2022: 16 Credit Cards for Low Income Earners, INR 10000 Minimum Income Required

Credit Card for Poor Income Earners

Credit card for low income earners, is it really possible?

This is a very common question asked by individuals earning low salary/income and requiring credit card. After all everyone needs a card to avail benefits which are not possible in case of other modes of payment in India (e.g. cash).

But when someone with low salary (or high salary) applies for a card; annual income is the most important eligibility criteria considered by the card issuing bank.

For e.g. a person with a monthly salary of Rs. 75,000 has higher chance of credit card approval compared to a person with an income of Rs. 25,000 per month. Although there are many other eligibility factors such as type of employment (full-time or part-time, place of living and others), credit history, etc. but your income plays the most significant role.

And income (in case of self employed) and salary (in case of working professional) is the best factors for judging any applicants’ repayment capacity. Basically it is assumed that – higher the salary, higher is your capability to pay dues every month and lower the income, lower would be the repayment capacity.

Can a poor income earner get a credit card in India. How, and what is the minimum salary required?

The answer is YES.

There are many credit cards for low income earners in India.

The next obvious question is – how can a person with low income in India get a credit card and which lenders provide card to such individuals?

Below is the list of 16 banks offering credit card to low income earners (Rs. 10,000 minimum per month) along with the MINIMUM ANNUAL salary requirement.

Sr. No.Bank NameCredit Card NameMinimum Annual Income Required (in INR)Equivalent Monthly Income (in INR)
1Corporation BankGold for Senior Citizen1,20,00010,000
2HDFC BankFreedom Card1,44,00012,000
3HDFC BankBharat CashBack Card for Salaried1,44,00012,000
4Corporation BankGold for Salaried Professional1,80,00015,000
5Corporation BankGold for Professional1,80,00015,000
6Andhra BankRuPay Platinum1,80,00015,000
7Corporation BankGold for Self Employed2,00,00016,667
8HDFC BankBharat CashBack Card for Self Employed2,00,00016,667
9State Bank of IndiaSimplySAVE2,16,00018,000
10State Bank of IndiaSimplyCLICK2,16,00018,000
11Corporation BankRuPay Platinum2,50,00020,833
12HDFC BankTimes Titanium Credit Card3,00,00025,000
13HDFC BankMoneyBack Credit Card3,00,00025,000
14Yes BankProsperity Reward Plus3,00,00025,000
15HSBC BankSmart Value3,00,00025,000
16Dhanlaxmi BankGold Card3,00,00025,000

Income proof required by the banks

Card issuer will ask for following documents related to your income:

  1. Salary slips/certificate for last 3 months for working professional
  2. Income tax return document for self employed
  3. Latest bank statement indicating salary credited for minimum 3 months for working professional

Note: Please check with each of the above mentioned banks on other requirements and documents for getting a card other than annual income. Every bank has a different set of requirements.

Cards against Fixed Deposit – Another Option for Poor Income Earners to Get Credit Card

Other way for a low income earner to get credit card is against FD. Cards against fixed deposit is one of the easiest way to get a card when earning is poor. This is because, income is not the eligibility criteria for cards against FD. Instead issuing bank requires fixed deposit account with minimum deposit. Check out 17 credit cards against fixed deposit offered by various banks in India.

Basically applicant needs to put fixed amount of money as a security with the bank and get card against this security. The credit limit offered is 80%-85% of the FD amount. The table below shows list of banks offering cards against FD:

Sr. NoCredit Card NameMinimum Fixed Deposit Amount RequiredCard Issuer
1SignatureRs. 10,000Andhra Bank
2PaylessRs. 15,000Development Credit Bank
3AspireRs. 16,000Central Bank
4CoralRs. 20,000ICICI Bank
5Instant PlatinumRs. 20,000ICICI Bank
6Insta EasyRs. 20,000Axis Bank
7AssureRs. 25,000Bank of Baroda
8UsecureRs. 25,000Union Bank of India
9UnnatiRs. 25,000State Bank of India
10SolarisRs. 25,000Kotak Mahindra Bank
11Aqua GoldRs. 25,000Kotak Mahindra Bank
12Advantage PlusRs. 25,000State Bank of India
13GalaxiaRs. 1,00,000Kotak Mahindra Bank

In fact, this is the most easy option for poor income earners to get a credit card due to the following benefits:

  1. No credit history check
  2. Low interest rate
  3. Very few documents required as the bank already has documents when FD was opened.
  4. No income limit. So no need to provide income related documents such as salary slip, IT returns, etc.

Check out: Personal loan for poor income earners

Limitations of Low Income Credit Cards

Credit limit is low for individuals earning less. And more over individual’s spending is restricted to less than 3 times of the monthly income. Also if employed in a reputable company (preferably listed company) then it’s an advantage for the applicant. But for a beginner these banks offer a great opportunity to start building a credit history.

How low income earners should save money?

Low annual income earners can save good amount of money by selecting credit cards with zero annual and joining fee. Another money saving tip is to buy card with low interest rate.

Once you get your first credit card, maintain long relationship with the financial institution by making all the monthly repayment before the due date and fully, not spending beyond the credit limit, avoiding paying minimum balance, etc.

This will increase your chances of getting a credit card or loan (personal, car, two-wheeler and others) from some other lender in the future or existing card issuer will increase the credit limit and offer low interest rate. This is because nowadays companies also check your repayment history along with other factors such as age, profession, type of job/business, and others.

Also read, how low income professionals can earn extra money in India in a authentic way.

 

Nikesh-Mehta-AllOnMoney

Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at nikeshmehta@allonmoney.com.

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