Introduction to SBI Credit Card Unnati
The SBI Card Unnati is a secured credit card offered by the State Bank of India (SBI), designed to cater to individuals who are looking to build or improve their credit score. Targeted primarily at first-time credit card users and those with a limited credit history, this card stands out due to its minimal entry barriers and low cost. One of the key highlights of the SBI Card Unnati is that it is issued against a fixed deposit of โน25,000 or more with SBI, ensuring that the risk for both the cardholder and the bank is minimized.
This card is positioned as an entry-level product, offering a blend of basic yet useful features, including a straightforward rewards program, milestone benefits, and essential financial tools like balance transfer on EMI and Flexipay. With a waived annual fee for the first four years, the SBI Card Unnati presents an accessible option for those new to credit or looking for a simple, cost-effective credit card solution.
SBI Credit Card Unnati
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Joining Benefits of SBI Unnati Credit Card
- No Annual Fee for the First 4 Years:
- Enjoy zero annual fees for the first four years, making it a cost-effective option.
- Easy Approval:
- Simple eligibility criteria, with no income proof required, as the card is issued against a fixed deposit of โน25,000 or more with SBI.
- Reward Points:
- Earn 1 Reward Point for every โน100 spent on all retail purchases, except fuel.
- Fuel Surcharge Waiver:
- 1% waiver on fuel surcharge across all petrol pumps in India for transactions between โน500 and โน3,000.
- Cash Withdrawal Facility:
- Withdraw cash up to 90% of your credit limit from ATMs, offering liquidity in emergencies.
- Interest-Free Period:
- Up to 50 days of interest-free credit on purchases.
- Flexible Payment Options:
- Option to convert large purchases into easy monthly installments (EMIs).
- Security Features:
- EMV chip-enabled card for enhanced security against counterfeiting and skimming.
- Complimentary Insurance:
- Personal accident cover for the cardholder, providing added security.
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Eligibility Criteria of SBI Credit Card Unnati
The SBI Card Unnati has straightforward eligibility requirements, making it accessible to a wide range of potential users, particularly those new to credit or with limited credit history. The primary criteria for eligibility include:
- Fixed Deposit Requirement:
- The card is issued against a fixed deposit of at least โน25,000 with the State Bank of India (SBI). The fixed deposit acts as collateral for the credit card, reducing the risk for the bank and allowing individuals with no or low credit scores to obtain the card.
- Age:
- Applicants must be at least 18 years old to be eligible for the SBI Card Unnati. There is no upper age limit specified, but applicants should be capable of entering into a legal contract.
- Residential Status:
- The card is available to Indian residents who have a fixed deposit with SBI.
- Credit History:
- Since the card is secured by a fixed deposit, there are no stringent credit history requirements. This makes the SBI Card Unnati ideal for first-time credit card users or individuals looking to rebuild their credit.
- Existing SBI Fixed Deposit Account:
- Applicants should already have or be willing to open a fixed deposit account with SBI to be eligible for this card.
Card Features and Benefits of SBI Credit Card Unnati
The SBI Card Unnati offers a range of features and benefits tailored to meet the needs of entry-level credit card users. Below is a detailed overview of what cardholders can expect:
1. Rewards Program
- Earning Rewards: Cardholders earn 1 Reward Point for every โน100 spent on the card. This simple and straightforward rewards structure allows users to accumulate points with every purchase, which can be redeemed against a variety of products and services from the SBI Rewards Catalogue.
- Redemption: Accumulated Reward Points can be redeemed for gifts, vouchers, or other offerings available in the Rewards Catalogue. This feature adds value to everyday spending.
2. Milestone Rewards
- Annual Cashback: Cardholders who spend โน50,000 or more in a membership year are entitled to receive a โน500 cashback. This milestone reward is credited within 15 days of achieving the specified spending threshold. It's a valuable benefit for those who regularly use their card for purchases, effectively reducing the card's overall cost.
3. Fuel Surcharge Waiver
- Fuel Freedom: The SBI Card Unnati offers a 1% fuel surcharge waiver on transactions between โน500 and โน3,000. This waiver is particularly beneficial for those who frequently purchase fuel, as it helps to offset the additional costs typically associated with using a credit card at fuel stations.
