SBM Bank and Paisabazaar launched a new FD-backed credit card on June 25, 2026 — the Paisabazaar Paisa+ Card — aimed squarely at people with no credit history, a low CIBIL score, or a rejected application elsewhere. It's the newest entrant in a small but useful category: credit cards secured against a fixed deposit rather than your income or credit score. Here's exactly how the category works, how Paisa+ compares to the FD-backed cards banks already offer, and who should actually get one.
What an FD-backed credit card actually is
A secured credit card backed by a fixed deposit works differently from a normal credit card. Instead of the bank assessing your income and CIBIL score to decide your credit limit, you open (or already hold) a fixed deposit, and the bank issues a credit card with a limit set as a percentage of that FD — typically 80-100%. Your FD keeps earning interest exactly as it would otherwise; the bank simply holds a lien on it as security. If you default, the bank recovers dues from the FD rather than sending your account to a collections process. For a deeper explainer on how secured and unsecured cards differ more broadly, see our secured vs unsecured credit cards guide — this article goes one level deeper, comparing the specific FD-backed cards on the market today.
Because the bank's risk is capped by the FD, these cards approve applicants that a regular unsecured card would reject outright: students, new-to-credit graduates, gig workers without payslips, and anyone rebuilding a credit file after a default. Timely repayment on a secured card is reported to CIBIL and Experian exactly like any other card, which is the entire point — it's a credit-building tool, not a lesser product.
The newest entrant: SBM Paisabazaar Paisa+ Card
Launched on June 25, 2026, the Paisa+ Card is a co-branded product between SBM Bank India and Paisabazaar, and it undercuts every other FD-backed card on the minimum deposit required to get one.
| Feature | Paisa+ Card |
|---|---|
| Minimum FD required | ₹2,000 |
| Joining fee | Nil |
| Annual fee | Reported as nil by some sources, ₹499 from year two by others — confirm the current figure on Paisabazaar's product page before applying |
| FD interest earned | Up to 7% p.a. while the deposit is pledged |
| Cashback — online spends | 1.5% (FD above ₹10,000) / 1% (FD ₹2,000–₹10,000) |
| Cashback — offline spends | 1% |
| Cashback — UPI spends | 1% (on transactions above ₹2,000) |
| Cashback caps | 500 points/day, 3,000 points/month (1 point = ₹1) |
| Who it targets | New-to-credit consumers, students, young professionals, and anyone rebuilding a damaged credit profile |
The ₹2,000 minimum is the headline feature — most FD-backed cards from larger banks ask for ₹10,000-₹25,000 to even start. For someone with genuinely no spare capital to lock away, that gap matters more than the cashback rate.
UPI cashback only above ₹2,000 per transaction
Read the fine print on the UPI cashback: it applies only to transactions above ₹2,000, which rules out most day-to-day UPI spends (auto rides, chai, groceries under that threshold). If your spending is mostly small-ticket UPI, the effective cashback rate on your actual spending will be lower than the headline 1% suggests.
How Paisa+ compares to bank-issued FD-backed cards
The established players in this category — SBI, Kotak, and Axis — ask for a larger deposit but come from banks with a longer secured-card track record and, in some cases, a lower annual fee over time.
| Card | Min. FD | Joining / annual fee | Notable feature |
|---|---|---|---|
| SBM Paisabazaar Paisa+ | ₹2,000 | Nil / reported nil–₹499 | Lowest deposit entry point; FD interest up to 7% |
| SBI Card Unnati | ₹25,000 | Nil / Nil for first 4 years, then ₹499 | Backed by India's largest card issuer; long fee-free runway |
| Kotak 811 #DreamDifferent | ₹10,000 | Nil / Nil (lifetime free) | No annual fee at any point; fully digital onboarding |
| Axis Bank My Zone Easy | ₹15,000 | ₹500 / ₹500 | Reward points on everyday categories (dining, movies) |
If your goal is purely the lowest possible entry deposit, Paisa+ wins outright. If you'd rather have zero annual fee for life and don't mind locking ₹10,000, Kotak's 811 #DreamDifferent is the stronger long-term hold — it already has a real product-page listing on our Kotak 811 #DreamDifferent card page, where you can check current terms directly.
