Top 5 Secured Credit Cards in India
27 Jan 2026 9 mins Credit Cards
In today's financial landscape, having access to credit is essential for managing expenses and building a healthy credit score. For many individuals, especially those new to credit or with a limited credit history, secured credit cards offer a viable solution. These cards require a cash deposit that serves as collateral, making them less risky for issuers and more accessible for consumers. If you're looking for the best credit cards to help you establish or rebuild your credit, secured credit cards in India can be a great option. This article will delve into the top secured credit cards available in India, their features, benefits, and how you can apply for them.
Understanding Secured Credit Cards
Before diving into the specifics of the top secured credit cards, it's crucial to understand what a secured credit card is. A secured credit card is a type of credit card that requires a cash deposit as collateral. This deposit typically becomes your credit limit. For example, if you deposit ₹20,000, your credit limit will be ₹20,000. This arrangement minimizes the risk for the issuer, making it easier for individuals with poor or no credit history to obtain a card.
Secured Credit Card vs Unsecured Credit Card
When comparing secured and unsecured credit cards, the primary difference lies in the requirement of collateral. An unsecured credit card does not require a deposit and is based solely on your creditworthiness. While unsecured cards often come with higher credit limits and rewards, they are also harder to obtain for those with no or poor credit history. Secured credit cards, on the other hand, are designed for individuals looking to build or improve their credit score. According to a report by the Credit Information Bureau (India) Limited (CIBIL), over 30% of credit card applicants in India have limited credit histories, making secured cards a crucial stepping stone towards financial inclusion.
Top 5 Secured Credit Cards in India
1. HDFC Secured Credit Card
The HDFC Secured Credit Card is a popular choice among Indian consumers looking to build their credit score. With a minimum deposit of ₹10,000, cardholders can enjoy a range of benefits, including:
Credit Limit: Up to 80% of the fixed deposit amount, which can help manage your finances effectively.
Rewards: Earn reward points on every spend, which can be redeemed for various offers, enhancing the overall value of the card.
Online Banking: Manage your account and payments through HDFC's online portal, providing convenience and ease of access.
Additionally, HDFC offers a flexible repayment option, allowing cardholders to pay their dues in installments. This feature can be particularly beneficial for those who may struggle with large payments. However, it is essential to note that the interest rates on secured credit cards can be higher than those on unsecured cards, typically ranging between 12% to 36% per annum, depending on the bank's policies.
2. SBI Secured Credit Card
The State Bank of India (SBI) provides a secured credit card option that comes with several attractive features:
Minimum Deposit: Starting from ₹25,000, which can be a barrier for some, but it ensures a higher credit limit.
Annual Fee: Waived off for the first year, allowing users to benefit without upfront costs.
Flexibility: Cardholders can convert their purchases into EMIs, providing a manageable way to handle larger expenses.
With the SBI Secured Credit Card, users can also enjoy rewards on their spending, making it a competitive choice in the market. SBI's extensive branch network also makes it easier to manage deposits and access customer service, which is a significant advantage for users who prefer in-person banking services.
3. ICICI Secured Credit Card
ICICI Bank offers a secured credit card that is ideal for individuals looking to enhance their credit profile. Key features include:
Deposit Requirement: Minimum of ₹20,000, which can be adjusted based on individual financial capabilities.
Credit Limit: Up to 90% of the fixed deposit amount, allowing for increased spending power.
Reward Points: Earn points on transactions, redeemable for various offers, including cashback and discounts on future purchases.
ICICI's secured credit card also allows users to access their account online, making it convenient to track expenses. The card's EMIs feature enables users to manage their finances better, especially during times of unexpected expenses. Furthermore, the bank provides regular updates on credit scores, which can be immensely beneficial for users aiming to improve their overall credit health.
4. Axis Bank Secured Credit Card
Axis Bank has crafted a secured credit card that caters to individuals who want to build or rebuild their credit history. Its features include:
Deposit: Minimum of ₹15,000, making it accessible for a wider range of applicants.
Credit Limit: Up to 80% of the deposit, providing a balance between security and usability.
Annual Fee: Waived for the first year, which encourages new users to try the card without financial commitments.
Axis Bank also allows users to convert their purchases into EMIs, providing flexibility in repayment. The card comes with various promotional offers and discounts, especially on travel and shopping, which can significantly enhance user experience. Additionally, Axis Bank offers a rewards program that allows users to earn points for each transaction, which can be redeemed for gifts, vouchers, and even travel bookings.
5. RBL Bank Secured Credit Card
The RBL Bank Secured Credit Card is another excellent option for those looking to build their credit score. Its features include:
Minimum Deposit: Starting from ₹10,000, making it one of the most accessible options available.