4. Worldwide Acceptance
- Global Reach: The card is accepted at over 24 million outlets worldwide, including 3,25,000 outlets in India. This extensive acceptance network ensures that cardholders can use their SBI Card Unnati for purchases both domestically and internationally.
5. Contactless Advantage
- Easy and Secure Transactions: The SBI Card Unnati is equipped with contactless payment technology, allowing users to simply wave their card at a secure reader to complete transactions. This feature enhances convenience, especially for small purchases, and adds an extra layer of security as the card never leaves the userโs hand, reducing the risk of card loss or fraud due to skimming.
Pricing and Plans of SBI Credit Card Unnati
The SBI Card Unnati is designed to be an affordable and accessible credit card option, especially for those entering the credit card market for the first time. Below is a breakdown of the key pricing elements and plans associated with this card:
1. Annual Fees
- First Four Years: The SBI Card Unnati comes with an attractive offer of zero annual fees for the first four years. This feature makes it an appealing choice for budget-conscious users, as it eliminates any upfront costs typically associated with credit cards.
- Renewal Fee (5th Year Onwards): Starting from the fifth year, a renewal fee of โน499 per annum is charged. This fee is relatively modest, especially considering the benefits and rewards offered by the card. The renewal fee could be easily offset by utilizing the card's rewards and milestone benefits.
2. Add-on Fee
- No Additional Charges: There are no annual fees for add-on cards issued under the SBI Card Unnati. This feature allows cardholders to extend the benefits of their credit card to family members (such as parents, spouses, or children above 18) without incurring extra costs.
3. Other Fees and Charges
- General Terms: The cardholder is subject to standard fees and charges as outlined in the cardโs terms and conditions. These include charges for late payments, cash advances, and balance transfers. Additionally, all taxes applicable to these fees will be charged as per current regulations.
- Order of Payment Settlement: Payments made towards the card account are settled in a specific order, typically starting with the minimum payment due, followed by fees, interest charges, and then principal amounts. This structured approach to payment settlement helps in managing outstanding balances effectively.
4. Interest Rates and Flexipay Options
- Interest Rates: The interest rates applicable to the SBI Card Unnati are in line with the bankโs standard rates for credit cards. These rates apply to any unpaid balances after the due date, as well as to cash advances.
- Flexipay: The card offers a Flexipay facility, allowing cardholders to convert eligible purchases (of โน2,500 or more) into easy monthly installments (EMIs). This option provides flexibility in managing larger expenses without straining monthly budgets. Users can opt for Flexipay within 30 days of making the purchase.
5. Balance Transfer on EMI
- Lower Interest on Outstanding Balances: Cardholders can transfer the outstanding balances from other bank credit cards to their SBI Card Unnati at a lower interest rate. This feature is particularly useful for those looking to reduce their debt repayment burden by consolidating it under a more manageable EMI plan.
User Experience
The SBI Card Unnati is designed to offer a straightforward and user-friendly experience, making it an excellent option for first-time credit card users. This section delves into various aspects of the user experience, from the application process to the cardโs usage and security features.
1. Application Process
- Simple and Accessible: The application process for the SBI Card Unnati is relatively simple and can be initiated through SBIโs branches or online platforms. Since the card is secured against a fixed deposit, the approval process is generally smoother and faster compared to unsecured credit cards.
- Minimal Documentation: Applicants are required to provide basic documentation, including proof of identity, address, and the fixed deposit details. This minimal paperwork makes the card easily accessible to a wide range of customers, including those with limited credit history.
2. Usage and Security Features
- Contactless Payments: The SBI Card Unnati is equipped with contactless payment technology, allowing users to make quick and secure transactions by simply waving the card at a compatible reader. This feature enhances convenience, particularly for small-ticket purchases, and adds a layer of security by reducing the need to hand over the card to merchants.
- Global Acceptance: The card is accepted at over 24 million outlets worldwide, providing users with the flexibility to make purchases both domestically and internationally. This global acceptance ensures that cardholders can rely on their SBI Card Unnati for a wide range of transactions, from everyday expenses to travel-related purchases.
