ZET, SBM Bank India launch FD-backed credit card

ZET, a credit score builder platform, and SBM Bank (India) Ltd Wednesday announced the launch of the SBM ZET Credit Card, an FD-backed credit card designed to help Indians build and maintain a credit score of more than 750.

Powered by the RuPay network, the SBM ZET Credit Card can be linked to any UPI app. Additionally, users can earn up to 7% p.a. interest on their fixed deposit with SBM Bank while utilising up to 90% of the deposit as their credit limit, ensuring a smart and rewarding financial experience.

Manish Shara, co-founder and CEO, ZET, said, “A good credit score is essential for accessing better financial products, yet millions of Indians are either new to credit or held back by a low score."

Unlike unsecured credit cards that require a strong credit score and income proof, the SBM ZET Credit Card has no such prerequisites. To get started, customers simply need to open a fixed deposit with SBM Bank, starting at just ₹5,000.

Customers can top up their fixed deposit anytime up to ₹5,00,000 through the ZET app. The fixed deposit is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the Reserve Bank of India, which provides deposit insurance of up to ₹5 lakh, per the press release.

In addition to earning interest on their fixed deposit, customers also enjoy rewards on in-app transactions such as voucher purchases across more than 80 brands, phone recharges, electricity bill payments, and more. ZET is also gearing up to introduce UPI-specific rewards, further enhancing the value of everyday spending.

With regular and responsible usage, customers can start seeing an improvement in their credit score in as few as 30 days. The SBM ZET Credit Card can be easily applied for through the ZET app, available on both Android and iOS, according to the press release.

According to a report by one of India’s major credit bureaus, over 160 million consumers were considered credit underserved, and about 50% of the population was credit unserved at the end of 2021. Credit underserved are individuals with minimal credit activity, typically limited to a single type of credit product and no more than two open accounts, active in the credit market for at least two years.

In contrast, the credit unserved are those with no credit history, making them "credit invisible" to lenders. This presents a vast opportunity to empower more individuals with financial inclusion. The SBM ZET Credit Card, which does not require an existing credit history, helps bridge this gap by providing a safe and reliable way for Indians to build and improve their credit score.