PNB Credit Card against FD launched! How to Apply & more

PNB has recently launched a new credit card that customers can avail of against their fixed deposit. Below are the full details of the new PNB bank credit card against FD, how to apply, benefits & the minimum FD amount

by Vrushali.S Updated: 24 Jan, 2023, 19:21 IST
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If you are a PNB account holder, there’s some good news for you. On January 19th, Punjab & National Bank launched its new PNB credit card against Fixed Deposit (FD). Customers can get benefits such as exciting rewards, UPI linkage with RuPay credit card, and comprehensive insurance coverage. Below are all the details on how to apply for the PNB credit card against FD, its benefits, minimum FD amount, interest rate, who can apply, and how to apply for the same.

PNB Credit Card against FD Term launched



What is a Credit Card against Fixed Deposit (FD)?

A credit card against Fixed Deposit (FD) is a type of secure credit card that a customer can avail of in exchange for the security of their fixed deposit amount with the bank. With this type of credit card, cardholders generally get an 80% credit limit of their fixed deposit amount. The minimum fixed deposit amount is usually anywhere between ₹10,000 to ₹20,000 and the interest rates are also seen to be lesser on credit cards issued against FD.


PNB Credit Card on FD Details

PNB Credit Card against FD is launched and customers can avail the credit card in exchange for keeping a fixed deposit with the bank. Below are the details of the PNB credit card against FD.

PNB Credit Card on Fixed Deposit

Joining fee

Nil

Annual fee

NA

Credit Limit

80%

Minimum FD amount

₹10,000

Minimum Tenure

6 months

Rate of interest

1.56% per month, 19.56% annually (expected)

FD Interest Rate

4.50% to 5.50% (expected)

Interest Free Period

NA (Generally, it is 48 days to 55 days)

Rewards

Lounge access, reward points, cash advance

Cash advance limit

40% of the credit limit (expected)

Benefits

No documentations required, benefits of UPI linkage on RuPay credit cards, comprehensive insurance coverage on RuPay variant

Who can Apply

Students, customers with bad credit score, senior citizens

Thanks to @luciferous @abhishek012 @chagg and other dimers for sharing some of these details with us in our PNB credit card against FD deal posted by @shaleen

How to Apply for PNB Credit Card on FD?

To apply for the PNB bank credit card, follow the following steps:


  • Sign up or log in to PNB One app using your registered account number

  • Look for an option that says “Apply for credit card against FD”

  • If unable to find, create a FD in the PNB bank through the PNB One app (skip if you have an existing FD)

  • You will then get an additional option to apply for credit card against FD in the same app

  • You may also connect with PNB bank support on: 0120-4616200 or 1800 180 2345 for more info


Thanks to our dimer @chagg for sharing these steps with us and other dimers.


FAQ on Applying for the PNB Credit Card on Fixed Deposit
  1. What are the benefits of a PNB credit card against FD?

The benefits available on a PNB credit card against FD are reward points & offers, lounge access, and UPI linkage (on the RuPay variant). Credit cards against FD also have slightly higher interest-free periods.


  1. What is the minimum FD amount for a PNB credit card against FD?

The minimum FD amount for issuing a PNB credit card on FD is ₹10,000


2. Can students apply for a PNB credit card against FD?

    Yes, students who have an existing FD account in PNB bank can avail of a credit card against their FD


    3. Does credit card against FD affect credit score?

      A credit card against FD is a secured type of credit card that can be availed even if you have a bad credit score. Customers can improve their credit scores by making regular and timely payments on their credit cards with FD.


      4. How much FD is required for a credit card?

        Generally, the minimum FD amount required for issuing a credit card against FD is ₹10,000 to ₹20,000




        Back in 2013, there were approx 19.5 million credit cards in India and the same number has shot up to 62 million in 2021. As consumer spending increases, the demand for credit cards also increases. Indian banks today have become more cautious about lending credit cards than ever before after having lost billions of crores in loan frauds.

        This is where a credit card against FD plays its importance. A credit card against FD is a secure credit card that minimizes the risk to the bank while the cardholder gets benefits such as interest-free periods, improved credit score, incurs much lower interest rates, and rides out most paperwork needed.

        Needless to say, it's evident that if you fail to pay your credit card bills, the bank has all the right to break your FD. But if you are responsible about paying your credit bills on time, It’s a good option to consider especially if you have just started earning, are a student or are a senior citizen.


        PS: Thanks to @shaleen for first sharing this news with us. You can check out the post here.

        Next Recommended Read: PNB launches pre-qualified credit card facility | How to apply & more


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