- Security Measures: The card includes standard security features such as an EMV chip, which protects against fraud due to skimming, and the option to enable or disable international transactions through the SBI Card mobile app or website. Additionally, users can set transaction limits and receive instant alerts for all transactions, further enhancing the security of the card.
3. Add-on Cards
- Family Benefits: The SBI Card Unnati allows cardholders to issue add-on cards to their family members, including parents, spouses, and children over the age of 18. These add-on cards share the credit limit of the primary cardholder and are useful for managing family expenses under a single account. Importantly, there is no annual fee for these add-on cards, making them a cost-effective way to extend the benefits of the card to other family members.
4. Flexipay and Balance Transfer on EMI
- Flexipay: Cardholders can convert eligible transactions of โน2,500 or more into easy monthly installments through the Flexipay feature. This option is particularly useful for managing larger purchases, allowing users to spread the cost over several months with interest. Flexipay can be activated within 30 days of the purchase, providing flexibility in payment planning.
- Balance Transfer on EMI: The balance transfer feature allows users to transfer outstanding balances from other credit cards to the SBI Card Unnati and repay them in installments at a lower interest rate. This can help users manage their credit card debt more effectively by consolidating it under a single, more affordable payment plan.
Comparative Analysis: SBI Credit Card Unnati
| ๏ปฟFeature/Criteria | SBI Card Unnati | Axis Bank Insta Easy Credit Card | ICICI Bank Instant Platinum Credit Card | HDFC Bank MoneyBack Credit Card | Kotak Mahindra Aqua Gold Credit Card |
|---|---|---|---|---|---|
| Type | Secured (against FD) | Secured (against FD) | Secured (against FD) | Entry-level (Unsecured) | Secured (against FD) |
| Minimum Fixed Deposit | โน 25,000 | โน 20,000 | โน 20,000 | N/A | โน 25,000 |
| Annual Fee | Nil (First 4 years), โน499 from 5th year | Nil | Nil | โน500 (waived on spends >โน50,000) | Nil |
| Rewards Program | 1 Reward Point per โน100 spent | 1 Reward Point per โน200 spent | 2 PAYBACK Points per โน100 spent | 2 Reward Points per โน150 spent | 1 Reward Point per โน100 spent |
| Milestone Rewards | โน500 Cashback on โน50,000 annual spend | N/A | N/A | 2,500 Reward Points on annual spend of โน50,000 | N/A |
| Fuel Surcharge Waiver | 1% waiver (โน500 - โน3,000 transactions) | 1% waiver (โน400 - โน4,000 transactions) | 1% waiver (โน400 - โน4,000 transactions) | 1% waiver (โน400 - โน5,000 transactions) | 1% waiver (โน500 - โน3,000 transactions) |
| Interest Rate | 3.35% per month | 2.50% per month | 2.49% per month | 3.49% per month | 2.50% per month |
| Contactless Payments | Yes | No | No | Yes | Yes |
| Balance Transfer Facility | Yes | Yes | Yes | Yes | Yes |
| Flexipay/EMI Conversion | Yes (on spends >โน2,500) | No | Yes (on spends >โน3,000) | Yes (on spends >โน2,500) | No |
| Global Acceptance | Yes | Yes | Yes | Yes | Yes |
| Add-on Card Fee | Nil | Nil | Nil | Nil | Nil |
| Eligibility | Indian resident, 18+, FD with SBI | Indian resident, 18+, FD with Axis Bank | Indian resident, 18+, FD with ICICI Bank | Indian resident, 21+ with stable income | Indian resident, 18+, FD with Kotak Bank |
Summary:
- SBI Card Unnatiย stands out for its 4-year no annual fee offer, making it a cost-effective option initially. It offers basic rewards and a milestone cashback that can cover the fee from the 5th year.
- Axis Bank Insta Easy Credit Cardย offers a lower interest rate but lacks some features like milestone rewards and contactless payments. It's a solid choice for those seeking minimal fees.
- ICICI Bank Instant Platinum Credit Cardย provides slightly better rewards on general spends and also features a low interest rate, but with limited extra benefits.
- HDFC Bankย MoneyBackย Credit Cardย is an unsecured card with a good rewards program but comes with an annual fee unless waived. It's suitable for those who want more rewards and are okay with an unsecured card.
