Minimum Salary Requirement for Credit Cards in India

Most banks require a minimum salary of Rs.20,000 to Rs.30,000 for an entry-level credit card. However, eligibility criteria, particularly minimum salary requirements, can vary across banks and card types. 

This article will look into the income thresholds and other factors influencing credit card eligibility in India to help you navigate your options effectively.

Importance of Income in Credit Card Eligibility

Income plays a critical role in determining credit card eligibility, as it is a direct indicator of an individual’s ability to manage and repay credit. Here’s why income is a key factor:

• Ensuring Financial Responsibility: A steady income reassures lenders that the cardholder has the means to repay the borrowed amount.

• Setting Credit Limits: An applicant's income level helps banks determine the credit limit for the card. Higher incomes typically result in higher credit limits, while lower incomes may result in lesser credit limits to minimize risk.

• Meeting Regulatory Requirements: Financial institutions are required to adhere to regulatory guidelines that mandate income verification

General Minimum Salary Requirements Across Banks

The minimum salary required to qualify for a credit card depends upon the issuers and card types. While there is no universal standard, most financial institutions set specific income thresholds. Let’s look at an overview of the general requirements:

Entry-Level Credit Cards

Many financial institutions require a minimum salary of Rs.15,000 to Rs.30,000 for standard credit cards. These cards are designed for individuals with moderate incomes and credit scores. These cards typically come with low joining and annual fees.

Premium Credit Cards

For premium, banks may require a higher income (Rs.50,000 and above) and credit score (750 and above). These cards offer premium benefits like unlimited airport lounge access, VIP services at airports, complimentary golf games, etc. 

Premium cards come with higher joining and annual fees ranging from Rs.10,000 to Rs.60,000.

Bank-Specific Requirements

The table below illustrates the bank-specific requirements for entry-level credit cards.

Choosing the right credit card starts with understanding the minimum salary requirements set by banks. By considering factors like secured cards for low-income earners and premium cards for higher salaries, you can find a credit card that meets your needs. Always review the terms and conditions, including fees and charges, to make an informed decision.