Synopsis: This article talks about a Rupay Credit Card that requires no income-proof, FD-backed and offers cashback in most of the categories. The article aims to help readers understand the features of the card and help them choose the right card for their needs.
SBM ZET Credit Card, a co-branded product of ZET (formerly Magnet) and SBM Bank India, fills this exact gap. It offers a Fixed Deposit account, lifetime free, and UPI functionality, making it an ideal credit-building tool.
What is an SBM Zet Credit Card?
SBM ZET Credit Card is a secured, RuPay-enabled credit card that has been introduced by SBM Bank India along with ZET, which is a secured credit card. The term ‘secured’ here refers to the fact that there is a fixed deposit account made in SBM Bank, and the credit limit on this secured credit card would be 90% of the total fixed deposit. With this type of secured credit card, the bank can offer credit cards even to those people who do not have any credit score or history.
Key Features and Benefits
- FD-Backed Scheme with Interest at 7%: SBM ZET credit card mandates an initial deposit in the form of a Fixed Deposit with SBM Bank India. The minimum Fixed Deposit amount stands at ₹2,000, which makes this product available for customers across a broad income spectrum. Notably, the Fixed Deposit keeps earning interest at a rate of up to 7% annually during the entire period of the card usage, implying that the money parked in the FD is not idle but continues to work for you as well as acting as collateral for your card balance. The Fixed Deposit is also insured against up to ₹5 lakh by the DICGC under the DICGC Act, 1961.
- Life-Time Free Credit Card (No Joining or Annual Fees): This card has no joining or annual fees. There is no requirement to cross any threshold for waiver, the credit card is lifetime free.
- Income Verification or Credit Score Not Needed: This credit card does not need income slips, bank details, or ITRs. As a result, this particular credit card is well-suited for students, gig workers, homemakers, or those who have the means to open an FD but are unable to provide income proof.
- Spend Money Using UPI: This credit card can be used to spend money through UPI. With most retailers in India accepting UPI, you can use this credit card anywhere and everywhere. This extends the card’s usability well beyond traditional point-of-sale terminals.
Cashbacks, Rewards, and Discounts
The rewards program for the SBM ZET Credit Card includes several cashbacks and vouchers through brands and platform-specific offers:
- Up to 20% discounts on Swiggy, Zomato, Instamart, and BookMyShow
- 5% flat cashback on Amazon Pay and Flipkart vouchers
- Up to 15% cashback on vouchers from 80+ top brands
- Cashbacks are redeemable into cash and can be credited straight into the card holder’s bank account
If the card holder opts for ZET Plus for ₹3/day (₹90/monthly subscription), he will get some more perks, such as:
- 2% cashback on every ZET UPI transaction
- No charge when purchasing vouchers
- ZCoins have lifetime validity
- Protection against online fraud and identity theft
To apply for the card, please visit the Official Website
Fees and Charges
Although the card itself is free, there are some charges in terms of operations. The interest charged on outstanding amounts and cash withdrawn stands at 3.5% per month, just like what most other companies do regarding secured cards. The late payment charge of Rs. 299 will be incurred in case the minimum amount due is not paid on the due date.
There is a charge of 3.5% of the cash withdrawal from the ATM, but a maximum limit of Rs. 300 will be applicable for this charge. There is also a charge of Rs. 249 + GST for the replacement of the card, whereas the cancellation fee is Rs. 499 + GST during the first year.
SBM Zet Credit Card at a Glance
Conclusion
The Indian credit card market is no longer content with an age-old approach to card products. Lenders and fintechs are creating products that cater to various stages of people’s lives and different kinds of financial profiles, such as premium travel cards for frequent flyers, cashback cards for internet shoppers, co-branded cards for brand loyalists, and secured cards for credit-building individuals. This trend shows an increasing understanding that everybody has different financial needs and that there shouldn’t be any barriers in terms of access to credit, which should remain open for everybody, especially those who lack the necessary experience.
SBM ZET Credit Card perfectly represents this trend. It’s not a card for a well-established credit user with high-end requirements, such as lounge access or air miles rewards. The product targets young professionals, students, or anyone unable to get a credit card from other banks because of low credit ratings. What makes this offer so interesting is the possibility to get not only a new credit but also an interest-bearing Fixed Deposit with an annual rate of up to 7%, guaranteed by the DICGC.
With more specialisation expected in the credit cards offered by Indian banks and fintechs, the SBM ZET card is a natural progression in the concept of financial inclusion. Here, the same financial tool that helps create a credit score also helps create savings, with an FD of ₹2,000 being the only eligibility requirement. Choosing a credit credit should be done based on the spending habits and ability to pay the dues.
Written by Shrikara
