FD-backed credit cards offer a vital entry point into the credit system for many Indians, especially those with no credit history or a low CIBIL score. As of 2026, several banks and fintech partnerships provide secured cards with minimum FD requirements as low as ₹2,000, enabling quick credit building. These cards typically offer a credit limit of 80-100% of the fixed deposit amount.
| Credit Card | Issuing Bank | Min FD (₹) | Credit Limit (% of FD) | Annual Fee (₹) | Key Benefits |
|---|---|---|---|---|---|
| IDFC FIRST EA₹N Credit Card | IDFC First Bank | ₹5,000 | Not specified | Not specified | 1% Cashback on UPI Spends; 0.5% Cashback on Other Spends; 10% Cashback up to ₹250 on first transaction; Earns FD interest up to 6.5% |
| FIRST WOW! Black | IDFC FIRST Bank | ₹5,000 | 100% | 0 | Zero Forex markup fee; UPI-enabled; Movie offers; Roadside assistance; Accident cover; Earns up to 6.3% p.a. Interest on FD |
| Kotak 811 #DreamDifferent Credit Card | Kotak Mahindra Bank | ₹10,000 | Not specified | 0 (Lifetime Free) | Lifetime free; Helps build credit score safely; Ideal for students, first-jobbers, thin-file users |
| SBI Card Unnati | SBI Card | Not specified | 80-90% | 0 (for first four years) | Linked to SBI’s FD rates (6–7% annually); Basic reward points; Fuel surcharge waiver; Easy upgrade options |
| Axis Bank Insta Easy Credit Card | Axis Bank | ₹15,000 | Not specified | Not specified | Instant approval; Helps build credit score; Secured credit line against FD; Rewards on spending |
| ICICI Bank Instant Platinum Credit Card | ICICI Bank | Not specified | Not specified | Not specified | Instant issuance; Reliability; Simple eligibility; Helps build or rebuild credit score |
| Bank of Baroda Prime Credit Card | Bank of Baroda | Not specified | Not specified | 0 (Lifetime Free) | Smart and safe choice for individuals with limited or no credit history; Entry-level credit option |
| SBM Bank India Step Up Credit Card | SBM Bank India (in partnership with Paisabazaar) | ₹2,000 | Up to 90% | Not specified | Designed for users new to credit; Helps build credit history; Low entry point |
| Utkarsh Small Finance Bank superCard | Utkarsh Small Finance Bank (with super.money) | ₹100 | Not specified | 0 (Lifetime Free) | Lifetime free; Virtual RuPay card; UPI payments; Up to 5% cashback on select merchants; Earns FD interest up to 6.5% |
| IndiGo IDFC FIRST Dual Credit Card | IDFC FIRST Bank | ₹5,000 | Not specified | ₹4,999 + GST (waived for FD-backed option) | Dual-network benefits (RuPay and Mastercard); Smart pick for regular IndiGo flyers |
These FD-backed cards offer benefits like cashback, reward points, and zero annual fees, making them attractive for beginners. The minimum FD requirement varies significantly, with some options starting as low as ₹100, making credit accessible to a broader audience.
FD-Backed Cards: Low FD Requirement
Several Indian banks and fintech platforms offer FD-backed credit cards with minimum fixed deposit requirements as low as ₹100, making them accessible for credit building. These cards often come with zero annual fees and provide credit limits up to 100% of the FD amount, ideal for beginners.
