What is the Maximum Credit Limit on a Credit Card in India?

Credit Cards have become an omnipresent financial tool today, offering the convenience of carrying out purchases without handling cash and providing access to a line of credit for emergencies or unexpected expenses. Like any other financial tool, Credit Cards come with their own set of risks and advantages. This makes it necessary for us to be aware of these risks and advantages to make informed decisions about their usage. Here, we will explore the potential credit card benefits and drawbacks and provide suggestions for using them responsibly.

What is the Maximum Credit Limit on a Credit Card in India?

First things first! Credit Cards must be used responsibly and well within your capacity. This is one of the reasons why Credit Cards come with a monthly spending limit in line with the Cardholder’s income, which is set by the issuer. Wonder what the Maximum Credit Limit is for a Credit Card in India? This is a key factor for shoppers to consider, along with Credit Card Interest Rates. Credit Limit is the amount that your Credit Card Company allows you to borrow each month. A higher Credit Limit can give you more room for funds, help carry out bigger purchases and pay them off. In this blog, we will explore the highest Credit Card Limit in India and how you can increase it with ICICI Bank Credit Cards. 

Maximum Credit Limit on Credit Cards in India

The Maximum Credit Limit on a Credit Card in India varies depending on several factors such as your Income, Credit Score and History. Usually, Banks and Credit Card issuers determine the Credit Limit based on your creditworthiness and ability to repay. The Reserve Bank of India (RBI) has not set any specific limit for Credit Cards but has put in place some guidelines for Banks and other Credit Card issuers to follow.

The Credit Limit for a Credit Card should not be more than twice the monthly income of an individual. Conversely, the issuing entity can set the limit based on the credit score and repayment history. Hence, it is essential to be financially capable, maintain a high credit score and have a good credit history to get a higher Credit Limit.

In terms of figures, the limit on Credit Cards in India can range from a few lakhs to crores of rupees. A high Credit Limit does not mean that you have to max out your Card. It is imperative you use it wisely and not overspend beyond your repayment capacity. 

Credit Card Interest Rates

The interest rate on a Credit Card is another significant factor when choosing a Credit Card in India. The Interest Rate is the amount charged by the Credit Card Company on the outstanding balance on your Card. Keep yourself updated on these rates if you are looking at high Monthly Credit Limits. Make sure you factor in all of these before making a decision.

Why should you consider increasing your Credit Card Limit?

Being a Credit Card user, you must understand its convenience, ease and benefits.

If you have had your Credit Card for a while and have moved up with respect to your financial capacity, consider increasing the Limit on your Credit Card and bring it up to a level that suits your lifestyle and spending habits. 

This has some benefits for you that can:

• Bring you more Rewards and Cashbacks: Credit Cards come with considerable Rewards, Cashback, Reward Points and other Incentives. With a higher Credit Limit, you will be entitled to higher Rewards and Benefits

• Improve your Credit Score: The biggest benefit of increasing your Credit Limit is its potential to improve your Credit Score which is calculated on certain parameters that include the Credit Utilisation Ratio

• Increase the credit available to you by increasing your Card’s Limit. This will help keep your Credit Utilisation Ratio low and improve your Credit Score

• Get greater purchasing power, more financial flexibility and the ability to meet unexpected expenses with an increased Credit Card Limit.

How to increase the Credit Limit with ICICI Bank Credit Cards?

As one of India’s most trusted private sector banks, ICICI Bank is pleased to offer a wide range of Credit Cards that cater to our customers’ unique needs and requirements, including Instant Credit Limit increase without any charges.

If you are an existing customer, you can do this in any of the following ways:

iMobile app

The iMobile app makes banking convenient and twice as easy for all our customers. Follow these steps to Increase your Credit Card Limit on your app: 

• Open iMobile App and select ‘Cards / Forex / PayLater
• Select the Credit Card for which you want to increase your Credit Limit
• Scroll on ‘Manage Card’
• Click on ‘Manage Credit Limit’ under ‘More options’
• Under ‘Set New Credit Limit’, enter the desired limit
• Click on ‘Submit’. Within a few seconds, you will receive confirmation of your Credit Limit increase through an SMS. What’s more! You can start using your Card with its increased limit instantly.

If you don’t have the app, download it from the App Store now or send an SMS to 5676766 to get a link

Send an SMS -- All you have to do is send an SMS CRLIM <last 4 digits of your Card> to 5676766. Your Credit Limit will be increased to the maximum based on your eligibility.

Internet Banking 

• Log in to your Internet Banking

• Click on ‘My Accounts’

• Click on ‘Credit Card’

• Scroll towards ‘Manage Credit Limit’ and hit ‘Go’

• Go to ‘Existing Credit Limit’ and the ‘Maximum Credit Limit’ option will present itself

• Key in the ‘Desired Credit Limit’

• Enter the OTP sent to your registered Mobile Number and click ‘Submit’. You will receive an instant confirmation SMS indicating your Credit Limit Increase. 

For guidance or queries, call us on 1800 1080 and a Customer Care Executive will help increase your Credit Limit.

Difference Between Total Credit & the Available Credit Limit

Total Credit Card limit is the maximum amount your Card allows you to spend. The available credit limit is what is left after your purchases. For example, if your total limit is ₹50,000 and you have spent ₹10,000, your available credit is ₹40,000. 

The Maximum Credit Limit on any Credit Card in India will depend on your Income, Credit Score and Credit History. ICICI Bank offers a wide range of Credit Cards catering to host of needs and requirements, with adequate Credit Limits that are in line with each customer’s finances.

FAQs

1. Why Does Credit Limit Matter?

The Credit limit is an important aspect of the Credit Card because it impacts your spending capacity. Try to stay within the Card limit to avoid over-limit charges. 

2. Does the Credit Limit get reset after Payment?

Yes, once you repay your Credit Card bill, your used credit becomes available again.