Required Documents for Credit Cards in Bangladesh in 2022? Best Feature and Benefits of Credit Cards.

Nowadays Credit Cards have become a popular tool for purchasing, especially for increasing E-commerce as well as Online shopping. In addition to this, card-issuing banks are allowing their cardholders numerous facilities like different percentage discounts, and cashback facilities for purchasing goods from specific merchants for which people have to pay regular prices who don’t have credit cards. It makes life easier. One can buy products from home from one’s desired merchants with discounts. During this Covid-19 online shopping, various utility bills payment also getting popular using credit cards. Many people also bankers have different questions about credit cards, I think basic queries about credit cards in Bangladesh will cover-up in this article. Basic queries i.e. 

• Required Documents for Credit Cards.
• How can I qualify for a credit card?
• Credit cards interest the rate in Bangladesh.

Read Also: How do I Choose Between Visa Card and Mastercard?

What is Credit Card?

Credit Card permits cardholders to pay for purchasing goods and services physically or through digital market or E-commerce within the limits which are allowed by the Credit Card issuing Bank. Cardholders have to pay back the purchased amount along with charged interest and additional charges imposed by the bank after the billing period. Though every bank allows its customers interest free period of 15-45 days.

Types of Credit Card:

In our country mainly VISA, MASTER CARD, and AMERICAN EXPRESS channels are used for credit cards. But Banks is allowing its customer according to usage limit, feature, fees and charges various types of cards like,

A. Titanium Credit Card.

B. Visa Signature Credit Card.

C. Platinum Visa/MasterCard Credit Card.

D. Gold Visa/MasterCard Credit Card.

E. Visa Silver (Classic) Credit Card

F. Local Credit Card

G. American Express Card.

H. International Credit Card and so on.

Who can Apply for Credit Card?

Every Bangladeshi nationalist can apply for a Credit Card but every bank has set some precise criteria connected to occupation, income and age. You have to know about these criteria from your desired bank as well as from their official website. Bank divide their customer mainly into two segments i.e.;

1. Employed/ Salaried and

2. Self-employed/Businessman.

I’m here to talk about the required documents for Appling Credit Cards, its feature, interest rates and other facilities;

Required Documents for Credit Cards; for Employed/salaried individual:

Customer part: (Minimum salary for credit card Tk. 10,000/- (Gross Monthly Income)

1. National ID copy.
2. E-TIN Certificate
3. Valid Passport (if available). A passport is a must for dual currency activation.
4. Passport size photograph. (Number of Photograph decided by the Bank)
5. Photograph of the nominee along with his/her signature and also duly attested by the applicant.
6. Visiting Card/Office ID.
7. Latest Salary Certificate/Pay Slip from the employer.
8. Bank Statement of last 6 months which proves salary credited with certificate amount. (Statements period may vary bank to bank)
9. Reference of one or two colleagues of the applicant.

Bank Part:

1. Signed and completed Application Form by the customer.
2. Completed CIB form and Letter of Undertaking taken from the customer
3. Liability Certificate from the customer. (In that case, the bank does not allow credit cards who have liability from banks or non-bank financial institutions)

Documents required for Self-employed/Businessman:

Customer part:

1. National ID copy.
2. E-TIN Certificate
3. Valid Passport (if available). A passport is a must for dual currency activation.
4. Passport size photograph. (Number of Photograph decided by the Bank)
5. Photograph of the nominee along with his/her signature and also duly attested by the applicant.
6. Trade License with validity.
7. Business Card.
8. Bank Statement of last 12 months. (Statements period may vary bank to bank)
9. Partnership Deed on Government non-judicial stamp for Partnership business.
10. For limited Companies:
    a. Copy of Memorandum of Association
    b. Copy of Certificate of Incorporation
    c. Copy of Latest Schedule X and XII for Private Limited Company

11. Bangladesh Medical & Dental Council (BMDC) copy for Doctors.
12. Certificate for permission of Practice from the competent authority for Lawyers, Engineers and Consultants as applicable.
Bank Part:         

1. Signed and Duly filled up Application Form by the customer.
2. CIB form and Letter of Undertaking taken from the customer
3. Liability Certificate from the customer. (In that case, banks do not allow credit cards who have liability from banks or non-bank financial institutions).

Without Employed/ Salaried and Self-employed/Businessman sometimes banks allow those individuals who have cashable securities with banks like FDR, PPS, MFD and other deposit products. For them extra documents are required. These are:1. FDR, PPS, MFD and other deposit account opening forms.
2. FDR or other fixed deposit blocks.
3. Letter of lien and authority of Encashment of deposit account.

Credit Card Limit Calculation:

According to Bangladesh Bank circular, the banks can provide up to Tk 10 lac limit for credit cards, but it cannot exceed Tk 25 lakh. But each bank determines the limit of credit cards according to the demand of the applicant by considering their payback capacities, net worth, Monthly net income. It may also vary from bank to bank.

Credit card interest rate in Bangladesh:

From 01^st October 2020, Bangladesh Bank, The Central Bank of Bangladesh has set a ceiling of 20% of Credit Card interest rate. But banks are imposing their respective rates by introducing various card features. You can find the respective banks schedule of charges from their official website. Now the lowest interest rate is 18% practiced in various Banks.

Feature and Benefits of Credit Cards in Bangladesh:

A variety of offers is facilitated by banks to their customers. They always inform their customers through mail or SMS. Like;1. Discounts and cashback facilities from selected merchants.
2. Utility bill payment.
3. Fund transfer.
4. Purchase tickets for the journey.
5. Mobile or Internet bill payments.
6. Interest free period up to 50 days.
7. Exclusive offers on Dining.
8. Exclusive lounge access at Airports.
9. Some cards offer rewards points by redeeming points one can avail of stunning benefits.
10. Payment of freelancer or blogger and so on.

Use of Credit cards is increasing day by day because of its lavishing features. Banks are offering suitable offers for their customers according to the demand of time and they are modifying their terms and conditions to ease reaching all levels of customers. So, if you want to lead a hassle-free life, it becomes important to have a credit card for every person.

FAQs: