Friday, May 20, 2016

Credit Card for Self Employed in India

  

India is slowly moving towards becoming a country of entrepreneurs as more and more individuals are saying good bye to their jobs or denying placement offers to start their own company. With this rising number of self employment it is becoming equally difficult for an entrepreneur to arrange a starting capital to manage expenses. However there are many credit cards for self employed in India offered by most of the banks and card companies which can help during the initial phase of growth. And these individuals can now easily get a credit card and in turn run their businesses smoothly without worrying much about the funds. Of course, venture capitalists are pumping in lot of money in start-ups but not everyone can meet their requirement. And for such individuals credit card is a big rescuer.

How self employed can apply for a credit card?

Many card companies/banks offer best credit cards to the self employed and each have its own eligibility criteria, terms and conditions, benefits, features and others. So let's get into the details:

Eligibility:

  • Minimum age limit: 18 years
  • Minimum income per annum. This is the most important eligibility criteria for each and every bank/card company. For e.g. to apply for an HSBC gold card, self employed person should have annual income of Rs. 5, 00, 000. And this is required to check the repayment capacity of the person.
  • No payment or credit default or debt
  • Good credit history
  • Some banks also require bank account with them. And it should be active with trading done for minimum 1 year
  • Address proof (Landline telephone bill, ration card, passport & others)
  • Identification document proof (PAN card, election card & others)

How to apply for a credit card – documents required:

The first step to get a card is filling the application form and submitting the following documents:

  • PAN Card
  • ID and address proof
  • Business card
  • Latest income tax returns
  • Form 16A
  • Colored photographs
  • Age proof: Although not required by every company/bank, few might request it

Which companies offer credit cards for self-employed person?

Here are few banks or companies offering credit card for self employed along with the card names:

  • Bajaj Finserv World Card and Platinum Card
  • HSBC Gold Credit Card
  • American Express – Platinum Card, Platinum reserve card
  • Axis bank gold credit card
  • HDFC silver and gold card & many others

Benefits and features:

Credit card being a competitive industry, every bank or card company tries to lure new customers with freebies, reward points, cash back and many others. However listed below are the most commonly offered benefits:

  • Reward points: For every purchase at grocery/retail stores and at other places
  • Bill payments: Mobile, landline, electricity and others
  • Vouchers: Holiday, entertainment

Features to check before buying a card:

Before a self employed person selects a card, he/she should look for following features as they can help in saving a good amount of money and make life easy:

  • Joining fee
  • Annual fee
  • Card cancellation fee
  • Credit limit
  • Billing cycle
  • Bill payment methods
  • Late fees
  • 24*7 customer support
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