Best Secured Credit Cards in India for Beginners (2026)

Published: 24 May 2026

Getting a credit card with no prior credit history can be a challenging task. A secured credit card in India can solve this problem if you have a fixed deposit with the bank. FDs act as collateral, making it easier for you to apply for and avail a credit card.

Today, there are so many trusted options to opt for a secured credit card for beginners with no income proof, collateral, or guarantor. In case you don’t know how to start, then this blog will break every single information you need to know about availing a secured credit card today.

What is a Secured Credit Card in India?

A secured credit card in India is issued against a fixed deposit (FD) with the bank. Because of this FD, your bank already holds your money as security, and hence, no income proof/credit history is required. This can make the process easier for students, freelancers, homemakers, and first-time job holders to avail a secured credit card for beginners in the most accessible way, unlike applying for regular credit cards, where rejections are common.

How FD-Backed Credit Cards Work

In case you are worried about how to have the best secured credit card for beginners in India, here are the steps you can follow:

Open a fixed deposit with your bank, and the amount can vary between ₹5,000 and ₹25,000, depending on the lender.
As a lien is placed on the FD, you cannot withdraw the amount while your card is active.
You will receive a credit card with a limit of 75%–90% of the FD amount. For example, if you have an FD of ₹20,000, you can have a credit limit of ₹15,000–₹18,000.
You can use this credit card for both offline and online transactions like a regular debit card.
You should pay the monthly bill on time, as this directly impacts your CIBIL score.
Simultaneously, your FD continues to earn interest as it’s not frozen or forfeited unless you default.
In case you miss any payment, your bank has the right to recover the same from your FD, and that is how this can be at the risk of ‘being in default’ option.

Benefits of a Secured Credit Card for Beginners

If you, as a first-time user, are searching for the best secured credit card in India, then the same will also work as a structured financial tool with several practical advantages:

Guaranteed Approval: Your FD works as collateral, and hence, regardless of your CIBIL score, your bank will approve.
No Income Proof Required: Freelancers, homemakers, and students can apply without salary slips or ITR.
FD Continues Earning Interest: Your deposit earns FD interest (typically 5%–7% p.a.) even while acting as collateral
Builds credit score: If you pay on time, your credit score will steadily improve over 12–18 months.
Works Like a Regular Card: You can use your card with ease for online, offline, UPI, and international transactions, depending on the card variant
Upgrade Path: Most banks offer an upgrade to an unsecured card after 12–18 months of responsible usage.
Spending Discipline: A credit limit tied to your FD naturally prevents overspending

Benefit	Practical Impact
No credit history needed	First-time users can apply immediately
FD earns interest simultaneously	No opportunity cost on locked funds
CIBIL reporting	Score improves with every on-time payment
Low minimum FD	Entry possible from as low as ₹5,000
Upgrade eligibility	Transition to unsecured cards within 12–18 months

Top Secured Credit Cards in India

Among the options of the the top 10 secured credit card in India in 2026, below are the five leading banks that are distinctive for beginners based on FD requirements, rewards, and fees. If you choose any of these, you can have guaranteed approval, CIBIL reporting, and a clear upgrade path to unsecured cards.

1. SBI Unnati Credit Card

This can be the best secured credit card for beginners requiring a minimum FD value of only ₹25,000 with no annual fees for the initial four years. You get one reward per ₹100 spent, and this is widely accepted throughout the country.

2. ICICI Bank Coral Credit Card against FD

This card requires a minimum FD value of just ₹20,000; however, it has an annual fee of ₹500, waived on ₹1.5 lakh annual spend. You get reward points for every single transaction alongside quarterly lounge access, thus adding lifestyle value at the entry level.

3. IDFC FIRST Bank FIRST WOW! Credit Card

This is a lifetime free secured credit card for beginners, requiring a minimum FD of ₹20,000 with no joining or annual fee. It offers up to 6.3% p.a. interest on the FD, 1% cashback on UPI spends, and personal accident insurance, thus making it a good choice for beginners.

4. Kotak Mahindra Bank- 811 Dream Different Credit Card

Kotak's 811 card is a lifetime free beginner secured credit card backed by an FD of value as low as ₹10,000, making it one of the lowest entry points among major bank secured cards. It offers 1% cashback on all spends and waives the annual fee permanently, with no hidden charges.

5. Axis Bank- Insta Easy Credit Card

Axis Bank's Insta Easy card requires a minimum FD of ₹15,000 and carries a low annual fee of ₹500. It offers 1% cashback on all retail spends, a fuel surcharge waiver, and is specifically designed for individuals with no prior credit history.

