Signature Card

ALL ABOUT SIGNATURE CARD

A.    Signature Card:

A Signature Credit Card offers a line of credit that issued by various Banks and NBFI’s with easiest eligibility criteria along with attractive key features, which lets you borrow funds from a pre-approved limit can be used to make purchases, balance transfers and/or cash advances and requiring that you pay back the loan amount in the future.

 

The card is designed for high earner category consumers by offering best possible values on their every expenditure. It is one of the most prestigious credit card. It ensures you the maximum benefit and features by paying a minimal price for bank’s service. It is an unsecured product which is available without submitting any collateral for the same. Any Bangladeshi earning individual may avail this card facilities based on proofing his/her stable income source without submitting any other collateral. There are multiple numbers of Banks and NBFI’s of the country are offering this card facilities to their consumers once they meet their eligibility criteria.

 

B.    Purpose:

A Signature card can be avail for numerous purposes, such as:

-  Purchase of goods & services;

-  Purchase of consumer durables;

-  Urgent financial requirement;

-  Cashless transaction;

-  Domestic or foreign travel;

-  Other financial need;

 

C.    Benefits:

A Signature card offers various beneficiary features other than any other borrowing products of Bank and NBFI’s, such as:

-  No collateral required;

-  Cashless transaction;

-  Online transaction;

-  Interest free period;

-  0% interest facilities;

-  EMI facilities;

-  Reward points;

-  Cash back;

-  Priority pass;

-  Access to lounge;

-  Balance transfer;

-  Dual currency facilities;

-  Worldwide acceptance;

-  Insurance coverage;

-  Flexible repayment;

-  Quick processing time;

-  Minimum documentation;

 

D.    Some Basic & Common Features of Signature Card:

Now a days, various Bank and NBFI’s are offering most attractive features for the consumers, who wants to avail the Signature card facilities. Following are some basic and common features of Signature card offered by most of the Bank and NBFI, that need to be kept in mind:

 

       (a)   Who can avail?

              -    Any Bangladeshi earning individual with stable income source.

 

       (b)   Age Limit

              Most of the Bank and NBFI’s are referring following age limits for the consumers.

              -  Minimum Age         :  18 Years;

Maximum Age        :  70 Years;

 

       (c)   Professional Experience

Required professional experiences are varies based on consumer profession. Most of the Bank and NBFI’s are referring following professional experience limits for the consumers.

Salaried              :  Confirmed employee having minimum 6 months of work experience with current employer;

Professional       :  Having 1 years of professional experience;

Businessman      :  Minimum 1 years of business experience in same business;

Landlord             :  Duration of the building should be less than 20 years of old;

 

       (d)   Minimum Monthly Income

Required minimum monthly income level are varies based on consumer profession or source of income. Most of the Bank and NBFI’s are referring following minimum monthly income level for the consumers.

Salaried              : BDT 1,20,000

Professional       : BDT 1,50,000

Businessman      : BDT 2,00,000

Landlord             : BDT 2,00,000

 

       (e)   Interest Rates

Most of the Bank and NBFI’s are currently offering monthly 1.67% or below interest rate for Signature credit card.

 

       (f)    Charges and Fees Related to Signature Card

Apart from interest charges, some additional charges may also be applicable to a Signature credit card. Some of the most common charges & fees that should be kept in mind are as follows:

Annual fee;

Late payment fee;

Card cheque book fee;

Cheque processing fee;

Cash advance fee;

Card replacement fee;

Pin replacement fee;

Over limit charges;

Some other fees & charges;

 

       (g)   Credit Limit

              Most of the Bank and NBFI’s are offering following credit limits for the classic card consumers.

Minimum       :  BDT 7,00,000

Maximum      :  BDT 20,00,000

 

       (h)   Processing Time

-    Low processing time.

 

       (i)    Collateral

-    Signature card is an unsecured product. No collateral or cash securities is required.

 

       (j)    Repayment Mode

-    Flexible repayment polity through monthly minimum payments on outstanding balance.

 

E.    Factors Affecting on Signature Card Eligibility:

Signature card eligibility depends on many more factors. Most of the Bank and NBFI’s are considering following eligibility factors before approving any Signature card application.

Age;

Monthly net income level;

Current profession category;

Employment status (if salaried);

Professional experience;

Monthly expenses;

Other loan burden (if any);

Banking relationship;

 

F.    Things to Consider before Applying for a Signature Card:

Before applying for a Signature card, consumers should consider following things.

Annual fee;

Interest rate;

Interest free period;

0% interest facilities;

EMI facilities;

Reward points facilities;

Cash back facilities;

-  Dual currency facilities;

-  Worldwide acceptance;

Other fees & charges;

Insurance coverage;

Issuing time;

Required documents;

Compare all financers rates & features;

 

G.    How to Improve Your Chances of Availing a Signature Card:

As Signature credit card is mostly unsecured, lenders have a pre-decided set of rules (credit policies). Many applications get rejected as the borrower do not fulfil the basic set of rules of lenders for approval of the Signature credit card. Hence, the borrower works on improving his or her chances of availing a Signature card using some simple tips.

Maintain professional stability;

Maintain stable income source,

Maintain clean past loan records;

Identify options for bad credit loans;

Identify the right lender for you;

Avoid multiple credit cards;

Include all your sources of income;

Be honest and provide accurate information;

Provide all required documents as of lenders requirement;

 

H.    Required Documents:

To apply for Signature credit card there are various types of documents are required. Proper documentation the only possible way to avail the card facilities. Most of the Banks and NBFI’s are considering similar guidelines in respect to the documents required for Signature credit card. A generic list of such documents has been provided below:

Complete application form;

Proof of age;

Proof of identity;

Proof of income;

Proof of address;

Proof of nationality;

Proof of banking transaction;

Salary certificate (if salaried)

Certificate and profession proof (if professional);

Certificate and business existence proof (if businessman);

Land/building documents (if landlord);

Proof of stable income (if others);