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Paisabazaar Partners with SBM Bank India to launch Step Up Credit Card
Paisabazaar.com and SBM Bank India has announced the launch of Step Up Credit Card - a credit builder product designed for consumers with limited access to formal credit, due to ineligible credit score. The Step up Credit Card, built in partnership with SBM Bank India, is the first product to be launched under Paisabazaar's neo-lending strategy. A secured card provided against a fixed deposit (with SBM Bank India), Step Up Card helps consumers with damaged credit or those with no credit history to steadily build their Credit Score. While responsible use of Step Up Credit Card enables consumers to reach a strong Credit Score, it also allows them to enjoy benefits of a credit card, and earn strong returns on their fixed deposit.
Neeraj Sinha, Head, Retail & Consumer Banking, SBM Bank India, said, "At SBM Bank India, we believe smart banking - being a combination of technology and banking as a service, solves problems and empowers people. In India, the penetration of credit cards is low owing to lack of credit history and high delinquencies. We partnered with Paisabazaar to design a product that solved both these challenges - backed by a fixed deposit, it not only protects the quality of the assets but also helps build the credit score. We conducted a pilot program which witnessed great results and today we are launching the card for everyone."
Consumers can take the Step Up Credit Card on the Paisabazaar platform through a completely digital and paperless process, with instant issuance and activation. Paisabazaar and SBM Bank India are also creating a program that would enable revisions in credit limit, based on consumer usage and behaviour through the Step Up Credit Card. Paisabazaar aims to meet the credit needs of underserved segmentsLow penetration of formal credit in India is reflected in the country's household debt to GDP ratio, which is significantly lower than that of developed markets like the UK and US. This is primarily because large segments of India's population have remained outside the realm of formal credit. While segments like Salaried Prime have been traditionally served well by large Banks and NBFCs, other large segments like Salaried Sub-Prime, New to Credit and SMEs have had limited access to formal credit.
Naveen Kukreja, CEO & Co-founder, Paisabazaar.com, says, "For India's lending industry, the big challenge remains market under-penetration. Even today, credit is restricted to only select consumer segments. At Paisabazaar, we are uniquely placed to expand the reach of formal credit, together with our partners. The Step Up Card, created with SBM Bank India, is a testimony to our commitment to serve underserved customer segments."
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