- Kotak Mahindra Aqua Gold Credit Cardย is similar to SBI Card Unnati in its simplicity but doesnโt offer milestone rewards or Flexipay, though it does maintain low costs.
Pros and Cons of SBI Credit Card Unnati
To provide a balanced perspective on the SBI Card Unnati, hereโs a detailed look at the advantages and potential drawbacks of this credit card.
Pros
- No Annual Fee for First 4 Years:
- The SBI Card Unnati is free of any annual fees for the first four years, making it an economical choice for beginners who want to avoid initial costs.
- Secured Card with Easy Eligibility:
- Since the card is issued against a fixed deposit, it has minimal eligibility requirements. This makes it accessible to individuals with no or low credit history, offering a gateway to building or improving credit scores.
- Milestone Cashback Reward:
- Cardholders can earn a โน500 cashback upon reaching an annual spend of โน50,000. This benefit effectively offsets the cardโs renewal fee from the fifth year onwards.
- Fuel Surcharge Waiver:
- The card offers a 1% waiver on fuel surcharge for transactions between โน500 and โน3,000, which is beneficial for those who frequently purchase fuel.
- Global Acceptance and Contactless Payments:
- With acceptance at millions of outlets worldwide and the convenience of contactless payment technology, the card is versatile for both domestic and international use.
- Flexipay and Balance Transfer Options:
- The Flexipay facility allows cardholders to convert large purchases into easy monthly installments, while the balance transfer option provides an opportunity to manage debt at a lower interest rate.
- No Add-on Card Fees:
- Cardholders can issue add-on cards to family members without incurring additional fees, making it easier to manage family expenses under one account.
Cons
- Limited Reward Rate:
- The card offers 1 Reward Point per โน100 spent, which is relatively modest compared to other entry-level cards that may offer higher reward rates or more diverse redemption options.
- Annual Fee After 4 Years:
- After the first four years, the card charges an annual fee of โน499. While this fee is not high, it may be a consideration for those looking for a card with no long-term costs.
- Interest Rates:
- With an interest rate of 3.35% per month, the SBI Card Unnatiโs rates are competitive but still on the higher side compared to some secured cards that offer lower rates.
- Fixed Deposit Requirement:
- The necessity of maintaining a fixed deposit of at least โน25,000 can be a limitation for those who do not have sufficient savings or prefer unsecured credit options.
- Basic Features:
- The cardโs features are relatively basic, with limited perks beyond the core benefits. Those looking for more extensive rewards, travel benefits, or premium services might find the card lacking.
- No Premium Benefits:
- The card does not offer premium benefits such as airport lounge access, travel insurance, or concierge services, which might be available on other cards even at the entry-level.
SBI Credit Card Unnati Overview
| ๏ปฟFeature | Details |
|---|---|
| Type of Card | Secured Credit Card (against Fixed Deposit) |
| Annual Fee | Nil (First 4 years) |
| Joining Fee | Nil |
| Reward Rate | 1 Reward Point per โน100 spent |
| Renewal Fee | โน499 per annum (from 5th year onwards) |
Conclusion and Overall Rating
Theย SBI Card Unnatiย is a solid entry-level credit card tailored for individuals who are either new to credit or looking to rebuild their credit history. Its secured nature, backed by a fixed deposit, makes it accessible even to those with limited or no credit history, offering an excellent opportunity to establish a positive credit profile.
The cardโs primary strengths lie in its affordability, particularly with no annual fees for the first four years, and its straightforward benefits such as the basic rewards program, milestone cashback, and fuel surcharge waiver. The global acceptance and inclusion of contactless payment technology add to its usability, ensuring that cardholders can make secure and convenient transactions both in India and abroad.
However, the card does have limitations, particularly in terms of its modest rewards structure and the introduction of an annual fee after the initial four-year period. Additionally, the requirement to maintain a fixed deposit may not appeal to everyone, especially those looking for unsecured credit options. The cardโs features are basic, which may not satisfy users who seek more premium benefits or higher reward rates.
The SBI Card Unnati earns a strong rating for its role as a starter credit card with minimal fees and essential features. Itโs an ideal choice for individuals looking to establish or improve their credit history without incurring significant costs. However, it may not be the best option for those who want a more rewarding or feature-rich credit card experience.
