IDFC First launches secured business credit card with zero forex mark up for entrepreneurs

MUMBAI: IDFC FIRST Bank has launched a Business Multiplier Credit Card aimed at entrepreneurs, positioning the product at the intersection of credit access, liquidity management and financial discipline, particularly for founders, freelancers and small business owners who often blur the line between personal and business spending.

The launch seeks to address a long-standing gap in the market where early-stage entrepreneurs rely on personal credit cards to fund operational expenses, as traditional business credit cards remain difficult to obtain. Banks typically require two to three years of profitable income tax returns, strong credit scores and extensive documentation, effectively excluding startups and newly registered SMEs from formal credit access.

The IDFC First Business Multiplier card is issued against a fixed deposit, making it a secured product. By linking the credit limit directly to the deposit, the bank removes underwriting risk and lowers the barrier to entry. This enables users to access a business credit line without requiring financial history or meeting profitability thresholds.

The card also stands out for its lower interest rate. While most credit cards in India charge between 3% and 4% per month on revolving balances, this card is priced at around 1% per month. Though revolving credit is typically discouraged, the lower rate offers a relatively cheaper option for managing short-term cash flow gaps, especially for businesses facing delayed receivables or cyclical expenses.

Another feature is zero forex markup, a benefit usually associated with premium credit cards that have high income requirements and annual fees. For businesses incurring international expenses on cloud services, SaaS subscriptions and digital advertising, the absence of forex charges could translate into tangible cost savings.

The card offers a 100% credit limit against the fixed deposit, compared to the 80–90% typically extended by most secured cards. Users can also scale up their limit instantly by opening additional fixed deposits, providing flexibility for higher spending needs without undergoing fresh underwriting.

Beyond credit access, the product encourages better financial discipline by enabling a clear separation between personal and business expenses. This can help streamline accounting, simplify tax filings and improve visibility into business spending, with features such as employee cards and consolidated statements supporting structured financial management.

Eligibility requirements are relatively simple, with a minimum fixed deposit of Rs 50,000 needed to avail the card. The annual fee is Rs 1,000, which can be waived on meeting specified spending thresholds.

Overall, the card functions as a hybrid financial tool, combining features of a secured credit builder, a working capital buffer and an expense management solution, offering bootstrapped entrepreneurs a more accessible entry point into formal business finance.

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