4 Ways to Get Credit Cards for Pensioners in India

4 Ways to Get Credit Cards for Pensioners in India

Post-retirement is a time for a lot of changes in an individual’s life as they enter a new phase after work. The biggest challenge that a lot of people face after they’re done with their first innings is managing their finances. While there are different types of Credit Cards available, Credit Cards for pensioners offer them the option to take personal loans to pay off or borrow amounts they may need.

The amount that pensioners make may not be sufficient for daily expenses, especially when they have someone dependent on them. Personal Loans may be a little high for them to apply to, which is why arranging money through a Credit Card is a great option.

How Can a Pensioner Get Credit Cards?

There are five ways in which pensioners can get a Credit Card for themselves:

  1. Special Credit Cards for Pensioners:

There is one special card for pensioners being offered by the Bank of India. SBI Credit Card Types generally do not cover senior citizens, but they do have other offerings which make it easier for senior citizens to get money. The Credit Card that is specially designed for pensioners has a credit limit that is nearly three times the monthly pension amount that is earned.

This means that if for example, the pension per month is Rs. 25,000, then the credit limit that is offered is anywhere between Rs. 70,000-75,000. There is also no real joining fee on these cards, and the billing cycle begins from the 16th of a current month to the 15th of the next one.

  • Credit Card for Low Salaried Individuals:

While a lot of senior citizens want to continue working even after retirement to keep themselves busy, a few can take advantage of the same. If a pensioner wants to work as a self-employed consultant or run a small business, they can apply for Credit Cards at the different banks present all over India.

If their income is low, they can apply at the below banks as low-income earners:

Credit Card Name Minimum Monthly Income Required The bank issuing the loan
Visa Classic for Self-Employed Rs. 4,166 Vijaya Bank
Visa Classic for Salaried Rs. 5,000 Vijaya Bank
Classic for Salaried Rs. 5,000 Syndicate Bank
A classic for Senior Citizen Rs. 5,000 Syndicate Bank
Bharat Rs. 6,000 Indian Bank
India Card Rs. 6,250 Bank of India
Empowerment for Salaried Rs. 6,666 Jammu and Kashmir Bank
Canara Visa Classic/ Mastercard Standard Rs. 8,333 Canara Bank
Visa Global for Self-Employed Rs. 8,333 Vijaya Bank
Classic for Self Rs. 8,333 Syndicate
Gold for Senior Citizen Rs. 10,000 Corporation Bank
Visa Global for Salaried Rs. 10,000 Vijaya Bank

One of the reasons issuers ask for income is to evaluate the overall creditworthiness. This helps in preventing defaults later on. However, if a pensioner isn’t using the card for the first time or has used a card earlier, with a good track record, then the chances of having the card approved is higher.

  • Credit Card Against the Fixed Deposit

One of the safest investments that anyone can make is the Fixed Deposit (FD). It works for adverse risk investors, and if a pensioner has an on-going FD account, they can get a Credit Card against the FD and open a new FD account and apply for the card as well. The limit on the Credit Card is generally 80% to 85% of the FD amount within the bank.

If for example, an individual keeps Rs. 1,00,000 in the FD and takes a card against the same, then the limit is generally around Rs. 80,000-85,000.

Here are the cards offered by banks against different FDs:

Signature Rs. 10,000 Andhra Bank
Payless Rs. 15,000 Development Credit Bank
Aspire Rs. 16,000 Central Bank
Coral Rs. 20,000 ICICI Bank
Instant Platinum Rs. 20,000 ICICI Bank
Insta Easy Rs. 20,000 Axis Bank
Assure Rs. 25,000 Bank of Baroda
  Usecure Rs. 25,000 Union Bank of India
Unnati Rs. 25,000 State Bank of India
Solaris Rs. 25,000 Kotak Mahindra Bank
Aqua Gold Rs. 25,000 Kotak Mahindra Bank
Advantage Plus Rs. 25,000 State Bank of India
Galaxia Rs. 1,00,000 Kotak Mahindra Ban

There are a few advantages that come with taking a card against the FD, including:

  • Low-interest rate
  • No credit history check
  • Minimal documentation
  • No income criteria which means there’s no need to provide any related documents to income such as IT Returns or salary slip.
  • Supplementary Credit Cards:

This is also called an add-on card and can be taken if any other family member owns a Credit Card. By applying for the add-on card, a senior citizen can use a joint account in the same way. The criterion to apply is a good credit score for the primary card owner, and they shouldn’t have taken a prior add-on card.

It is important that the add-on member also makes the repayment on time fully against the secondary card. If this doesn’t happen, the credit score for both parties becomes affected. It’s a Credit Card for Pensioners but under someone else’s name.

While pensioners receive money through their pension, it may not be enough to meet certain financial objectives. This can be achieved through your savings,but then again, this money should be saved for important purposes such as their children’s marriages, medical expenses, etc.

There are also a few tips that pensioners can follow to maintain a good credit score:

  1. Don’t miss out on any payment. Ensure you pay before the due date
  2. Pay all bills fully without any carry-forward
  3. Never spend more than the credit limit provided
  4. Do not use a Credit Card for any cash withdrawals
  5. Don’t apply to many banks for credit
  6. Ask your lender whether repayment and other financial data is updated at the credit rating agencies. This is important when you apply for a different type of credit in the future with a similar or different bank.

SBI Credit Card types and other banks do not offer special cards for pensioners, but with some smart planning, you’ll be able to get a good return. Ensure you spend carefully as a pensioner,and you can enjoy your retired life in peace!