ZET App has launched ‘Magnet’, an innovative secured credit card designed to help individuals build or improve their credit scores. This new offering combines the benefits of a fixed deposit (FD) with a credit card, providing a unique solution for those struggling with their CIBIL scores.
ZET App’s introduction of Magnet comes at a time when nearly 200 million Indians have low CIBIL scores or are new to credit. By offering instant approval and a streamlined application process, Magnet aims to bridge the credit gap and foster financial inclusion in India.
Magnet is issued in partnership with SBM Bank, it is specifically tailored for New-to-Credit (NTC) customers and those with poor credit history. The card is backed by a fixed deposit ranging from Rs 5,000 to Rs 25,000, with 90 per cent of the deposited amount serving as the credit limit.
One of the key features of Magnet is its accessibility. Unlike traditional credit cards that rely heavily on existing credit scores, Magnet is available to individuals with no credit history, making it an inclusive financial product. The card comes with no annual or renewal fees, further enhancing its affordability.
In addition to building credit, Magnet allows users to earn up to seven per cent interest on their fixed deposits. The FD is secured as per RBI guidelines and insured up to Rs 5 lakhs by deposit insurance and credit guarantee corporation, providing an added layer of financial security.
“Secured credit cards can be a valuable tool for building or rebuilding a credit profile while enjoying the benefits of FD,” said Manish Shara, Co-Founder and CEO of ZET.
The card also offers attractive features to its users, including joining benefits worth Rs 21,000. These benefits include 10 per cent rewards on top brand vouchers, OTT subscriptions to popular platforms like Disney Hotstar, Sonyliv, and Zee 5, as well as offers on dining and travel.
Experts suggest as the fintech landscape continues to evolve, products like Magnet represent a step towards empowering individuals with greater financial independence and flexibility. For those looking to build a healthy CIBIL score, Magnet by ZET App could be a promising solution in their journey towards better credit health.
First Published: Jul 30 2024 | 8:17 PM IST