Below is a comparison table of the options of the best secured credit card in India:

Bank	Card Name	Min. FD	Annual Fee	Credit Limit	Key Benefit
SBI	Unnati	₹25,000	Nil (first 4 years)	80%–90% of FD	Wide acceptance, basic rewards
ICICI	Coral against FD	₹20,000	₹500 (waivable)	85% of FD	Lounge access, reward points
IDFC FIRST	FIRST WOW!	₹20,000	Lifetime free	100% of FD	6.3% FD interest, cashback on UPI
Kotak	811 #DreamDifferent	₹10,000	Lifetime free	90% of FD	Lowest FD entry, 1% cashback
Axis Bank	Insta Easy	₹15,000	₹500	80% of FD	Fuel waiver, no credit history needed

Eligibility Criteria for a Secured Credit Card in India

The secured credit card in India application process is very comprehensive, and almost every bank adheres to the same process. Here is a standard framework that most banks follow:

Factor	Requirement
Age	18 years and above
Nationality	Indian resident
Credit history	Not required
Income proof	Not required
Existing FD	Required by the applying bank
Credit card history	Should not hold an existing credit card (varies by bank)

Documents Required for a Secured Credit Card in India

The documents that you will need are mentioned in tabular format below:

Document Type	Accepted Proof
Identity proof	Aadhaar card, PAN card, Passport, Voter ID
Address proof	Aadhaar, utility bill, Passport
FD receipt	Issued by the bank at the time of deposit
Photograph	Recent passport-sized photograph

Secured vs Unsecured Credit Cards

Here are the key differences between a regular and a secured credit card:

Factor	Secured Credit Card	Regular (Unsecured) Credit Card
Approval basis	Fixed Deposit as collateral	Income proof + credit history
Credit history required	No	Yes (typically 750+ CIBIL)
Income proof required	No	Yes
Credit limit	75%–90% of the FD amount	Based on income and profile
FD interest	Continues to earn	Not applicable
Ideal for	First-time users, low/no credit score	Established credit users

How Secured Cards Help Improve CIBIL Score

Secured credit cards can help improve your CIBIL score by encouraging responsible credit usage and building a positive repayment history over time.

Builds Credit History: Regular usage and timely repayments help create a strong credit record.
Encourages Timely Payments: Paying dues on time every month positively impacts your CIBIL score.
Helps Maintain Low Credit Utilisation: Controlled spending against the credit limit can improve credit health.
Improves Repayment Behaviour: Consistent repayment habits demonstrate financial discipline to lenders.

Things to Consider Before Applying for a Secured Credit Card in India

Before choosing a secured credit card in India, you need to keep these factors in mind:

Factor	What to Check
Minimum FD amount	Choose a card that fits your prevailing savings.
Annual fee	Prefer lifetime free or low-fee options as a beginner.
Credit limit offered	Confirm whether it is 75%, 90%, or 100% of FD.
CIBIL reporting	Ensure the bank reports to credit bureaus monthly.
FD interest rate	A higher FD rate reduces the opportunity cost of locking funds.
Upgrade policy	Check if the bank offers an unsecured card upgrade after 12–18 months.
Premature FD penalty	Understand charges if you need to close the card early.

Conclusion

A secured credit card for beginners is one of the smartest ways to enter the formal credit system in India, with no income proof, no credit history, and no guarantor required. With the right card, disciplined usage, and on-time payments, most first-time users can build a strong CIBIL score within 12–18 months and transition to unsecured cards with higher limits and better rewards.

My Mudra makes this journey simpler. It brings together clear, well-researched information on the best secured credit card in India, eligibility criteria, and interest rates for thorough comparisons. Whether you are a student, freelancer, or first-time job holder evaluating your first card, My Mudra gives you the knowledge to make a confident, informed financial decision. Explore secured credit card options and take the first step towards building your credit profile today.

Also Read:
- Credit Card Eligibility for Salaried Employees in India (2026)
- How to Get a Credit Card for New Business (Step-by-Step Guide)

Frequently Asked Questions

What is a secured credit card in India? +

A secured starter credit card is issued against a Fixed Deposit placed with the bank, which acts as collateral in place of income proof or credit history. It works exactly like a regular credit card for online, offline, and UPI transactions.

Which is the best secured credit card for beginners? +

The best beginner secured credit card options in 2026 include the IDFC FIRST WOW!, Kotak 811 #DreamDifferent, and SBI Unnati, all offering low or zero annual fees with guaranteed FD-backed approval. The right choice depends on your available FD amount and preferred benefits.

How does an FD-backed credit card work? +

You open a Fixed Deposit with the bank, which places a lien on it as collateral, and issues a credit card with a limit of 75%–90% of the FD amount. Your FD continues earning interest throughout, and timely bill payments help build your CIBIL score steadily.

Can secured credit cards improve CIBIL score? +

Yes, banks report all repayment activity to CIBIL monthly, and consistent on-time payments can show measurable score improvement within 6–12 months. Keeping credit utilisation below 30% of the limit accelerates this process further.

What is the minimum FD amount required for a secured credit card? +

The best starter secured credit card options start with FD requirements as low as ₹10,000 at Kotak Mahindra Bank and ₹15,000 at Axis Bank, making them accessible for most first-time users. Minimum FD amounts vary across banks, so checking individual lender requirements before applying is advisable.

Are secured credit cards easier to get approved? +

Yes, since the FD acts as collateral, banks offer near-guaranteed approval for a secured credit card in India regardless of credit score or employment status. This makes them the most accessible credit product for students, homemakers, freelancers, and first-time job holders.

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