Kotal Mahindra 811: Three reasons to consider this zero balance savings account

Description

1. Zero balance savings account that can be opened online. You instantly avail a bank account no. and virtual debit card. However in order to withdraw deposited cash, you need to visit branch physically with document proof.

2. Consumer durable loan offers with no upfront payment during festive times such as Christmas/New Year, Raksha Bandhan… You need to apply for a debit card (physical instead of existing virtual) that has a yearly charge of around 500 Rs. in order to avail such offers. You pay your first installment after one month.

3. With 811, it is relatively easy to apply for a Kotak credit card and get approved.

Obviously, your CIBIL score will be checked as well you need to submit income proof (IT return/salary slip). Yet in one case, an  individual was able to secure Kotal PVR credit card while unable to get approved through ICICI and Axis where too he maintains a savings (Axis) and current account (ICICI) but not maintaining Rs.10k minimum savings account/current account limit consistently. This zero balance 811 account is kind of a hack for such individuals desperately seeking a credit card. Since you have opted for a zero balance savings account, Kotak will infer that this is your secondary bank account. Being unaware of your low savings account/current account balance in your main bank, they will not raise a red flag.

In other words, if you have a savings/current account with say Axis Bank and not maintaining minimum balance (usually starts with 10k), they will most probably not approve. So a strategy you can pursue in case of not maintaining minimum savings/current account balance consistently is not to have a savings /current account (except zero balance)  with the bank you seek to apply for a new credit card.