| Credit Card | Issuing Bank | Min FD (Rs) | Credit Limit (% of FD) | Annual Fee (Rs) | Ideal For |
|---|---|---|---|---|---|
| Utkarsh Small Finance Bank superCard | Utkarsh Small Finance Bank (with super.money) | ₹100 | Not specified | 0 | UPI payments, Cashback, Low entry point |
| SBM Bank India Step Up Credit Card | SBM Bank India (via aggregators) | ₹2,000 | Up to 90% | Not specified | Building credit, Low financial barrier |
| ZET/PhonePe-type FD cards | Fintech platforms | ₹2,000 | Not specified | Not specified | Beginners, Quick approval |
| IDFC FIRST EA₹N Credit Card | IDFC First Bank | ₹5,000 | 100% | 0 | Beginners, UPI Spends, Cashback |
| Kotak 811 #DreamDifferent Credit Card | Kotak Mahindra Bank | ₹10,000 | Not specified | 0 | Beginners, Low entry point |
| Axis Bank Insta Easy Credit Card | Axis Bank | ₹15,000 | Not specified | Not specified | No credit history, Freelancers, Students |
| SimpliFi Fi-Federal Credit Card | Federal Bank | ₹15,000 | Not specified | Not specified | Strategic spenders, UPI payments |
| SBI Card Unnati | SBI Card | ₹25,000 | 80-90% | 0 (first 4 years) | First-time users, Credit building |
| Bank of Baroda Prime Credit Card | Bank of Baroda | Not specified | Not specified | Not specified | Limited/no credit history |
These FD-backed credit cards offer a practical entry point for individuals with limited or no credit history to establish a strong CIBIL score.
Secured Credit Cards: Rewards & Cashback
FD-backed credit cards in India offer various rewards and cashback benefits, making them attractive for building credit history. As of 2026, cards like the IDFC FIRST EA₹N provide 1% cashback on UPI spends, while the SBM Bank Step Up card offers reward points and a large discount network.
| Credit Card | Issuing Bank | Min FD (₹) | Cashback/Rewards Rate | Special Offers | UPI Spends |
|---|---|---|---|---|---|
| IDFC FIRST EA₹N Credit Card | IDFC FIRST Bank | 5,000 | 1% Cashback on UPI Spends, 0.5% Cashback on All Other Spends, 10% Cashback Up to ₹250 (First Transaction) | FD interest up to 6.5% p.a. | Yes |
| SBM Bank (India) Step Up Credit Card | SBM Bank (India) | 2,000 | Reward points, UPI cashback | Life-time free, largest brand discount network, FD earns up to 7% p.a., credit limit up to 90% of FD | Yes |
| IDFC FIRST WOW! Credit Card | IDFC FIRST Bank | 5,000 | 1 reward point per ₹150 spent, up to 4X reward points on eligible transactions, 3X on UPI spends, 100% cashback on first four transactions (₹50 each) | Zero Forex markup fee, 100% credit limit of FD amount, zero joining fee, one complimentary international lounge access per quarter | Yes |
| Kotak 811 #DreamDifferent Credit Card | Kotak Mahindra Bank | 10,000 | Not specified | Lifetime free, up to 6.3% p.a. Interest on FD, personal accident insurance | Not specified |
| SBI Unnati Credit Card | SBI Card | 25,000 | Basic reward points, 2,000 bonus reward points on spending ₹2,000+ in 60 days | Zero annual fee for the first four years, fuel surcharge waiver, easy upgrade options | Not specified |
| IDFC FIRST Bank Hello CashBack Credit Card | IDFC FIRST Bank | 5,000 | Up to 5% Cashback | Assured savings, 100% secured by fixed deposits, credit limits of 80-90% of FD | Yes |
| Axis Bank Insta Easy Credit Card | Axis Bank | 15,000 | Not specified | Free add-on card, builds credit score without income proof | Not specified |
| Axis Bank Ace Credit Card | Axis Bank | 20,000 | 5% cashback on utility bills payment through Google Pay (no upper/lower limit) | Credit limit 80% of FD amount | Not specified |
| BOB Secured Credit Card | Bank of Baroda (BOB) | 15,000 | Reward points for purchasing oil, LPG, groceries (automatic redemption) | No upper limit for reward points | Not specified |
| SuperCard | Utkarsh Small Finance Bank (co-branded with super.money) | Not specified | 5% cashback on Myntra, 3% cashback on Cleartrip, 2% cashback on Flipkart, 1% cashback on all other spends | Cashback redeemable to bank account via super.money app, FD interest up to 6.5% | Not specified |
| Suryoday Small Finance Bank RuPay Platinum Secured Credit Card | Suryoday Small Finance Bank | Not specified | Cashbacks | Up to 10 complimentary airport lounge visits annually, higher FD interest rates (up to 8.25%+) | Yes |
| Rupicard | Not specified | 5,000 | Not specified | 100% guaranteed approval, FD booked with RBI-approved bank, earn up to 7% p.a. Interest on FD, option to top-up FD | Not specified |
Many FD-backed credit cards offer competitive reward structures, with some providing accelerated cashback on specific categories like utility bills or online shopping. These benefits, combined with the ability to earn interest on the underlying Fixed Deposit, the overall value proposition for cardholders.
