Suryoday Small Finance Bank launches credit card backed by FDs

Suryoday Small Finance Bank (SSFB) has introduced a secured credit card designed to enhance credit accessibility using fixed deposits as collateral. The bank's new offerings, the Suryoday SFB RuPay Select Credit Card and the Suryoday SFB RuPay Platinum Credit Card, provide options for customers to utilise their fixed deposits to secure credit. These cards, integrated with RuPay and UPI platforms, are available through instant virtual issuance, and offer 0.5% cashback on all transactions, capped at ₹3,000 per billing cycle, with no annual or hidden fees involved.

This product is primarily aimed at first-time credit users, homemakers, and retirees, encouraging responsible credit habits while increasing access to formal credit.

The secured credit card requires an initial fixed deposit starting at ₹1,000 for the Platinum variant and ₹1,11,500 for the Select variant. Customers can opt to pay as little as 10% of the outstanding balance before the due date or choose to clear the full amount within 30 days to avoid interest charges. Additionally, the card offers fixed deposit interest rates up to 8.40%, significantly higher than the 6.5%–7.5% generally provided by other small finance banks.

Industry data from May 2025 indicates that there are approximately 111 million credit cards in circulation in India, reflecting a growing but still relatively limited adoption rate. With these secured credit card offerings, Suryoday Small Finance Bank aims to tap into this expanding market by providing a reliable credit solution linked to customers' fixed deposit accounts.

The bank also includes RuPay-specific lifestyle, dining, and shopping offers, enhancing the cards' value proposition for users seeking integrated benefits and seamless digital payment options through platforms like BHIM or other UPI apps.