Bengaluru-based consumer credit startup slice unveiled a card that offers a credit limit from Rs 2,000 ($27) onwards, to capture 200 million Indians who struggle with online transactions.
The card is free and comes with similar benefits as any other credit card, irrespective of the limit. The product hopes to help new-to-credit users build their credit scores.
Credit cards usually start at an average credit limit of Rs 20,000, and those with higher limits fall under the ‘premium customers’ category, which comes with a host of benefits such as travel points, cashback and lower interest rates versus others.
‘s credit products have grown 50%, month over month, and its non-performing assets are less than 2%, it said.
A user will be able to get a higher credit limit by properly utilizing the issued limit and repaying dues on time. The company won’t charge a joining or annual fee on its new offering and will provide the same benefits available on its existing product ‘super card’, which is also Slice’s key offering. Slice aims to help users with no credit history to build a healthy credit score through its new card offering. The company claims to issue as many as one lakh super cards every month.
Credit products have seen an uptick in the number of takers over the past few months, especially since the pandemic began a year ago. Consumers, who have become comfortable using online payments and financial services have been asking for digital-first loans and small credit solutions, which has given rise to products such as online loan platforms, and BNPL loans.
BNPL is said to be a category disrupter in India, mostly because of the sachet-sized loans offered, which works much like a credit card. However, credit card approval rates are low in India. Only 3% of the population – or 30 million people – today have credit cards, according to slice, even though there are at least 10X creditworthy Indians in the country.
The fintech startup has raised about $83.8m in debt and equity since its launch.
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