What is a student credit card?

Student credit Card is meant for students and their expenses. They are extremely helpful with daily payments, offer rewards on shopping and travel, and can help a student build their credit score over the years.

While the concept of student credit cards is literally new in India, it is fast emerging as a tool for financial independence and growth.

Let’s find out what is a student credit card, how it works, and its benefits.

What is a Student credit card and how does it work in India?   

A student credit card is a credit card meant exclusively for college students. Students must be above the age of 18 years of age to avail of this card.

Only some specific banks like SBI and HDFC banks offer this facility in India. A majority of college students going abroad generally opt for credit cards or forex cards. It is a new and emerging financial concept in the country. 

Some state governments help students get student loans at a concessional rate and have also launched Student Card Schemes such as the West Bengal Student Credit Card Scheme and the Bihar Student Credit Card Scheme.  

In order to apply for these cards, students must be above the age of 18 and enrolled as a student in a recognized institution. These cards are valid for 5 years with minimal or no annual fees. Banks do not charge a maintenance fee for student credit cards.

Student credit cards have a relatively low credit limit so that students do not end up overspending. 

It is a great way to help your child learn finances and budgeting. Maintaining their credit limit and credit score can help them create a healthy financial record over a long period of time.  

Who can apply for these cards?    

The basic criteria for student credit cards are age and enrolment. A student needs to be above the age of 18 years and must have a valid student ID from a recognized university/institution.

Being enrolled in college is one of the most important criteria for acquiring this card.

Why should you get a Student credit card?

There are many reasons to get a student credit card, Let’s look at some of them:   

• Student credit cards help build creditworthiness and credit score. Students can start building a financial record and gain financial independence. It helps them understand the importance of limit utilization, regulate their spending habits, and understand reward features, and repayment mechanisms while building a strong credit score for their adult lives.  
• Student credit cards can be a backup and an emergency plan. If you as a student are in need of funds but don’t have cash reserves, then you can use your credit card immediately. It allows you to make the repayment later and fulfill your financial obligations 
• Helps in saving money and using discounts. A student credit card can get you amazing offers and discounts. It can help you minimize your expenses since books, stationery, and gadgets can be expensive. Many platforms offer exclusive offers exclusively to students. This can help you stay on budget and build savings for yourself as well. 
• Another reason to get a student credit card is to gain financial independence and learn budgeting. As a cardholder, you will be responsible for all your expenses and repayments. This will help you analyze your spending habits and understand how to stay on track. Defaults on credit cards reflect poorly on your credit score and history, this is a good incentive to manage your repayments and spending carefully. 

List of best student credit cards   

Here are some of the best student credit cards in India   

• SBI Student Plus Advantage Card 
• Axis Bank Insta Easy Credit Card   
• ICICI Bank Student Travel Card 
• HDFC Bank’s ISIC Student ForexPlus Card 

What is the application process for student credit cards in India?    

You do not require a list of documents to apply for a student credit card in India. Here are the following documents you must provide along with an application form given by the bank: 

• PAN or any other government-approved photo ID   
• Aadhaar Card or any other government-approved address proof   
• Birth Certificate   
• College Identity Card or any other proof of enrolment   
• Passport-sized photographs   
• Evidence of Education Loan and or Fixed Deposit (as per the credit criteria of the bank)