Kotak 811 #DreamDifferent Credit Card
annual fee
joining fee
reward rate
min income
Who should actually get an FD-backed card
- Students and first-time earners with no credit history — the fastest, most reliable way to open a CIBIL file if a parent add-on card isn't an option.
- Gig workers and freelancers who can't produce the salary slips a regular unsecured card asks for, but do have savings to park in an FD.
- Anyone rebuilding after a default or a low CIBIL score — a secured card reports to the bureaus exactly like an unsecured one, so 12-18 months of on-time payments genuinely moves your score.
- NRIs returning to India who need to rebuild an Indian credit file after years abroad, where their overseas credit history doesn't carry over.
It's a poor fit if you already qualify for a free unsecured card with better rewards — locking capital in an FD purely for a secured card's modest cashback rate is rarely worth it once your income and score clear a normal card's bar.
What you need to apply
Because the FD itself is the security, documentation for an FD-backed card is lighter than a regular unsecured application — there's no salary slip or Form 16 requirement at any of the four cards compared above. Expect to provide:
- PAN card — mandatory for any credit card in India, secured or not.
- Aadhaar or another address proof — for e-KYC, which most of these cards now complete fully online.
- A photograph — for the physical card and digital KYC record.
- The FD itself, or funds to open one — either an existing FD with the issuing bank pledged as collateral, or a fresh FD opened at application time specifically for the card.
Turnaround is typically fast precisely because there's no income underwriting involved — several of these cards, including Paisa+, advertise same-day or next-day approval once the FD and KYC are in place. If you're opening the FD purely to get the card, compare the FD's own interest rate against other tenures first; a secured card is only a good deal if the underlying deposit rate is competitive on its own terms, not just because it happens to unlock a card.
Key takeaways
- FD-backed cards set your credit limit against a pledged fixed deposit, not your income or CIBIL score — your FD keeps earning interest throughout.
- Paisa+'s ₹2,000 minimum FD is the lowest entry point in the category, well below SBI Unnati's ₹25,000 or Kotak 811's ₹10,000.
- Paisa+'s UPI cashback only applies above ₹2,000/transaction — check your real spending pattern against that threshold before counting on the headline rate.
- Timely repayment on a secured card reports to CIBIL/Experian exactly like an unsecured card — it's a genuine credit-building tool, not a lesser product.
- If you already qualify for a free unsecured card with stronger rewards, locking an FD for a secured card usually isn't worth it.
Frequently Asked Questions
Does an FD-backed credit card actually improve my CIBIL score?
Yes, provided you pay on time. The card issuer reports your payment history to CIBIL and Experian exactly as they would for an unsecured card — the "secured" label affects how the bank assesses risk, not how the bureaus record your repayment behaviour.
What happens to my FD if I close the credit card?
Once all outstanding dues are cleared, the lien on your FD is released and the deposit becomes freely withdrawable again, continuing to earn its original interest rate until maturity if you choose to keep it.
Can I get a credit limit higher than my FD amount?
Generally no — the limit is capped at a percentage of your FD (typically 80-100%), since the deposit is the bank's entire security for the card. If you need a higher limit, you'd need to increase the FD or graduate to an unsecured card once your credit history is established.
Is the Paisa+ card's annual fee really free, or ₹499 later?
Sources differ on this point, which is why it's flagged rather than stated as settled fact in this article — Paisabazaar's own listings and press coverage of the launch don't fully agree. Confirm the exact fee schedule on Paisabazaar's product page or the card's Key Fact Statement before applying.
Do I lose access to my FD money while the card is active?
The bank places a lien on the FD, meaning you can't withdraw or break it without first closing the card and clearing dues — but it continues earning interest as normal during that period.
How long should I keep a secured card before applying for an unsecured one?
There's no fixed rule, but most secured-card users see a meaningful CIBIL improvement after 12-18 months of on-time payments, at which point banks typically start offering unsecured card upgrades or you can apply independently with a stronger score.
EMI Calculator
Calculate your credit card EMI conversion
- Convert large purchases into easy EMIs
- Compare tenure options (3, 6, 9, 12 months)
- See total interest you'll pay upfront