FD-Backed Credit Cards: Key Features
FD-backed credit cards offer a pathway to credit for individuals without a credit history or regular income. These cards are secured by a fixed deposit (FD) held with the issuing bank, mitigating risk for the lender. As of 2026, major banks like HDFC Bank, SBI Card, Axis Bank, and ICICI Bank offer various FD-backed options.
- Credit Limit: Most banks offer a credit limit between 80% and 100% of the FD amount. For example, an FD of ₹25,000 typically secures a credit limit of ₹20,000 to ₹21,250.
- No Income Proof: Many FD-backed cards, such as the IDFC FIRST Bank FD-backed Rupay credit card, require no income proof for approval. This simplifies access for new-to-credit users.
- Instant Issuance: Several providers issue a virtual credit card instantly once the FD is booked. The IDFC FIRST Bank FD-backed Rupay credit card is ready for use immediately.
- FD Interest: The underlying fixed deposit continues to earn interest, with rates up to 6.5% p.a. On cards like the IDFC FIRST EA₹N Credit Card. Some FDs, like with SBM Bank (India) Step Up Credit Card, offer up to 7% p.a.
- Lifetime Free Options: Cards such as the Kotak 811 Dream Different Credit Card and Bank of Baroda Prime Credit Card are lifetime free, with no joining or annual fees. SBI Unnati Card offers zero annual fees for the first four years.
- Low Minimum FD: Cards like the SBM Bank (India) Step Up Credit Card and IDFC FIRST EA₹N Credit Card allow FDs as low as ₹2,000 to ₹5,000, making them accessible entry points.
- UPI Integration: Many modern FD-backed cards, including the IDFC FIRST Bank FD-backed Rupay credit card, support UPI payments for d convenience. The IDFC FIRST EA₹N Credit Card offers 1% cashback on UPI spends.
- Forex Markup: While some cards offer international transactions, a forex markup fee of around 3.5% typically applies, as seen with the IDFC FIRST WOW credit card.
These features make FD-backed credit cards a practical tool for building credit history while retaining interest earnings on the fixed deposit.
How FD-Backed Cards Build CIBIL
FD-backed credit cards are a tool for building or rebuilding a CIBIL score in India, especially for individuals without a credit history or with a low score. These cards use your Fixed Deposit (FD) as collateral, mitigating risk for banks and enabling easier approval. As of 2026, major banks like HDFC Bank, SBI Card, Axis Bank, and ICICI Bank offer such secured credit cards.
When you use an FD-backed credit card responsibly, your payment behavior is reported to credit bureaus like CIBIL. Consistent on-time payments and low credit utilization contribute positively to your credit score. This process helps establish a strong financial track record, which is for future unsecured loans or credit cards.
The credit limit on an FD-backed card is typically 80% to 100% of the fixed deposit amount. For example, an FD of ₹25,000 might secure a credit limit of ₹20,000 to ₹21,250. This structured limit encourages spending discipline, preventing overspending that could harm a developing credit score.
