Step-by-Step Guide: How to Apply for a Credit Card Against Your FD
A credit card against a fixed deposit (FD) is a secured credit card where your FD acts as the security for the credit limit. This type of card can be a practical option for people who are new to credit or who want a card with a simpler approval route, since the bank has a deposit as collateral.
Unlike unsecured cards, the issuing bank typically marks a lien on the FD, meaning the deposit remains in your name but is reserved as security while the card is active. You can still earn FD interest as per the deposit terms, while also using the credit card for everyday payments within the approved limit.
Who Should Consider It
A credit card against an FD may suit you if you want to start building a credit history, prefer a more predictable approval process, or do not want to provide extensive income documentation. It can also help if you want a card for online payments, subscriptions, or routine monthly expenses while keeping spending within a defined limit.
Before you proceed to apply for credit card options against FD, confirm how the credit limit is calculated and what happens to the FD if the card is closed or remains unpaid. Banks may set the limit as a percentage of the FD value, and the exact percentage varies by issuer and product.
Basic Eligibility and Prerequisites
Most banks follow a few common requirements for secured cards. First, the applicant generally needs to meet the minimum age requirement and residency requirements as per the bank’s policy. Second, an FD must be opened in the applicant’s name with the issuing bank, because the card is issued against that deposit.
When considering the AU NOMO Credit Card, the eligibility includes being 18 years or older, being a Resident Indian, and having a fixed deposit in your own name with AU Small Finance Bank.
*Always verify the latest criteria on the bank’s official website, since product rules may change.
Information and Documents to Keep Ready
Having your details ready reduces delays during the RuPay credit card application and verification stages. Banks usually ask for identity and address proof, and sometimes income proof, even for secured cards, depending on internal policy and card variant.
| Item to prepare | What it is usually used for |
| Proof of identity | Confirms your identity during application and verification |
| Proof of address | Confirms your current residential address for compliance and delivery |
| Income proof (if requested) | Supports internal checks, card variant rules, or limit decisions |
| FD details with the issuing bank | Links the deposit to the card as security |
Step-by-step Process
The overall process is similar across banks, with minor differences in screens, document formats, and verification. If you are applying for the AU NOMO Credit Card against FD, the online process is typically described in the following indicative steps.
- Pick an AU credit card that matches your needs (in this case, the AU NOMO Credit Card Against FD).
- Click “Apply Now” on the official application page.
- Complete the online application form with personal, financial, and employment details as requested.
- Upload required documents such as identity proof, address proof, and income proof (if applicable).
- Review the application to ensure names, addresses, and contact details match your documents.
- Submit the application and note any reference or application number provided.
- Watch for a confirmation message or email and be available for verification steps.
- After approval, receive the card at your registered address.
- Activate the card using the instructions shared by the bank.
Wrapping Up
Treat a secured card like any other credit product. Pay the total amount due on time, keep utilisation moderate, and check statements regularly. Responsible use can help you build a stronger credit profile over time, while your FD continues as the underlying security.
