Applying for a credit card in India can be an essential step in building your financial portfolio. Credit cards offer a variety of benefits, such as rewards, cashback, and the convenience of cashless transactions. However, banks and financial institutions have certain criteria that applicants must meet to be eligible for a credit card. One of the most important criteria is the income of the applicant. In this blog, we clearly discuss on “What is the minimum salary required for Credit Card in India?”.
Understanding Credit Card Eligibility
Credit card eligibility criteria can vary considerably from one bank to another. However, the minimum income requirement is a common factor. This requirement helps banks assess the applicant’s ability to repay the credit card loan. Banks generally set a minimum salary limit to ensure that the applicant has a stable source of income.
Minimum Salary Requirements by Major Banks
1. State Bank of India (SBI)
One of the largest public sector banks in India, SBI offers a wide range of credit cards. The minimum salary requirement for an SBI credit card generally starts from around ₹20,000 per month. However, for premium cards, the income requirement may be higher.
2. HDFC Bank
HDFC Bank is another leading player in the Indian credit card market. The minimum income requirement for HDFC Bank credit card is usually around ₹15,000 per month for salaried individuals. For self-employed individuals, the criteria may be different, focusing more on annual income.
3. ICICI Bank
ICICI Bank offers various credit cards keeping in mind different sections of the society. The minimum salary required for an ICICI Bank credit card is generally around ₹15,000 per month. Like other banks, ICICI’s premium cards may require a higher income.
4. Axis Bank
Axis Bank is known for its diverse credit card offerings, with the minimum monthly income requirement typically ranging from ₹15,000 to ₹20,000 for its basic credit cards. Higher-tier cards may have stricter income criteria.
5. Citibank
Citibank has set the minimum salary requirement for a credit card at around ₹25,000 per month. Citibank’s premium credit cards may require a higher income level due to the special benefits they offer.
Factors Affecting Minimum Salary Required For Credit Card
1. Type of Credit Card
Credit cards fall into different categories, such as basic, lifestyle, travel and premium cards. Basic cards generally have lower income requirements, while premium cards, which offer more comprehensive benefits, have higher income limits.
2. Applicant’s Employment Status
Salaried individuals and self-employed individuals may face different income requirements. Salaried individuals are often required to provide pay slips and bank statements as proof of income, while self-employed individuals may be required to submit income tax returns and financial statements.
3. Credit History
A good credit history can sometimes compensate for a low income. If an applicant has a strong credit score and a history of timely repayment, the bank may be more flexible with the income requirement.
4. Existing Relationship with the Bank
Applicants who already have an existing relationship with the bank, such as a savings account or fixed deposit, may find it easier to get a credit card, even if their income is slightly below the minimum requirement.
Read Also this Blog:- Why should you consider Secured Credit Card?
Documentation Required for Credit Card Application
To apply for a credit card, applicants need to submit several documents to prove their eligibility. These documents include:
- Proof of Identity: Aadhaar Card, PAN Card, Passport or Voter ID.
- Proof of Address: Electricity Bill, Rental Agreement or Passport.
- Proof of Income: Salary Slip, Bank Statement or Income Tax Return.
Tips for Meeting the Minimum Salary Requirement
1. Apply for a Secured Credit Card
If your income is below the minimum requirement, you can consider applying for a secured credit card. These cards are issued against a fixed deposit, which reduces the bank’s risk.
2. Improve Your Credit Score
Maintaining a good credit score by paying your existing loans and bills on time can increase your chances of getting a credit card, even if your income is low.
3. Opt for a Co-branded Card
Some banks offer co-branded credit cards in partnership with retail stores or online platforms. The income requirement for these cards may be lower.
4. Get a Supplementary Card
If a family member already has a credit card, you can consider applying for a supplementary or add-on card. These cards are linked to the primary cardholder’s account and do not have strict income requirements.
Understanding Credit Limits
Apart from the income requirement, it is also important to understand how a bank determines the credit limit. The credit limit is the maximum amount you can spend using a credit card. It is usually a multiple of your monthly income. For example, if your monthly income is ₹20,000, the bank may determine your credit limit to be ₹60,000 to ₹80,000.
Understand Also Credit Limits:- How to Calculate My Credit Card Limit in 2024?
Importance of Meeting the Income Criteria
Meeting the minimum salary requirement is important as it ensures that you can manage and repay credit card bills. Failure to meet repayment obligations may lead to high interest charges and negatively impact your credit score.
Conclusion
In India, the minimum salary requirement for a credit card varies depending on the bank and the type of card. On average, you can expect a minimum salary requirement of ₹15,000 to ₹25,000 per month for most entry-level credit cards. However, premium cards with more benefits and features will have higher income limits.
Before applying for a credit card, it is essential to compare the various options available and understand the specific requirements of each bank. Make sure you have all the necessary documents ready and maintain a good credit history to improve your chances of approval. By doing so, you can enjoy the convenience and benefits of a credit card without facing financial stress.