SBI Card launches FD-backed credit cards on YONO: Who is eligibility? What does it offer? Check variants & other details

SBI Card has introduced a new secured credit card that can be applied for entirely online through its YONO app. This card is linked to a Fixed Deposit (FD) held with the bank, meaning your credit limit is determined by the amount of money you deposit. The application process is designed to be quick, allowing customers to get approved and start using the card within minutes. This product is specifically aimed at individuals who may have a limited or no credit history, such as young professionals or students, providing them with a structured way to establish a financial footprint.

For investors, this move is significant as it expands SBI Card's addressable market. By offering a secured option, the bank can tap into a segment of customers who are otherwise excluded from the formal credit system. This could lead to a gradual increase in the bank's customer base and potentially higher fee income over time. It also signals the company's focus on digital adoption and customer acquisition strategies.

What to watch next is the uptake of this new product category. Investors should monitor how many customers sign up for these secured cards and how they utilize them. If the cards are used responsibly to build credit, it could lead to higher spending volumes and cross-selling opportunities for the bank in the future.