Many FD-backed cards, such as the IDFC FIRST Bank FD-backed Rupay credit card, offer lifetime-free benefits and require zero income proof. This accessibility makes them ideal for new-to-credit users, senior citizens, and students. The FD itself continues to earn interest, providing a dual benefit while you build your credit profile.
| Action with FD-Backed Card | Impact on CIBIL Score | Explanation |
|---|---|---|
| Paying bills on time (100% payment) | Positive | Demonstrates financial discipline; reported to credit bureaus monthly. |
| Keeping credit utilization low (below 30%) | Positive | Shows you are not credit-hungry; e.g., spending ₹6,000 on a ₹20,000 limit. |
| Using the card regularly for small purchases | Positive | Establishes active credit history without accumulating debt. |
| Defaulting on payments | Negative | Leads to late payment marks and potential FD liquidation by the bank. |
| High credit utilization (above 50%) | Negative | Signals potential over-reliance on credit, lowering your score. |
| Applying for multiple secured cards simultaneously | Negative | Each application results in a hard inquiry, temporarily lowering your score. |
| Closing the card after building score | Neutral to Slightly Negative | Reduces your overall credit limit and average age of accounts. |
| Upgrading to an unsecured card | Positive | Indicates improved creditworthiness, often after 12-18 months of good use. |
Eligibility & Application Process
FD-backed credit cards offer simpler eligibility criteria compared to regular credit cards, primarily requiring an Indian citizenship and a fixed deposit with the issuing bank. Most banks do not require formal income proof, making these cards accessible to individuals with limited or no credit history.
The application process is typically streamlined, often allowing for instant issuance of a virtual card once the FD is booked.
- Citizenship & Age: Applicants must be Indian citizens with a valid permanent address and be 18 years or older.
- Fixed Deposit Requirement: A mandatory fixed deposit (FD) must be opened with the bank issuing the credit card. Minimum FD amounts can be as low as ₹2,000 for some cards, like those offered by SBM-Paisabazaar Step UP.
- Income Proof: Many FD-backed credit cards, such as the Flipkart Super Money SuperCard, do not require income proof because the FD acts as collateral.
- Credit Score: A low or non-existent CIBIL score is generally not a barrier, as approval is based on the FD. This makes them ideal for credit-building.
- Application Channels: Applications can be submitted online through the bank’s website or mobile app, or offline at a bank branch. Many banks offer instant virtual card issuance.
The primary selection process for these cards relies solely on the fixed deposit, simplifying access to credit for many individuals.
FD-Backed vs Regular Credit Cards
FD-backed credit cards require a fixed deposit as collateral, making them easier to obtain for individuals with no or low CIBIL scores. In contrast, regular credit cards demand a strong credit history and income proof for approval. As of 2026, major banks like HDFC Bank and SBI Card offer both types of cards in India.
| Feature | FD-Backed Credit Card | Regular Credit Card |
|---|---|---|
| Collateral Requirement | Requires a fixed deposit (FD) as collateral | Does not require collateral |
| Approval Difficulty | Easier to get approved, even with no/poor credit history or low income | More challenging to qualify for, requires good credit score and income proof |
| Credit Limit | Typically 80%-110% of the FD amount (e.g., ₹20,000-₹21,250 for a ₹25,000 FD) | Based on income, credit score, and financial history |
| Credit Building | Excellent for building or rebuilding credit history (e.g., within 6 months of responsible use) | Helps build credit, but harder to obtain initially for new-to-credit individuals |
| Risk to Bank | Lower risk for the bank due to FD collateral; bank can recover dues from FD in case of default | Higher risk for the bank as there is no collateral |
| Benefits & Rewards | Generally offers limited rewards and benefits (e.g., cashback, basic reward points, fuel surcharge waiver) | Often comes with more extensive benefits like airport lounge access, dining, travel, and higher cashback |
| Documentation | Less/no paperwork, details pre-fetched from existing FD, no income proof often required | Requires income proof and detailed documentation |
| Interest on Deposit | FD continues to earn interest (e.g., up to 6.5% p.a.) | No associated deposit to earn interest |
FD-backed cards are ideal for new-to-credit users or those seeking to improve their CIBIL score, while regular cards suit individuals with established financial profiles.
