A few years ago, Indians were wary of using plastic payment. Credit cards weren’t used as much as they are today. Still, there are only three credit cards used for every one hundred Indians, while Americans have thirty-five for every hundred Americans. This is a big leap for Indians who once thought that “cash is king”. With a lot of compelling schemes by the Reserve Bank of India in lowering interest rates on card payments and EMIs via card payments, Indians now seem to be warming to the culture of plastic money. It is not only the urban Indian who stands to benefit from credit card use, but in tier 2 and tier 3 cities, citizens want to pay by credit card, and getting an instant credit card online is an attractive way to compel them to get one. The Indian government has schemes for financing farmers and students by way of letting low-income groups benefit from instant cash for their needs. For instance, the Kisan Credit Card Scheme was launched to give farmers leeway to spend on equipment and farming expenses, and wipe out corrupt non-formal lending systems like those of local money lenders whose interest rates were high, and repayment options stringent. To encourage the youth to have careers, student credit card schemes have been initiated, so that higher education is no longer a far-flung dream.
Digital Payment Leads
In 2019, a record-breaking 52 million users used credit cards for all sorts of payments, from paying utility bills to buying luxury watches. The Indian government is certain that credit card use is only bound to increase with each passing year, as tech-savvy Indians are on an endless spending spree come festival time or any time of the year. Between 2020 and 2025, credit card use is touted to grow at a cumulative aggregate growth rate of 25%, solely because credit cards offer Indians the means of “buy now and pay later” options. Besides this, applying for an instant credit card online has become such an easy process, anyone can do it from the convenience of their home. You don’t have to stand in lengthy queues, and options are available depending on your payment needs, with credit cards like those issued by ICICI Bank tying up with e-commerce portals such as Amazon. You can use credit cards like these if you frequently shop, and get special offers linked to the card. You can also use a credit card to pay for things like bills, course fees, etc. Financial institutions like Bajaj Finserv also issue digital payment tools that you can pay with, and shop at the Bajaj Finserv EMI Store, or any other partner retailers.
Depending on the bank or financial institution you choose for a credit card, application procedures may differ. Nonetheless, banks like Kotak Bank, ICICI Bank and SBI Bank let you apply for credit cards online. Bajaj Finserv, a premier financial institution also lets you apply for a digital credit card online, with approval that is instant. Although you will have to submit requisite documents in physical form, you won’t have too long to wait to use your new credit card. With digital application processes, you can check the online credit card status, knowing exactly when you can get it. Instant approval credit cards are given to customers who meet the following eligibility criteria:
- The minimum applicant age must be 18 or 21 years (or 25 for some financial institutions like Bajaj Finserv), and the maximum age 65 years (this may be different for various banks and financial institutions)
- A regular source of income must be exhibited
- The applicant must be an Indian resident
The following documents are required by institutions issuing credit cards:
- Proof of residence/address (Aadhaar Card, passport, driving license, etc.)
- Proof of identity (Pan Card, Aadhaar Card, passport, etc.)
- Proof of income (if 18 years, then proof of parents’ income), or a bank account in the credit card issuing bank (this criterion may differ from bank to bank). In the case of Bajaj Finserv, you have to be an existing Bajaj Finserv client.
Banks and financial institutions have made it easier to apply for credit cards online. You just need to go to the corresponding bank’s website and look for the link that says “credit card”. On most websites, this is a pretty standardized process and is purely menu-driven. You must submit an application online with information like your contact number and email address. You may get a single-use password on your phone to get into a portal to access the application form. Fill in the necessary information requested and submit it. You have to submit documents and photographs in physical form at the bank branch. The Bajaj Finserv RBL Bank SuperCard comes with multiple features and uses. It can be used as a credit card and an ATM card, offering you free withdrawals for a limited period. Pay for items on easy EMIs, and get loans for up to 90 days. Interest rates are nominal — just 1.16%, with no fees for processing.