Loan Against Student Credit Cards: The disbursement of loans requested through 80,000 student credit cards by January 15, 2023, was recently confirmed at a meeting of the State Level Bankers Committee held in Nabanna, West Bengal. Furthermore, the Committee noted that 21,000 of these petitions had previously been turned down, and they expressed confidence in their ability to pay off the outstanding balances by December 2022.
You can apply for a student credit card if you are currently pursuing higher education to pay for tuition, purchase all required textbooks, and cover other everyday expenses. Continue reading to learn more about student credit cards.
How Will Banking Problems Affecting Approval of Student Credit Cards Be Solved?
A total of 37,782 student credit cards with a combined loan value of Rs. 1,105 Crores were approved, according to the announcement made by the authorities at the most recent SLBC meeting, which was held on December 23rd in Nabanna. Also, W.B. authorities from the Finance Department confirmed that loan requests for 80,000 student credit cards will be properly processed by January 15th.
As the state government indicated that it would be the guarantee, banks can now simply approve the loans.
For a Student Credit Card, who may apply?
For a large number of students who desire to continue their education both domestically and abroad, the programme will show to be beneficial. You can apply for these loan options to pay for secondary or further secondary education in addition to a university education. Also, you can apply for this SCC programme if you want to enrol in a madrasah.
Moreover, coaching organisations often demand upfront credit facilities for their high fees. Therefore you can choose this financing option if you want to study for competitive exams like IPS, IAS, JEE, medical, law, WBCS, etc. Just 4% annual interest is charged on the borrowing amount. Additionally, a person is qualified for a loan of Rs. 10 lakhs to cover their numerous educational expenses, such as the cost of textbooks, travel expenses, hostel fees, etc.
What Prerequisites Must Be Met to Qualify for a Loan Against Student Credit Card?
Since students are applying for student credit cards rather than typical working professionals, banks do not set standard credit card eligibility requirements for these applicants. To ensure receiving a loan against a credit card, you must therefore meet the following requirements in place of the traditional requirements.
Apply Against an FD in a Bank
The most practical way to apply for the SCC plan is through this technique. Although the amount deposited in that account must exceed a particular level, you must still offer your FD as collateral. All financial institutions have a different minimum account balance, so you must speak with the bank staff to find out the actual amount.
Use an existing loan or savings account by applying
If you don’t fulfil the FD requirements of your preferred banking partner, think of this as your backup plan. You must keep a consistent monthly amount in your savings account to make sure it satisfies the eligibility criterion. Some banks also provide their customers who have a student credit card with a savings account as the collateral with an additional credit card.
fulfil the requirements for government programmes
The West Bengali government has introduced its own programme for student financial aid. The governments of Jharkhand and Bihar each have specialised programmes. You can easily apply for the schemes after determining whether you match the eligibility requirements.
Request to Be an Add-On Card
If any of your family members already have a credit card, it can be an excellent alternative for quick approval of student loans. The principal cardholder must, however, have a strong credit history in order for your application to be approved. Know more How To Avoid Online Finance Scams In 2023?
What Advantages Come with a Student Credit Card?
When requesting a student credit card, you should be aware of a few less-discussed advantages. They consist of:
- The credit limit is purposefully maintained modest to prevent students from making excessive amounts of impulsive purchases.
- The cash withdrawal cap is similarly extremely low to guarantee that the money is only used in cases of need.
- Low interest rates ease the burden of repayment.
- A student credit card’s validity ends five years after it is issued. It makes sure you only use the loan money to pay for expenses that arise throughout the course of the course.
- After you secure employment, many banks let you upgrade your student credit card to a regular credit card. If you have been making on-time repayments, it gives you the chance to retain a stellar credit report. With this history, you can quickly switch to a more expensive credit card.
- There are no annual fees for student credit cards.
As you can see, banks offer a lot of benefits to a student who is having trouble paying for school. You may apply for a student credit card online with only a few credentials and a few minutes of your time. These loans are provided at extremely cheap interest rates by both banks and a few state governments. Everyone can then easily pursue their goals without having to worry about funding sources as a result.
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