Paisabazaar launches Step Up Credit Card with SBM Bank India; Know how consumers will be benefited

Paisabazaar.com and SBM Bank India on Tuesday (June 22) launched the Step Up Credit Card – a credit builder product designed for consumers with limited access to formal credit, due to ineligible credit score.

The Step Up Credit Card, built in partnership with SBM Bank India, is the first product to be launched under Paisabazaar’s neo-lending strategy.

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A secured card provided against a fixed deposit (with SBM Bank India), Step Up Card will help consumers with damaged credit or those with no credit history to steadily build their Credit Score.

It will also allow them to enjoy the benefits of a credit card and earn strong returns on their fixed deposit.

Consumers can take the Step Up Credit Card on the Paisabazaar platform through a completely digital and paperless process, with instant issuance and activation.

Paisabazaar and SBM Bank India are also creating a program that would enable revisions in credit limit, based on consumer usage and behaviour through the Step Up Credit Card.

Segments who traditionally struggle to get a Credit Card due to employment type or geography, will also be able to use the Step Up Credit Card and get the benefits of a credit card.

Under its neo-lending strategy, Paisabazaar plans to co-create and introduce innovative products that would meet specific need gaps of varied consumer segments.

Neeraj Sinha, Head, Retail and Consumer Banking, SBM Bank India, said, “In India, the penetration of credit cards is low owing to lack of credit history and high delinquencies. We partnered with Paisabazaar to design a product that solved both these challenges – backed by a fixed deposit, it not only protects the quality of the assets but also helps build the credit score. We conducted a pilot program which witnessed great results and today we are launching the card for everyone.”

Gaurav Aggarwal, Senior Director, Paisabazaar.com, said, “Along with catering to the needs of underserved segments, ownership of processes and products would help us offer a great consumer experience. Also, data related to usage and behaviour would provide key insights and intelligence, enabling us to identify consumer needs more accurately, fostering further innovations.