Getting a credit card is often difficult for individuals with no credit history, a low CIBIL score, or unstable income. But what if you could get guaranteed approval by simply opening a fixed deposit? That’s precisely what Kotak FD Credit Card offers. By linking your Kotak Mahindra Bank Fixed Deposit with a credit card, you get instant approval, a decent credit limit, and a chance to build or repair your credit history. In this comprehensive guide, we’ll delve into every detail about the Kotak FD Credit Card, covering eligibility, benefits, charges, application process, and tips to maximize rewards.
What is a Kotak FD Credit Card?
A Kotak FD Credit Card is a secured credit card issued against your fixed deposit with Kotak Mahindra Bank. Instead of checking your income documents or credit score, the bank uses your FD as collateral. This makes it an excellent option for:
- Students and young professionals without a credit history
- People with low or bad CIBIL scores
- Self-employed individuals with irregular income
- Anyone looking to build or improve their credit score.
Your credit limit is usually a percentage (70–90%) of the FD amount.
Why Choose Kotak FD Credit Card?
There are many credit cards in India, but FD-backed cards like Kotak’s are unique because of:
- Guaranteed Approval: No income proof or CIBIL score needed.
- Credit Building: Perfect for people new to credit.
- Secure & Risk-Free: FD acts as security.
- Interest Earned on FD: Your fixed deposit continues to earn interest.
- Low Charges: Compared to premium cards, FD cards have lower joining fees.
Types of Kotak FD Credit Cards
Kotak offers different variants of FD-backed credit cards. The most popular include:
Kotak 811 Dream Different Credit Card
- A lifetime free card against FD.
- Minimum FD: ₹15,000.
- Cashback offers on online spending.
- Interest-free cash withdrawal up to 90% of the credit limit.
Kotak Aqua Gold Credit Card (FD-backed)
- FD as low as ₹25,000 required.
- 2 reward points on every ₹150 spent.
- Interest-free cash withdrawal.
- Fuel surcharge waiver.
Kotak Essentia Platinum Credit Card (FD-backed)
- Minimum FD: ₹30,000.
- 10% savings on grocery & departmental spends.
- Earn one reward point for every ₹250 spent on retail.
- Redeem points for movies, travel, or vouchers.
Features of Kotak FD Credit Card
- Eligibility: Anyone with an FD at Kotak Bank.
- Credit Limit: 70-90% of the value of the FD.
- Tenure: Till maturity of FD.
- Rewards: Cashback, reward points, or savings depending on the type of card.
- Interest-Free Period: Up to 48 days.
- Cash Withdrawal: Up to 90% of the credit limit.
- Security: The FD will be kept as collateral, which reduces the risk of the bank.
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Eligibility Criteria
- Must be an Indian resident.
- Age: 18–65 years.
- Active FD in Kotak Mahindra Bank.
- Minimum FD: ₹15,000 (varies by card type).
- KYC documents (Aadhaar, PAN, and address proof).
Documents Required
- Aadhaar Card
- PAN Card
- Address Proof (Driving License, Passport, Utility Bill)
- FD Receipt / Account details
Charges & Fees for Kotak FD Credit Card
| Fee Type | Charges |
|---|---|
| Joining Fee | Nil / depends on variant |
| Annual Fee | Lifetime Free (for FD cards) |
| Interest Rate | 3.5% per month (42% p.a.) if the bill is not paid |
| Cash Withdrawal Fee | ₹300 per transaction |
| Late Payment Fee | ₹100–₹700 depending on bill amount |
| Overlimit Fee | ₹500 |
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Benefits of Kotak FD Credit Card
1. Easy Approval
Even with a low CIBIL score, you can still get guaranteed approval.
2. Build Credit Score
Timely bill payments improve your score quickly.
3. Rewards & Cashback
Earn reward points, cashback, or discounts depending on card type.
4. Safe Usage
FD ensures the bank’s security, while you get the flexibility to spend.
5. Emergency Cash
Cash withdrawal option available when needed.
Drawbacks of Kotak FD Credit Card
- FD must be opened and maintained.
- The credit limit is lower compared to unsecured cards.
- Higher interest if you don’t pay bills on time.
- FD gets locked until card closure.
What Happens If You Don’t Pay Your Kotak Bank FD Credit Card Bill on Time?
Owning a credit card, especially a secured one like the Kotak Bank FD Credit Card, gives you the flexibility to shop, pay bills, and manage emergencies with ease. However, along with these benefits comes a big responsibility—timely repayment of your monthly credit card bill.
Many first-time users often ignore or delay payments, thinking it won’t matter much since the card is linked to a fixed deposit. But in reality, late or missed payments can have serious consequences. Let’s understand in detail what happens if you fail to pay your Kotak Bank FD Credit Card bill on time.
Negative Impact on Your CIBIL Score
Your credit card repayment history is one of the most critical factors that affect your CIBIL score. Even though the Kotak Bank FD Credit Card is backed by a fixed deposit, non-payment or delayed payment is reported to the credit bureau.
First Delay: A slight decrease in score, usually 30–50 points. Generally, the loss of information primarily concerns repeated delays that result in significant damage to your credit history. Defaulting can bring your score below 600, making it extremely difficult to obtain loans or other credit cards in the future. 👉A healthy CIBIL score of 750 and above spells approval for financial futures
Interest Charges and Late Payment Fees
If you don’t pay your full bill amount, the bank starts charging interest. For the Kotak Bank FD Credit Card, the interest can be as high as 3.5% per month (42% annually).
