New secured credit card aims to help first-time borrowers build credit history while earning cashback rewards
India's fast-growing digital lending ecosystem has taken another step toward financial inclusion with Paisabazaar and SBM Bank India jointly launching the 'Paisa+' Secured Credit Card, a product specifically designed for consumers with limited or no credit history.
The new credit card seeks to address a longstanding challenge in India's retail lending market—providing access to formal credit for millions of first-time borrowers who often struggle to qualify for conventional credit products due to the absence of a credit score.
Bridging India's Credit Inclusion Gap
A significant proportion of India's adult population remains outside the formal credit ecosystem. Despite rising financial literacy and digital adoption, many young professionals, students, gig workers, and self-employed individuals face hurdles in obtaining unsecured loans and credit cards.
The Paisa+ Secured Credit Card aims to bridge this gap by enabling customers to build a credit profile through responsible usage and timely repayments. Since the card is backed by a fixed deposit, the risk for lenders is considerably reduced, making credit accessible to a broader customer base.
Cashback Rewards Add Value Proposition
Beyond credit-building benefits, the Paisa+ card also offers cashback on eligible transactions, providing users with an additional incentive to adopt digital payments and maintain regular card usage.
Industry experts believe that combining rewards with credit-building features could significantly improve customer engagement, particularly among younger consumers who increasingly prefer digital-first financial products.
Growing Demand for Secured Credit Products
The launch comes at a time when India's secured credit card segment is witnessing robust growth. Fintech platforms and banks are increasingly introducing products targeted at new-to-credit customers as they seek to deepen penetration in underserved markets.
With rising awareness regarding credit scores and their importance in obtaining future financial products such as home loans, auto loans, and personal loans, secured cards are emerging as an effective entry point into the formal financial system.
Fintech-Bank Partnerships Gain Momentum
Collaborations between fintech companies and traditional banks have accelerated in recent years, enabling innovative financial products to reach a wider audience. While fintech firms bring technology capabilities and customer reach, banking partners provide regulatory expertise and lending infrastructure.
The partnership between Paisabazaar and SBM Bank India reflects this evolving trend and underscores the growing focus on expanding access to responsible credit across India.
Outlook
As India's consumer credit market continues to expand, products catering to first-time borrowers are expected to play a crucial role in improving financial inclusion. Industry analysts expect secured credit cards to witness sustained growth over the coming years, supported by increasing digital adoption and growing awareness about the importance of maintaining a healthy credit history.