Credit cards are becoming popular and are allowing users to purchase things on credit while also providing them with various benefits and rewards. However, not everyone is eligible for a regular credit card, especially those with no or low credit scores. This is where secured credit card in India come into the picture.

These cards require a safety deposit that acts as collateral and enables to mitigate the risk for the lender. With responsible use, secured credit cards can help individuals built their credit score and eventually become eligible for regular credit cards.

Secured Credit Card in India

What is a Secured Credit Card?

A secured credit card is a one such card that requires the user to make a safety deposit, which serves as collateral for the credit limit. This makes it easier for people with no or bad credit history to get approved for a credit card. The credit limit on a secured card is basically a percentage of the security deposit, which can be anywhere from Rs. 10,000 to Rs. 1,00,000 or more.

Benefits of Secured Credit Card in India

Welcome Benefits:

As you apply for a secured credit card, you can enjoy various welcome benefits such as cashback, discounts, and reward points. Some credit card companies also offer free movie tickets or gift vouchers as welcome benefits.

Rewards and Cashback Benefits:

Secured credit cardholders can earn reward points or cashback on their purchases. These rewards can be availed for various items such as merchandise, air miles, or cashback on the credit card bill.

Milestone Benefits:

Many credit card companies offer milestone benefits to their customers. For example, if your annual spending on the card exceeds a certain amount, you may get a waiver on the annual fee or bonus reward points.

Travel Benefits:

Secured credit cards also offer various travel benefits such as discounts on flight tickets, hotel bookings, and car rentals. Some credit cards also offer lounge access at airports.

Entertainment Benefits:

Credit card companies also offer entertainment benefits such as discounts on movie tickets, concerts, and events. Some credit cards also offer free access to certain events or early bird booking options.

Other Benefits:

Apart from the above benefits, secured credit cards also offer other features such as fuel surcharge waiver, insurance coverage, and EMIs on big-ticket purchases.

Working Process of Secured Credit Card in India

Here’s how a secured credit card works in India:

1. Apply for a Secured Credit Card:

Choose a credit card company and apply for a secured credit card. You will be required to provide your personal and financial details as well as make a security deposit.

2. Get Approved:

After the approval of card application, you’ll get a secured credit card along with the credit limit, which represents a percentage of your security deposit.

3. Use the Secured Credit Card:

Use your secured card to make purchases, pay bills, and withdraw cash from ATMs. Make sure to regularly pay your credit card bill to avoid late payment fees and interest charges.

4. Build Your Credit Score:

By using your card responsibly and making timely payments, you can gradually build your credit score. This will increase your chances of getting approved for a regular credit card in the future.

Also Read: Top 5 Benefits of IRCTC SBI Card Premier


Secured credit cards are a great financial tool for people with no or bad credit history. They offer various benefits and rewards while also helping users build their credit score. If you’re looking to get a secured credit card in India, make sure to choose a credit card company that offers the best benefits and has a good reputation in the market.

Leave a comment