
In today’s time, almost every person has a credit card. For those children who want to manage their finances, this student credit card is no less than a boon. If it is used properly, then this card can also be very useful in their studies. So let’s know its benefits, what it is, its limitations, and how to get it.
What is this student credit card?

A student credit card is a card specially designed for students. Its main purpose is to provide them financial assistance so that there is no interruption in their studies. It is like a normal credit card, but the repayment terms, interest rates and eligibility are a little relaxed, because the target audience are students. Some states like Bihar, West Bengal, and Jharkhand have launched their own state-level student credit card schemes through which students can get loans up to ₹4 lakh without any guarantee. Indian banks also offer some student-friendly credit cards with benefits like low interest rates, zero annual fees, and additional rewards. Such cards are mainly available to students who are pursuing full-time courses at a college or university.
Benefits of Student Credit Card

Everyone faces financial issues at some point of time and if you do not have immediate funds, then this student credit card can provide you financial help. Every bank today gives rewards and many offers to its credit card users. The more you use these credit cards, the more you will get gifts and cash backs, which is very safe for a student. Building credit score – When you have to pay dues and you can build your credit score by using this student credit card, which is very useful because in future it can help you in getting a personal loan, home loan or even car loan.
Eligibility for Student Credit Card

Each bank has its own eligibility criteria. But there are some common conditions for student credit cards. So let’s know about these conditions: Age – If you want a credit card, then you must be between 18 and 25 years of age. You should have papers from some educational institution. Some banks require the condition that you should have a job, whether it is a part-time job or a permanent job. But there is nothing to worry about because the card works with your guardian support. You do not need any credit history.
Student credit card limit and how to use it.

The limit of a student credit card ranges from ₹10,000 to ₹1,00,000. It also depends on the policy of the bank. This limit is sufficient for the basic needs of a student. When you make a transaction with this card, that amount has to be deposited before the due date. If you do this, your credit score builds and you become eligible for higher limits in the future. It is very important to be responsible for a student credit card because its misuse or late payment can spoil your credit history.
How to apply for a student credit card?

The application process is quite simple. Most of the online portals have been created for government schemes from where you can apply directly. Like for Bihar Student Credit Card, there is a portal www.ysdm.yuva.nic.in where you have to register and fill the application. After that you have to upload the documents and verification takes place after a brief interview. If everything goes right, the loan is approved and the card is issued.
For a bank card, you have to visit the nearest branch or official website. From there, fill the application form, you have to provide identity proof, address proof and education proof. If you have income proof or support of a co-applicant, the approval process becomes easy. Some private banks also offer online video KYC through which you can get the card from home.
Documents you need

When you apply for this card, you have to submit some important documents. And since verification is done on their basis, they are very important.
You should have your Aadhar card, PAN card or voter card. And along with that, your current passport size photo is also required for its registration. And after some verifications, your card is issued. All documents should be updated so that you do not face any problem later.
Repayment policy and interest rates

Repayment in student credit cards is quite flexible. Government schemes offer a repayment period of up to 15 years, with an interest-free moratorium for the first 4 years. This means you have to repay the loan only after getting a job, without any pressure. In some cases, if you repay on time, you also get an interest waiver or subsidy.
Private bank cards may have a slightly higher interest rate but depending on the student’s credit score and repayment history, you may get a better card in the future. The repayment process is through monthly EMIs which can be managed through automatic bank debit. If you pay EMIs on time, your credit score becomes strong, which makes it easier to get a car loan, home loan in the future.
Conclusion: Is a student credit card really right for you?
A student credit card can be a very good financial tool if you use it properly. It can help you manage small and common expenses. It gives you access to emergency funds and makes you financially literate. It also helps you build a credit history. If you are pursuing higher education, you will need money for your own needs. So this is a very useful tool for you. Then this student credit card can be a great and useful tool for you.