Paisabazaar, India’s leading financial marketplace, has partnered with SBM Bank India to launch the SBM Paisabazaar Paisa+ Credit Card, a secured credit card backed by a fixed deposit. The card is designed specifically for consumers with limited or no credit history who struggle to get approved for regular unsecured credit cards. It offers a dual benefit of helping users build a credit profile while earning cashback on everyday spending.
What Is a Secured Credit Card?
A secured credit card, also called an FD-backed credit card, is a type of credit card that is issued against a fixed deposit held with the issuing bank. Unlike a regular unsecured credit card, which banks issue based on income proof and credit history, a secured card uses the depositor’s own money as collateral. This significantly reduces the risk for the bank and makes approval almost guaranteed, even for those with no prior credit history or a low credit score.
The credit limit on a secured card is typically linked to the fixed deposit amount, usually between 90% and 100% of the deposit value. While the FD remains locked as security, it continues to earn interest at the applicable rate. In case of default, the bank can recover the outstanding amount from the deposit. This structure makes secured cards a low-risk entry point into the formal credit system for first-time users.
Key Features of the SBM Paisabazaar Paisa+ Card
The SBM Paisabazaar Paisa+ Credit Card comes with a minimum FD requirement of just ₹2,000, making it one of the most accessible secured credit cards in the market. The fixed deposit earns interest of up to 7% per annum, so the user’s money continues to grow even while it serves as collateral.
The card offers cashback across multiple transaction categories:
| Transaction Type | Cashback Rate |
|---|---|
| Online purchases | Up to 1.5% |
| Offline purchases | 1% |
| Eligible UPI transactions | 1% |
For FD amounts above ₹10,000, users earn the higher 1.5% cashback on online spends. For deposits between ₹2,000 and ₹10,000, online cashback is 1%. Cashback is credited as Cash Points, where 1 point equals ₹1. There is a daily capping of 500 Cash Points and a monthly cap of 3,000 Cash Points. The card has zero joining fee and an annual fee of ₹499, which is waived on spending ₹50,000 or more in a year.
How the Card Helps Build Credit
The primary purpose of the Paisa+ Credit Card is credit building. When a user makes purchases using the card and pays the bills on time, this repayment behaviour is reported to credit bureaus such as CIBIL, Experian, and CRIF High Mark. Over time, a positive repayment history helps establish or improve the user’s credit score.
For someone with no prior credit history, using a secured card responsibly for 6 to 12 months can result in a credit score that qualifies them for unsecured credit products in the future. For those with a damaged credit score due to past defaults, the card offers a structured path to recovery. The key is disciplined usage keeping utilisation below 30% of the credit limit and paying the full outstanding amount before the due date each month.
The card also offers UPI linking capability, which allows users to earn cashback on everyday UPI payments while simultaneously building their credit history.
Who Can Benefit from This Card
The Paisa+ Credit Card is targeted at several categories of consumers who typically find it difficult to access formal credit. Students and young professionals who have just started earning and have no credit history can use this card to begin building a credit profile. Self-employed individuals and freelancers who lack formal income proof often get rejected for unsecured cards and can benefit from the FD-backed structure.
Individuals with low or damaged credit scores due to past repayment failures can use this card as a credit repair tool. Homemakers and others without a regular salary slip can also access a credit card through this route, as no income proof is required. The application process is fully digital, with KYC completed online and the card delivered to the user’s address.
The Credit Access Challenge in India
India has one of the lowest credit card penetration rates in the world, with only about 5% of the population holding a credit card. A major reason for this is the lack of a formal credit history for a large section of the population. According to industry estimates, over 160 million consumers in India are credit underserved, meaning they have minimal credit activity. About half the population is credit unserved, with no credit history at all, making them effectively invisible to lenders.
Traditional banks rely heavily on credit scores and income documents to approve credit cards. This excludes students, freelancers, small business owners, and gig workers who may have the ability to repay but lack the paperwork. Secured credit cards bridge this gap by offering a collateral-based alternative. They also help bring more people into the formal credit ecosystem, which benefits both consumers and lenders in the long run.
The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the Reserve Bank of India (RBI), insures fixed deposits up to ₹5 lakh per depositor per bank. This provides an additional layer of safety for users who open FDs to secure their credit cards.
About Paisabazaar and SBM Bank India
Paisabazaar is India’s largest digital credit marketplace, founded in 2014 and headquartered in Gurugram, Haryana. It is a wholly owned subsidiary of PB Fintech Limited, the same parent company that operates Policybazaar, India’s leading insurance comparison platform. Paisabazaar offers a wide range of financial products including personal loans, credit cards, home loans, and free credit score reports. It was India’s largest digital consumer credit marketplace with a 51.4% market share in terms of disbursals as of 2020. The platform’s current CEO is Santosh Agarwal, who took charge in March 2025.
SBM Bank (India) Limited is a scheduled commercial bank headquartered in Mumbai. It commenced operations in India on December 1, 2018, as the first foreign bank to receive a banking license from the RBI through the wholly owned subsidiary route. It is a step-down subsidiary of SBM Holdings Limited, a listed entity on the Mauritius Stock Exchange promoted by the Government of Mauritius. The bank’s Managing Director and CEO is Ashish Vijayakar. SBM Bank India operates over 17 branches across major Indian cities and serves more than 2 million customers. The bank has been actively partnering with fintech platforms to launch innovative credit products, including co-branded secured credit cards.
Key Takeaways
- The SBM Paisabazaar Paisa+ Credit Card is a secured credit card backed by a fixed deposit starting from just ₹2,000.
- Cardholders earn up to 1.5% cashback on online spends, 1% on offline spends, and 1% on eligible UPI transactions.
- The fixed deposit earns interest of up to 7% per annum, allowing users to earn returns while using the card.
- The card has a zero joining fee and an annual fee of ₹499, waived on annual spends of ₹50,000 or more.
- Paisabazaar was founded in 2014 and is a subsidiary of PB Fintech Limited, headquartered in Gurugram.
- SBM Bank India commenced operations on December 1, 2018, as the first bank to receive an RBI license through the wholly owned subsidiary route.
