit Card Against FD

You can apply for the Saraswat Bank credit card on an FD offline or online. The steps for each method are discussed below:

Online Application Process

You can apply for a Saraswat Bank credit card against FD via the bank’s digital platforms; the underlying steps are:

• Maintain an FD: Ensure you have registered for a term deposit with the Saraswat Bank for a minimum of 1 year.
• Use the Bank’s App or Website: Visit the Saraswat Bank’s official website or the GoMo NxT app. Now, find the section regarding credit cards and click on the “Apply Now” button.
• Form Filling: Fill out the fixed deposit’s details, your personal info, and other required data. 
• Upload the Required Documents: Upload these documents (in scanned version): PAN card, address proof, and a passport-size photo.
• Verification by Bank: Saraswat Bank will verify your uploaded documents and details in the form.
• Card Issuance: After the successful verification by the bank, the credit card will be sent to your registered address. Subsequently, you can generate your green PIN online through the bank’s website or the GoMo NxT app.

Offline Application Process

Customers who prefer face-to-face support can head to a Saraswat Bank branch. The steps for the offline application process of the Saraswat Bank card against FD are listed below:

• Get the form: First, get the form for availing this facility from any bank branch.
• Use the FD Account: Novice users can start with a new account (by depositing min. ₹1,000). Ascertain that the deposit’s tenure follows the bank’s requirement.
• Form Filling: Fill in all details requested in the form.
• Authorisation for Lien: Provide consent for the bank to put a lien on your deposit as security for the credit card.
• Documents Submission: Make sure to submit the form by attaching documents like your PAN card, a valid address proof, and an FD receipt marked with a lien in favour of the bank.
• Bank Verification: The branch personnel will verify your documents and FD account details and then process them.
• Card Issuance: After verification, your Saraswat Bank credit card gets approved and sent to your address within a few working days.

Closure Process for Saraswat Bank Credit Card Against FD

You can follow these steps to close the Saraswat Bank credit card against FD facility: 

• Dues Clearance: You must request the closure after ensuring no pending balances. If the sum is pending, settle it.
• Submission of the Closure Request: You need to send this closure request by connecting with the customer staff, an offline visit to the bank’s branch, or via the website/app.
• Release of Lien: After the bank processes your requests and your outstanding balances are cleared, the lien marked on your FD will be released, usually within a few working days.
• Adjustment of Unpaid Amounts: If the bank notes that there are due amounts on your card, it can recover them by card; the bank reserves the right to recover them by adjusting against the fixed deposit.
• Effect on Interest Due to Recovery: In the scenario of recovery from the FD, the interest reduction happens or applicable charges are levied, according to Saraswat Bank’s policy.

Note:

• All account holders should sign the closure request if it is a joint FD account.
• Upon the cardholder's demise, the deposit is credited to the account of the legal heir or the nominee (after settling the remaining dues).
• If your fixed deposit is set to auto-renew, the lien placed for the credit card remains active until you officially close the card account.

Who Should Consider a Saraswat Bank Credit Card Against FD?

The following profiles can avail the Saraswat Bank card against FD facility:

• Students: No need for the income proof; they can build a credit history early.
• Homemakers: They can access credit using a family-held FD without providing personal income documents.
• Beginner Credit Users: First-time credit users can use this facility as a safe approach to begin their journey to a strong credit score.
• Senior Citizens: The approval process is easy; the fixed deposit keeps earning interest.
• Joint FD Holders: It can be availed when all joint holders consent to the lien. This makes the facility a practical tool for collaborative financial management.
• Professionals with Irregular Income: No income verification required; credit limit is based on the FD value.

Key Takeaways

Borrowers who want to access credit with minimal requirements can opt for the Saraswat Bank credit card against an FD. Applicants need to maintain the minimum fixed deposit amount of ₹6,500, and subsequently, they will get a card whose credit limit is linked to their deposit. The FD continues earning interest at the existing FD interest rates. Easy documentation, no strict eligibility, and the opportunity to improve the credit score are some of the prime advantages of this scheme.