Student Credit Card Scheme
A student credit card: what is it?
The purpose of a student credit card scheme in India is to assist students in handling their educational expenses. These cards offer all of the standard benefits of credit cards, including interest-free periods, discounts, and reward points. These cards, which are available in secured and entry-level versions, are a great way to teach students about managing their finances and the foundations of building credit.
Student credit cards’ advantages
Credit Limits: When compared to other bank credit cards, student credit cards have a lower credit limit. A student credit card typically has a Rs. 15,000 credit limit. This is done to make sure that the cardholders’ unfettered spending doesn’t result in debt.
Validity of the Card: Unlike conventional credit cards, which have a three-year validity duration, student credit cards often have a five-year validity period from the date of issuance.
Make a duplicate card for free: A duplicate card would be provided for free or at a very little fee in the event that the student credit card holder misplaces or loses their card.
Fee reduction: It is easier for students to keep up with student credit cards because they sometimes have very low annual fees and no joining fees.
Low Documentation: Unlike most other credit cards, student credit cards do not require extensive verification. When applying for a card, the minimal minimum of paperwork is needed.
Exclusive offers and benefits: Rewards and loyalty programs that pay cashback or cash points once a specific amount is spent with the card are included with the student cards. Additionally, the cards offer exclusive deals and discounts on goods and services across the globe. Anytime during the card’s validity, the student credit card holder has the option to upgrade to a conventional credit card if they so choose.
The MNSBBY Student Credit Card Program in Bihar
On October 2, 2016, the Bihar Students Credit Card Yojana was introduced with the goal of providing financial assistance to Bihar students who have completed grade 12 for their future education. With the help of this project, the government hopes to close the gap in Bihar’s Gross Enrollment Ratio (GER). Bihar students can apply online for this credit card.
Under this scheme, the state government would provide disadvantaged 12th grade students in Bihar who wish to continue their education with loans up to Rs. 4 lakh. Programs leading to a B.Sc., B.A., M.B.B.S., or B.Tech. degree can be funded with the loan amount.
The Bihar Student Credit Card Scheme’s advantages
The advantages of the Bihar Student Credit Card Scheme are listed below:
- Bihar students can use the loan to study both general and polytechnic studies.
- The loan offered to transgender, divyang, and female students would have a 1% low interest rate.
- The money can be used to purchase laptops, books, and pay fees.
- After completing the program, the students must pay back the loan balance once they get employment.
Qualifications to Apply for MNSSBY
The requirements to apply for MNSSBY are listed below:
- A student must be a Bihar resident.
- He or she ought to finish grade 12.
- He or she ought to be younger than twenty-five.
- Students should apply to accredited institutions for their postsecondary education.
- The higher education course should be finished by him or her.
To read more about the MNSSBY program click here… MNSSBY Scheme
West Bengal Student Credit Card
The Government of West Bengal’s Higher studies Department launched the West Bengal Student Credit Card (WBSCC), an initiative that will enable students to continue their studies without any financial limitations. WBSCC is available to students who are pursuing secondary or post-graduate degrees.
A student may apply for a loan from the State Cooperative Bank and its affiliated banks under this plan up to Rs. 10 lakh at an annual interest rate of 4% p.a.
The maximum age to be eligible for a loan is 40 at the time of application, and the loan payback period is 15 years.
Simply click the following link to register: https://wbscc.wb.gov.in/. Once there, click ‘Student Registration’ and fill out the necessary information, creating a login ID and password. Regardless of whether you choose to continue your study in India or elsewhere, you can select this option.
You can apply for a loan by clicking on ‘Student Login’ with your login credentials once you have created them. Send in the application and any necessary supporting documentation. If all of the documentation you have submitted are accurate, your loan application will be approved.
To Know more about WBSCC scheme click here.. WBSCC Scheme
Guruji Student Credit Card (GSCC) Scheme
The Government of Jharkhand’s Department of Higher and Technical Education introduced the Guruji Student Credit Card (GSCC) Scheme. The program’s goal is to give students financial assistance so they can pursue higher education without facing financial obstacles. With extra perks for female students, this program allows qualified students to take out education loans up to ₹15 lakhs at a subsidized 4% simple interest rate.
To Know more about GSCC scheme click here.. GSCC Scheme
How to Apply for a Student Credit Card?
The most recent participants in the credit card market are student credit cards, which assist independent college students in handling their spending. Nevertheless, not every student qualifies for a student credit card.
For the purpose of issuing a student credit card, different banks and financial institutions have developed distinct eligibility requirements. Applying for a credit card would only be possible for individuals who fit the requirements.
However, other institutions, like the State Bank of India, only offer credit cards to those clients who have college loans.
Regardless of the procedure, if you are a student who is older than eighteen and has to apply for a student credit card, you must first find out which bank offers the finest student credit cards and how to apply for them.
After fulfilling the bank’s eligibility requirements, you can inquire about the application process with the bank. Not every bank operates in the same way. Therefore, speaking with a bank representative about the bank-specific application process for a student credit card is essential.
While some banks let you apply online, others could need you to go to the bank branch and apply in person.
Student Credit Card Eligibility & Document Requirements
All credit card schemes have varying requirements for student credit card eligibility, but the following are the basic requirements.
Eligibility Requirement
- Age: Applicants must be 18 years old.
- Education: In order to be eligible for student loan applicants must be a college student.
Required Documents
- Applicant’s Birth Proof
- Applicant’s Identity card issued by the recognized college or university
- Adhaar Card
- Domicile Certificate
- Applicant’s passport size photograph
- PAN card
How to get student credit cards in India?
Some may be unsure about how to apply for a student credit card because banks offer them without requiring applicants to submit any income tax returns or work documentation.
The methods by which a student can obtain a credit card in their name are covered below:
Against fixed deposit:
Based on any fixed deposits they may have in their name, students can apply for student credit cards. However, banks typically have a minimum amount that must be deposited before a credit card may be applied for.
Using an add-on card:
Asking any family member with a credit card to apply for an add-on in the student’s name is an additional method of obtaining a student credit card. To do so, though, the person making the add-on card request needs to have a solid credit history.
A Robust Savings Account:
If someone plans to apply for a student credit card and has a solid savings history, they can also get one. However, only a small number of institutions offer this service to their clients.
Student Add-on Credit Cards
Add-on cards are additional credit cards that are issued in conjunction with a primary credit card. This is the easiest way to get a credit card because it doesn’t need to be reviewed as thoroughly as a standard credit card.
If you want to get a student credit card to improve your credit score, an add-on card won’t help. Only members of the principal user’s immediate family can purchase add-on cards. The credit limit of the primary cardholder is shared by the add-on cardholder.
The following are the advantages of a student’s add-on credit card: In the event that you are billed for an improper transaction, you may be confident that your money will be swiftly reimbursed. Almost all of the perks offered by most credit card companies are available to add-on customers. Among the amenities are movie vouchers, discounts, and dining privileges. You will be given access to your parent’s credit limit.
Conclusion
For additional information and complete specifics about student credit card schemes, students who are interested in applying for a student credit card should get in touch with THE CAREER COUNSELLOR Team.