BANGALORE: With the expansion of banks and acceptance of credit cards for major transactions and other such purposes, it is gaining much popularity among youngsters. There are specified credit cards made available by banks specially modified to serve the customer’s purpose comfortably.

For example, credit cards are specially made for travelers, women, senior citizens, and young students as well.

The credit card system for young students is popular in western countries and the same is yet to be achieved in India. There is no prior formality to be fulfilled other than submitting proof of residence and proof of enrollment in an educational institute.

As westernization and globalization is catching up fast, specifically designed credit cards for students cannot be far behind. There are various processes through which Indian banks cater to the needs of the students while exercising some rules and limitations; as reported by Rediff.

Credit cards against fixed deposits

Students are given credit cards once they open a fixed deposit with the bank of their desire. The banks in return, use the deposit money to issue credit card to the student.

The credit card limit availed by the students is fixed to the amount deposited in the bank. These cards may be offered with a credit limit of up to 85 percent of the deposit amount and can extend very low interest rates of 1.99 percent per month.

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