Note: This article is outdated, as many of the below listed banks have merged with other banks or have discontinued or changed their eligibility criteria. But you may visit this article on credit cards for poor income earners with minimum income of Rs. 10,000 per month.

Everyone has a dream be it salaried or self employed. But being independent, does not mean that they do not have the same needs and dreams. The difficulty is even greater in the case of the self-employed whom banks tend to treat with great suspicion, unless they have guarantees, guarantees or a very solid financial history.

There are a large number of self employed individuals and they usually face difficulty in getting approval for a credit card and have lot of questions on getting a credit card.

So here are the frequently asked questions by self employed requiring credit card?

Can self employed individuals get credit card?

Yes, there are many banks in India offering credit card for self employed individuals. And it is a myth that access to credit (card or loan) is impossible as they have to struggle a lot to generate income and hence ability to repay is difficult for many. Because of this financial institutions apply strict criteria when it comes to granting credit card approval to a self employed.

Who is considered to be a self employed?

Typically self employed fall into following categories:

(1) Freelancers
(2) Business owners (especially small business owners) or Entrepreneurs
(3) Proprietors
(4) Part-timers

Which is the most easiest option for a self employed to get credit card?

The most easiest option to get credit card for self employed with low income is:

(1) Credit cards against fixed deposit
(2) Add-on credit card

Can self employed individuals with low income get credit cards?

Yes, there are many banks in India offering credit cards for self employed with low income. The table below shows list of cards, minimum monthly and annual income required:

Sr. 13 to 25 above are the credit cards offered against fixed deposit. Applicant needs to open a FD account, deposit minimum amount and apply for cards against FD. The approval is fastest and interest rate is very low.

Requirements and documents for a self employed

When a self employed person applies for a credit card, the financial institution has a number of requirements. The requirements depend on the type of business and most importantly the income.

However access to a credit card, if you work independently or have a business is possible but with varying eligibility criteria especially the income requirement.

The requirements demanded by card issuers vary for a self-employed individual. And here are the typical requirements:

• For most of the lenders, income for self employed should be as per Income Tax Returns minus Tax liabilities & statutory deductions.
• Proof of Income –
  • Audited financials for the last two years
  • Latest 6 months Bank statement.
• Age should be minimum 21 years and maximum 65 years
• One recent passport size color photograph
• Copy of PAN Card
• KYC Documents – Photo-Identity Proof & Address Proof
• Office address proof
• Proof of residence or office ownership
• Proof of continuity of business

However above document list or eligibility criteria will vary for each card issuing bank.

Lenders are aware that the only objective of the self-employed or entrepreneurs is to work or start a new business. For these professionals, time is money. For this reason, banks typically approve credit card quickly and without much hassle for the applicant.

Author Bio:

I am Nikesh Mehta, owner and writer of this site.

I’m an analytics and digital marketing professional and also love writing on finance and technology industry during my spare time. I can be reached at nikeshmehta@allonmoney.com or LinkedIn profile.