SBM Magnet Credit Card
The SBM Magnet Credit Card is a secured credit card issued by SBM Bank in partnership with Zetapp, designed especially for people who don’t have a credit history or income proof. To get started, you simply need to open a fixed deposit (FD) of Rs. 5,000 with SBM Bank through the Magnet mobile app. This card is backed by your FD, meaning your credit limit is usually a percentage of the amount you’ve deposited. Even while using the card, your deposit keeps earning interest, giving you the dual benefit of spending flexibility and savings growth.
What makes this card appealing is that it's lifetime free, with zero joining or annual fees. It’s available on Rupay, Visa, or any other card network selected by SBM Bank. You can use it just like any regular credit card, but with the added benefit of having no risk of falling into debt, as your FD acts as security. This makes it a smart choice for anyone looking to build or improve their credit score safely, especially for first-time credit card users or those with a low credit profile.
Rewards and Benefits
Fees & Charges
What should you consider before applying for a credit card in India?
Key Considerations Before Applying for a Credit Card in India:
- Eligibility Criteria: Ensure you meet the eligibility requirements, which typically include age, income, credit score, and employment status as defined by the issuing bank or financial institution.
- Credit Score: A strong credit score can significantly improve your chances of approval and result in more favorable terms, such as lower interest rates or higher credit limits. Verify that your credit score is healthy before applying.
- Interest Rates and Fees: Compare the annual percentage rates (APR), processing fees, late payment penalties, and foreign transaction charges associated with various cards. These costs can vary widely and impact the overall value of the card.
- Rewards and Benefits: Evaluate the rewards, cashback, discounts, or other perks offered by the card to ensure they align with your spending patterns. Some cards may provide better benefits in specific categories, such as travel, shopping, or dining.
- Credit Limit: Review the credit limit offered by the card to ensure it meets your financial needs. Avoid applying for cards with excessive limits if you are concerned about managing debt, as this can lead to higher interest charges.
- Repayment Terms: Understand the repayment structure, including the minimum payment amount, payment due dates, and any associated penalties. Being clear about these terms can help you manage payments effectively and avoid interest buildup.
- Card Type and Features: Choose a card type that matches your specific needs—whether standard, premium, or specialized cards like those offering travel rewards or dining privileges. Ensure the features of the card align with your lifestyle and spending habits.
- Bank’s Reputation: Opt for a financial institution with a proven reputation for customer service and transparency. Consider researching customer reviews and assessing their support channels to ensure reliable service.
- Hidden Charges: Be aware of any hidden fees, including annual fees, balance transfer charges, foreign transaction fees, or cash withdrawal charges. These can add up over time and affect the overall cost-effectiveness of the card.
- Credit Utilization: Maintain a balance within your credit limit to avoid high credit utilization ratios, which can negatively impact your credit score. Responsible use of credit is essential for maintaining financial health.
- Long-Term Financial Plans: Consider how the credit card fits into your overall financial strategy. Avoid accumulating unnecessary debt and choose a card that supports your long-term financial goals without adding financial strain.
What happens if I close my fixed deposit before maturity?
If you close your FD early, you’ll be charged ₹499, and your interest rate will drop by 1%, from 7% to 6%.
Can I use the SBM Magnet Credit Card for international transactions?
Yes, you can use it internationally. However, there is a 2.49% markup fee on transactions made in Indian currency abroad.
What is the minimum FD required for a Magnet Credit Card?
The minimum FD amount is ₹5,000.
Are there any cancellation charges for the Magnet Credit Card?
Yes, if you cancel the card within the first year, a ₹499 fee will be charged.
Does the SBM Magnet Credit Card offer rewards or cashback?
Yes, you can earn up to 10% rewards on purchases from top brands.
Can I make contactless payments with the Magnet Credit Card?
Yes, you can make contactless payments up to ₹5,000 without using a PIN.
What happens if I’m late in paying my credit card bill?
Late payments will have penalties and could affect your credit score. If the bill is unpaid for over 60 days, your FD will be used to settle the outstanding amount.
Is the ZET credit card safe?
Yes, the ZET app keeps your data secure and protects you from fraud.
What is the customer service number for the ZET Magnet FD Credit Card?
Call 1800 1033 817 or 1800 2099 335, or email customercare@sbmbank.co.in.
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