- Late Payment Fee: Ranges from ₹100 to ₹700 depending on bill size.
- Interest on Outstanding: Added every month until you clear the dues.
- No Grace Period: Once you miss a payment, even new purchases won’t enjoy the usual 45–48 days interest-free period.
This means a small purchase can quickly turn into an enormous debt.
Risk to Your Fixed Deposit
Since the Kotak Bank FD Credit Card is linked to your FD, Kotak Mahindra Bank has the right to liquidate (break) your FD if you fail to pay bills for a long time.
- The bank may adjust the outstanding dues directly from your FD.
- You may lose interest earnings if the FD is closed prematurely.
- In the worst cases, your FD can be entirely consumed to pay off credit card debt.
So, not paying bills can wipe out your savings, too.
Legal & Collection Consequences
If dues remain unpaid for more than 90 days, the account is treated as a Non-Performing Asset (NPA). Banks may:
- Send collection reminders.
- Report you as a defaulter to the credit bureaus.
- In extreme cases, take legal action.
Though rare for small dues, it can be mentally stressful.
Loss of Future Credit Opportunities
A single missed payment may not close doors, but repeated defaults surely will. With a poor repayment record on your Kotak Bank FD Credit Card:
- You may be denied unsecured credit cards.
- Loan applications (personal, car, or home loan) may get rejected.
- Even if you get approved, interest rates may be very high.
Banks always prefer customers with a clean repayment history.
Stress on Financial Health
Beyond financial penalties, non-payment creates mental stress. Continuous calls, reminders, and late fees can make you anxious. It also disrupts monthly budgeting as interest keeps adding to the dues.
How to Avoid These Problems
- Pay on Time: Always pay the full bill amount before the due date.
- Enable Auto-Debit: Link your savings account for automatic bill payment.
- Use Within Limit: Don’t spend more than 30–40% of your credit limit.
- Track Expenses: Use the Kotak mobile app or net banking to check usage.
- Emergency Plan: If unable to pay the full bill, at least pay the minimum due to avoid default.
Why Timely Payment is Crucial for Kotak FD Credit Card Users
Many people assume that since the Kotak Bank FD Credit Card is secured, missing payments won’t matter.
But this is a myth. In reality:
- Your FD may get liquidated.
- Your credit score will drop.
- You will lose the main benefit of using the card—building a strong credit history.
Remember, the real advantage of an FD-backed card is not just spending but building financial credibility for future loans and credit cards. If you miss payments, the purpose of this is defeated.
Final Note
While the Kotak Bank FD Credit Card can be a valuable asset for building your credit history, it should be used wisely. Missed payments will negatively impact your CIBIL score, leading to high-interest rates and potentially losing your FD. To really gain from it, you have to treat the bill every month as a mandatory cost, just like with rent or any other bill. Pay on time, keep utilization low, and witness the credit profile grow stronger with every passing month.
How to Apply for Kotak FD Credit Card
Step-by-Step Process
- Open an FD in Kotak Mahindra Bank (online or branch).
- Visit the Kotak Bank website or the nearest branch.
- Fill out the credit card application form.
- Provide FD details for lien marking.
- Submit KYC documents.
- Approval within 3–5 working days.
Premium Example of Kotak FD Credit Card
If you open an FD of ₹50,000, your credit limit may be ₹35,000–₹45,000.
👉 FD continues to earn 6–7% annual interest.
👉 You get credit card benefits while your FD grows.
Tips to Use Kotak FD Credit Card Smartly
- Always pay the full bill amount before the due date.
- Keep utilization under 30% of the limit.
- Don’t break your FD unless urgent.
- Use for regular expenses like groceries, fuel, or bills to build a score.
- Redeem reward points before expiry.
Kotak FD Credit Card vs Normal Credit Card
| Feature | FD Credit Card | Normal Credit Card |
|---|---|---|
| Approval | Guaranteed | Based on CIBIL/income |
| Credit Limit | Based on the FD amount | Based on the profile |
| Eligibility | Anyone with FD | Salaried/self-employed with documents |
| Security | FD lien | Unsecured |
| Best For | Beginners/low CIBIL | Established credit users |
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FAQs about Kotak FD Credit Card
Q1. What is the minimum FD required?
₹15,000 for 811 Dream Different Card, ₹25,000–₹30,000 for others.
Q2. Can I close my FD before card closure?
No, FD is lien-marked. Breaking it will automatically close the card.
Q3. Does it help build a credit score?
Yes, paying bills on time boosts your CIBIL score.
Q4. Is the Kotak FD Credit Card lifetime free?
Yes, most FD-backed cards are free for life.
Q5. Can students apply?
Yes, students above 18 years with an FD in Kotak can apply.
Final Thoughts
Kotak FD Credit Card is ideal for novices, students, or individuals with a low CIBIL score, making it one of the best tools to start using credit in the financial system. This option ensures approval, helps build a credit history, and allows your FD to earn interest. Credit, in the form of cashback, reward programs, or fuel waivers, is a very proactive and beneficial module of operation. So, if you are planning to work on reinforcing your financial identity, the first step you need to take is to acquire a Kotak FD Credit Card.
