17,000 new credit cards issued by ICICI linked to wrong users

Among public sector banks, SBI issues it and among the private players, HDFC Bank, ICICI Bank and Axis Bank offer it. (Representative Image)

We all know that if properly used, a credit card is very useful. Large lenders like SBI, HDFC Bank, Axis Bank and others issue student credit cards that come with lots of benefits and do not require income proofs. A student credit card is offered to students at the college level and university level. Any student beyond the age of 18 years is eligible to apply for these credit cards. They have lower interest rates and have a validity period of five years.

Various banks and financial institutions have come up with different set of eligibility criteria to issue a student credit card. While some banks such as SBI provide credit cards only to its education loan customers, others such as ICICI Bank offer student credit card only after getting security deposits.

Money9 gives you nine important points of student credit card.

Nine things

— To get a student credit card, you need to be a student of a college and above 18 years of age. Any student above 18 can apply for a student credit card.

— No joining fee is charged on these student credit cards. Joining fees are waived and very low annual fees are charged by the banks.

— The credit limit of a student credit card is lower as compared to regular credit cards. Generally, the credit limit of a student credit card is between Rs 15,000 and Rs 20,000.

— The validity of a student credit card is generally set for a period of 5 years. Regular credit cards, however, come with a three-year validity period.

— These credit cards come with comparatively lower interest rates. For instance, the SBI Student Plus Advantage credit card charges Rs 2.25% interest per month. ICICI and HDFC charge 2.5%-3.5% interest rate.

— The documentation for these cards is simple and easy. Only PAN card, address proof, birth certificate, and identity card of the college or university are needed.

— Some banks also protect the student account holder against card fraud. For instance, HDFC Bank’s credit card offers Rs 5 lakh insurance cover in case of frauds.

— Duplicate credit cards can be obtained free of cost. In case a student misplaces the card, the bank provides a duplicate card free of cost or at a very nominal fee.

— These credit cards are generally issued against a fixed deposit or as an add-on card of an existing credit card. Besides, banks also offer multiple reward points and special deals against these cards.

Issuance bank

Very few banks offer student credit cards. Among public sector banks, SBI issues it and among the private players, HDFC Bank, ICICI Bank and Axis Bank offer it.

All banks have only one variant of student credit card. These are SBI Student Plus Advantage credit card, ICICI Student Travel Card, Axis Student credit card and HDFC Multicurrency Platinum Forexplus card.