If you want to make investments without taking any risks, fixed deposits are a great financial tool. However, one drawback of FDs is their low rates. Nevertheless, a number of major financial institutions, including SBI, PNB, and HDFC Bank, offer and promote FDs.
For fixed deposits, Punjab National Bank now offers credit cards. It is intended for individuals who are ineligible for conventional credit card applications. This group includes individuals with low CIBIL scores. India’s PNB is the country’s second-largest public sector bank.
Those who have fixed deposits with the bank will be included in this program. A credit card is open to PNB FD holders. They will receive VISA or RuPay credit cards from PNB. However, the amount of money deposited in PNB will determine the credit card limit.
They will receive a credit limit from PNB that is equal to 80% of the money they have deposited. Typically, credit cards are unsecured loans. This indicates that it is a loan secured by nothing.
Those who have a clean credit history and a high credit score are given these. Therefore, you can utilize this facility to obtain a credit card if you are unable to secure one for any reason, including a bad CIBIL loan.
These cards have the advantage of requiring no documentation. By applying for PNB credit cards and repaying them on time, people with poor credit can improve their scores.
Credit cards that are applied to FD will not be subject to joining or annual fees. No proof of income will be required. The money will be taken from your FD if you are unable to make payments.
The monthly interest rate will be 1.5 percent. The over-limit fee will be 2.5%. Fees for late payments will be 30% of the minimum amount. Each card will incur a Rs 100 repayment fee.
