October 26, 2025 · 10 mins read
Santosh Kumar
Learning to manage their personal finances is a valuable skill that should be learned early in life by every student. Credit cards, one of the many tools of financial responsibility, can be an indispensable tool in demonstrating how young adults can monitor their spending, build credit history and understand the steps in becoming financially independent. But the question that arises from students in India is, "Is there a credit card for students without a Fixed Deposit (FD)?". The idea of a student credit card is very quickly becoming well known in India, but still, most banks will have eligibility criteria that would be nearly impossible to fulfil by students. Most institutions actually expect that the student have proof of income or a fixed deposit for security. However, there are a few options and alternate avenues for students to obtain a credit card without an FD.
Student credit cards are designed to assist young people in building their financial base in a safe manner. Typical of these cards is that they have lower credit limits compared to a regular credit card and have an easier approval pathway. The plan is to introduce students to the importance of credit in a safer environment, so they learn to manage repayments and understand finances. A student credit card allows the cardholder to make cashless transactions, process their online payments, and deal with emergencies that may arise, without carrying cash. Repayment is the same as any other card -- the amount spent must be paid back in the billing cycle with interest if payment is not made on time.
While there are many credit cards in India that require applicants to have some form of income or maintain an FD, other financial institutions and fintech companies have come up with flexible mechanisms to provide access to credit for students. Understanding these routes will help students make sound financial decisions in the future.
To begin to see the issues one confronts when attempting to obtain a credit card without a Fixed Deposit would be to understand why banks require one in the first place. In India, traditional credit cards are unsecured, meaning that the bank is extending credit to the user with no collateral to secure that credit. Students, generally without a source of income or credit history, automatically present a greater risk for default.
To lower this risk, many banks simply issue credit cards secured by a Fixed Deposit (FD), which acts as collateral and gives the bank reason to believe that they can recover their money in the event that a cardholder is not able to pay their bills. Not all students have sufficient funds available to open an FD, which is ultimately what limits the student population's access to credit cards utilizing FD requirements.
The good news for students is that as the technology of digital banking and alternative financing emerge, some companies are beginning to accept full time student status in lieu of a Fixed Deposit.
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It is possible to obtain a credit card without a fixed deposit but you still have to meet certain criteria. The criteria will differ from one financial institution to the next but will generally include the following:
1: You have to be 18 years old
2: You have to be enrolled in a higher education program at an approved university/college.
3: You need to provide an identity and an address proof that is issued by a government.
4: You need to have a savings/current account with an approved bank.
5: In certain cases, you may need to show a regular inflow of funds, such as allowances, stipends or scholarships.
In some cases, a bank will allow parents or guardians who hold credit cards to offer add-on cards to students to use credit without having to maintain an FD in their name.
It’s important to note, FD-free student cards may have lower credit limits and greater restrictions to ensure responsible usage.
Also Read: Foreign Transaction Fees on Indian Credit Cards
For students uninterested in obtaining a fixed deposit, you can obtain a card via different means. India's overall financial fabric has gradually diversified to consider payments via digital companies as well as small finance banks, and co-branded partnerships catering towards younger generations. A common approach includes:
Add on or supplementary credit cards: Generally attached to a parent or guardian's account, the student is able to use it under the account holder's usage limit.
Prepaid or virtual cards: These are not technically credit cards, but they function as a credit card to make payments and track expenses.
Fintech based credit products: Some digital finance companies provide credit limits to students based on their spending habits rather than income or statements.
Each of these options comes with specific terms and conditions, so students should assess beforehand to ensure they qualify, and that they understand their possible interest owed, what the billing cycle of accounts is and what their repayment obligations are.
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Having a credit card means responsibility. If students are not careful with credit, they can put themselves into a difficult financial position. With a credit card, a few possible hazards are:
1: Over-spending: Because credit is so accessible, it can create temptation to spend beyond the ability to pay it back.
2: Interest & penalty fees: If payments are late or missed all together, interest fees can end up costing much more than the initial purchase which can affect financial stability.
3: Credit score: If bills are not paid on time, it can impact the credit score which can get in the way of future financial opportunities.
4: Having the potential for fraud: If cardholder is careless with online implications or sharing their card details, there could be unauthorized charges.
Thus, it is important for students to develop a good discipline of spending, tracking their statements, and always paying at least the minimum payment before the due date.
Also Read: Should You Use a Credit Card for High-Value Purchases?
While documentation requirements differ per bank and card issuer, the typically requested documentation will include:
1: Proof of identity such as PAN, Aadhaar, or Passport
2: Proof of residency
3: Proof of age that shows that the applicant is over 18 years of age
4: Proof of enrolment consisting of a college or university ID
5: A bank account and a passport-sized photograph
These documents would prove the applicant's validity and would allow the issuing institution to verify that they meet the eligibility requirement.
Also Read: When to Convert Credit Card Payments into EMI?
The steps to apply for a student credit card without FD has become easier because of these digital platforms as applicants can now apply online on the official website of the bank or financial institution.
To submit the application form, the applicant must then upload the documents necessary for verification. The issuing authority will review the details and will verify the credentials the applicant has given, and inform the applicant of the approval status via email or SMS.
Once approved, they will send the card to the address given as registered, and can then activate the card online or through customer care service. The entire process is secure, and typically takes a few day to complete.
Credit limits on student cards that do not have a fixed deposit (FD) requirement are generally quite low to be used effectively. The credit limit takes into account several metrics: inflow in the linked bank account (if applicable), repayment capacity, or the financial profile of the parent (for add-on cards).
Repayment is made in monthly billing cycles, and students are encouraged to pay the bill fully by the due date to avoid interest and stay in good standing.
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Creating a credit history is one of the most beneficial consequences of having a student credit card. Responsible use, even at a limited credit limit, will help develop a solid financial history. A student card is a card for students. Students should keep in mind that while they provide flexibility and convenience, they must be used wisely and with financial responsibility. With a credit card, if you manage usage, a pay off bills on time, and track purchases, you will not only manage your daily finances, but you will also establish a good credit score for future use.
Credit is a powerful tool. With financial discipline, credit may provide you with an opportunity to become wealthy. As a student, beginning early and in an educated manner will offer a financial pathway to a secure, productive future, and to encouraged security to enter into your future endeavors.
Also Read: what is fd in credit card
Students can obtain a credit card without a fixed deposit from a limited selection of banks or fintech companies that issue credit cards based on other eligibility factors, such as a savings account or being an authorised add-on cardholder.
As per the Reserve Bank of India (RBI) and bank rules, the applicant must be 18 years of age or older in order to apply for a student credit card.
Not necessarily. Some banks and fintech companies determine eligibility on account activity or the basis of being associated through a parent/guardian, as opposed to direct proof of income.
The credit limit would be expected to be modest based on account funds, activity and repayment behavior.
Yes, responsible and timely repayment of a student credit card helps to establish a positive credit history, which will be helpful when there is a need for credit in the future.
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