Risks of FD-Backed Credit Cards
While FD-backed credit cards offer significant benefits for building credit, users must understand the associated risks. The primary risk involves the bank liquidating your Fixed Deposit (FD) to recover outstanding dues if you default on payments. This means your collateral, the FD, is at stake if you fail to manage your card responsibly.
Another consideration is the credit limit, which is typically 80% to 100% of the FD amount. For example, an FD of ₹25,000 might yield a credit limit of only ₹20,000 to ₹21,250. This lower limit can restrict spending capacity compared to unsecured cards. , some FD-backed cards, like the IDFC FIRST Bank FD-backed Rupay credit card, carry a 3.5% forex markup fee for international transactions, increasing costs for global usage.
Banks will not issue a secured credit card against an FD if you have already availed an overdraft facility on that same FD. This limits flexibility for individuals who use their FDs for other financial needs. Despite the ease of approval, careful financial discipline is to avoid the liquidation of your fixed deposit.
Key Takeaways
- FD-backed credit cards carry the risk of FD liquidation if card payments are defaulted, as the FD collateral.
- Credit limits on these cards are typically 80-100% of the FD amount, which may be lower than desired for some users.
- Some FD-backed cards, such as IDFC FIRST Bank’s Rupay variant, impose a 3.5% forex markup fee on international transactions.
Review the specific terms and conditions of your chosen FD-backed credit card with the issuing bank before application.
Frequently Asked Questions (FAQs)
What is an FD-backed credit card in India?
An FD-backed credit card is a secured credit card issued against a fixed deposit (FD) you hold with the bank. This FD acts as collateral, allowing individuals with no credit history or a low CIBIL score to get a credit card. Most banks offer a credit limit of 80% to 100% of the FD amount.
Which are the best FD-backed credit cards in India for beginners in 2026?
For beginners in 2026, top FD-backed credit cards include the IDFC FIRST WOW!, Kotak 811 #DreamDifferent, and SBI Unnati. These cards offer easy approval, low or zero annual fees, and help build a credit history. Many require a minimum FD of ₹5,000 to ₹10,000.
How does an FD-backed credit card help build a CIBIL score?
An FD-backed credit card helps build your CIBIL score by reporting your payment behavior to credit bureaus. Consistent, on-time bill payments demonstrate creditworthiness, positively impacting your score over time. A good payment history with a secured card can help you achieve a CIBIL score above 750.
What is the minimum FD amount required for a secured credit card in India?
The minimum fixed deposit amount required for a secured credit card in India typically ranges from ₹2,000 to ₹20,000, depending on the bank and card variant. For instance, the IDFC FIRST EA₹N Credit Card requires a minimum FD of ₹5,000. Always verify the specific requirement with the chosen bank.
What happens if I default on payments with an FD-backed credit card?
If you default on payments for an FD-backed credit card, the card issuer can use your fixed deposit amount to recover the outstanding dues. This is the primary security for the bank. Defaulting also negatively impacts your CIBIL score, making IT harder to get credit in the future.
Can I get cashback and rewards on FD-backed credit cards?
Yes, many FD-backed credit cards in India offer cashback and reward points, similar to regular credit cards. For example, the IDFC FIRST EA₹N Credit Card offers 1% cashback on UPI spends and 0.5% on other spends. These benefits make secured cards attractive for daily use.
How do I close an FD-backed credit card and what happens to my FD?
To close an FD-backed credit card, contact the respective bank’s customer support and clear any outstanding dues. Closing the credit card does not automatically terminate your fixed deposit account. Your FD remains active until you specifically request its closure or withdrawal.
Disclaimer: This article is general information, not financial advice. Interest rates, fees, and eligibility change frequently. Verify current details with the lender or regulator (RBI / SEBI) before deciding.