Paisabazaar.com, India’s largest lending marketplace and Credit Score platform, and SBM Bank India, the youngest universal Bank, launched the ‘Step Up Credit Card’, a credit-builder product, to meet the credit needs of underserved segments.
- Step Up Credit Card is a secured credit card, provided against the customers’ Fixed Deposit (FD).
- It was the 1st product that was launched under Paisabazaar’s neo-lending strategy.
Key points about Step Up Credit Card:
i.It will help the consumers with damaged credit or no credit history to build their Credit Score. The card was launched initially as a pilot program.
ii.The Card could be availed by the customers on the Paisabazaar platform through a completely digital and paperless process, with instant issuance and activation.
iii.It has a joining fee of Rs 500 and the Credit limit under the card is about 83 percent of the customer’s FD amount. It also provides a return on FD at an interest rate of 6.5 percent per annum.
Credit Card Penetration in India:
i.As per Reserve Bank of India (RBI) data, the credit cards penetration is decreasing gradually by 5 percent and only ~60 million active Credit Cards exist in India.
ii.Based on the analysis by Paisabazaar, In India, only ~25 – 30 percent of those who applied for a credit card are getting it and around 30 percent of rejections for credit cards by Banks are mainly due to ineligible credit scores.
Recent Related News:
On 8th April, 2021, U GRO Capital in partnership with SBM Bank India launched “GRO Smart Business” credit card for Micro, Small and Medium Enterprises (MSMEs). The Credit Card is powered by RuPay, along with EnKash. These are specially designed for underbanked micro, small and medium enterprises (MSMEs).
It is a part of PB Fintech, in 2018 it launched India’s first model to enable loan applicants to choose their most-suited lender for Loans & Credit Cards named ‘Chance of Approval’.
Establishment – 2014
Headquarters – Gurugram, Haryana
Co-Founder & Group CEO – Yashish Dahiya
About SBM Bank (India) Ltd:
- It is the 1st bank to receive a universal banking license from RBI to set up and operate as a Scheduled Commercial Bank under Wholly Owned Subsidiary (WOS) mode offering banking services in India.
- 1st December 2018, it became the 1st foreign bank in India to operate as a new Indian bank.
Establishment – 1994
Headquarters – Mumbai, Maharashtra
MD & CEO – Sidharth Rath