Credit Limit: Up to 100% of the deposit, allowing for maximum utilization of the collateral.
Rewards: Earn reward points on every transaction, making it competitive with unsecured cards.
RBL Bank also provides a user-friendly mobile app for easy management of the secured credit card. The card's competitive interest rates, typically around 13% to 24%, make it an attractive choice for consumers. The bank also offers personalized customer support, which can help users navigate any challenges they may face when using their secured card.
How to Apply for a Secured Credit Card
Applying for a secured credit card in India is a straightforward process. Here are the steps you need to follow:
Research: Compare different secured credit cards based on features, fees, and benefits. Utilize online comparison tools to find the best options tailored to your needs.
Choose a Card: Select the card that best suits your financial needs, taking into account factors like deposit requirements and reward programs.
Gather Documents: Prepare necessary documents such as identity proof (Aadhaar, PAN card), address proof (utility bills, rental agreements), and income proof (salary slips, bank statements).
Deposit Amount: Make the required deposit with the bank, which will serve as your credit limit.
Submit Application: Fill out the application form and submit it along with the required documents, either online or at a physical branch.
Once your application is approved, you will receive your secured credit card along with the terms and conditions. Remember to read the fine print to avoid any surprises, especially regarding fees and interest rates. It's also advisable to set up automatic payments to ensure timely repayments, thus enhancing your credit score over time.
Benefits of Using a Secured Credit Card
Secured credit cards come with several benefits, making them an attractive option for many:
Build Credit Score: Regular, responsible use can help improve your credit score significantly. According to CIBIL, timely payments can improve your score by 50-100 points within a year.
Financial Discipline: Limits help manage spending and avoid debt, fostering better financial habits.
Rewards Programs: Many secured credit cards offer rewards on purchases, similar to unsecured cards, allowing users to benefit from their spending.
Additionally, using a secured credit card responsibly can eventually lead to eligibility for unsecured credit cards, paving the way for greater financial freedom. The transition from a secured to an unsecured card often comes with enhanced benefits, including higher credit limits and more attractive rewards programs.
FAQs
What is a secured credit card?
A secured credit card is a type of credit card that requires a cash deposit as collateral, which serves as your credit limit. This card is specifically designed for individuals with no credit history or poor credit scores.
How does a secured credit card work?
When you use a secured credit card, the amount you deposit acts as collateral. Your credit limit is usually equal to your deposit, and responsible usage can help improve your credit score. The bank reports your payment history to credit bureaus, which is crucial for credit score improvement.
Are secured credit cards worth it?
Yes, they are beneficial for individuals looking to build or rebuild their credit history, especially if they have a limited or poor credit score. They also provide a safety net for banks, making it easier for consumers to access credit.
How can I improve my credit score with a secured credit card?
By making timely payments, keeping your credit utilization low (ideally below 30%), and using the card regularly, you can positively impact your credit score. Additionally, reviewing your credit report regularly can help you track your progress and address any discrepancies.
Can I convert my secured credit card to an unsecured credit card?
Many banks allow you to upgrade your secured credit card to an unsecured one after demonstrating responsible usage over a period, typically 6-12 months. This transition often comes with better rewards and higher credit limits, facilitating greater financial flexibility.
Conclusion
Secured credit cards in India offer a valuable opportunity for individuals looking to build or improve their credit scores. With options like the HDFC Secured Credit Card, SBI Secured Credit Card, ICICI Secured Credit Card, Axis Bank Secured Credit Card, and RBL Bank Secured Credit Card, consumers have a range of features and benefits to choose from.
As you consider applying for a secured credit card, ensure you compare the options available and choose one that aligns with your financial goals. Remember, responsible use will not only help you manage your finances effectively but can also set you on the path to greater financial opportunities. By engaging with these financial products wisely, you can pave the way for a brighter financial future.
If you're interested in learning more about credit cards, check out the top reward credit cards available in the market.
Find the Best Mutual Funds for your every investment goal. Explore top mutual funds and start your SIP Today!
Find the Best Credit Card for your spending habits. Explore top credit cards and maximize your rewards.
Get a Personal Loan that fits your needs. Apply for loans from Rs 1000 to Rs 15 Lakhs with competitive rates.
Author - Abhishek Sonawane
Abhishek Sonawane, an MBA graduate from the prestigious Indian Institute of Management Visakhapatnam (IIMV), brings over ten years of experience in the finance domain. His extensive background includes various roles in financial management and strategy, providing him with a comprehensive understanding of the financial landscape. Abhishek’s expertise and dedication to financial education make him an authoritative voice in personal finance, helping readers make informed financial decisions.