Follow Us On Google News

Niyo Global Credit Card Review x SBM – 4 Reasons To Avoid It

By - Pawan Khatri
Published On
September 9, 2023
Niyo Global Credit Card Review
Table of Contents

Introduction – Niyo Global Credit Card Review

Niyo Global has introduced a credit card in collaboration with SBM Bank. The way this Niyo Global SBM Credit Card functions is that the credit limit available to the cardholder is determined by the amount of fixed deposit they have made with SBM Bank.

In more elaborate words, Niyo Global SBM credit card is a Fixed Deposit secured credit card which used to have an annual maintenance fee of INR 500 but now it is waived off for the time being. It offers zero forex markup on POS and online transactions. It also offers cheap cash withdrawals at flat INR 300 + GST. There’s no lounge access on this card. If you feel like a you need a credit card which can also be used for cash withdrawals, you can go for this. Annual Interest rate of this card is 36%.

Niyo Global Credit Card

4 Reasons To Avoid Niyo Global SBM Credit Card

Despite this, there are several reasons why this may not be the most optimal choice for a forex card. In fact, Niyo Global itself offers a superior option in the form of a Debit Card through its partnership with Equitas Small Finance Bank. Additionally, even the Fi Debit Card, which is a competitor to Niyo Global, may be a better choice.

1. FD Secured Credit Card

The entire purpose of a credit card is for a financial institution to provide you with credit based on your credit score, which reflects your ability to repay the borrowed amount. However, if you are required to provide a fixed deposit as collateral for the credit card, then you are not actually being offered credit, but rather using your own money as security.

2. Closure of FDs

The way closure of these FDs work is that you cannot manage them separately. Once you have made an FD or more than one FD, the only way you can close it is by closing all FDs together and closing the credit card along with it. For example, if you have two FDs of INR 50,000 each hence a limit of INR 1,00,000 on your card but if you want to close one of the FD, you cannot do so. Even on renewal, the FDs will stay intact, only your interest shall be credited to your savings account, while the principal would still be locked.

3. Charges

This forex card is the most expensive in the lot of charges amongst the modern forex cards such as one from Niyo Itself i.e. Niyo Global Debit Card with Equitas Small Finance Bank and even the Fi Debit Card with Federal Bank. For example, international ATM withdrawal charges for SBM Credit is INR 300 + GST, while Equitas Debit is INR 110+ GST and Fi Debit is INR 100+ GST.

4. Trust Factor

The Niyo Global SBM Debit Card was suddenly stopped for any international transactions due to non-compliance with certain RBI regulations and to this date it is not working for international transactions. Imagine a card advertised and launched as a forex card suddenly becomes non-functional for international transactions, making it a classic loss of trust on the Bank. The question is would you want to risk your hard-earned money as fixed deposits for a credit card from the same bank.

You can watch an informative video on this credit card – Niyo Global Credit Card Review | Niyo Global Card Lounge Access | Niyo Global Credit Card 20% TCS – YouTube

Conclusion – Niyo Global Credit Card Benefits?

The Niyo Global Credit Card with SBM Bank may not be the best option for a forex card, as it has several drawbacks such as being an FD secured credit card, having limitations on closure of FDs, having higher charges than other modern forex cards, and having a trust issue due to past incidents. Therefore, you may want to consider other alternatives such as the Niyo Global Debit Card with Equitas Small Finance Bank or the Fi Debit Card with Federal Bank, which may offer better features and benefits for your international transactions

Niyo Global Credit Card By SBM
Niyo Global Credit Card SBM

In this credit card review, we list several reasons why Niyo Global Credit Card by SBM may not be the most optimal choice for a forex card.

Product Brand: Niyo

Editor's Rating:


  • zero forex markup


  • FD Secured Credit Card
  • Trust Issues due to SBM RBI Fiasco

FAQs - Frequently Asked Questions

What is Niyo Global Credit Card?

Niyo Global offers a credit card backed by SBM Bank. The card works in a way that the credit limit offered by the card is up to the amount secured by a fixed deposit made with SBM.

Are there any other options available?

Yes, there are other options available such as Niyo Global Debit Card with Equitas Small Finance Bank and even the Fi Debit Card with Federal Bank.

What are some reasons why I might not want to choose Niyo Global Credit Card?

Some reasons why you might not want to choose Niyo Global Credit Card include that it is an FD Secured Credit Card, there are limitations on closure of FDs, it has higher charges compared to other modern forex cards and there may be trust issues due to past incidents.

Are there any Niyo Credit Card Benefits?

Yes, there are several benefits of using Niyo Global Credit Card such as zero forex markup on all international transactions worldwide, saving up to 5% in forex markup with each use, and the ability to make online purchases from international merchants from right here in India.


Pawan Khatri
Pawan is the Founder @ Card Nitty. He's a law graduate from Hidayatullah National Law University. He's passionate about travelling, road trips, mountains, photography & music.


Leave your comment

Related Posts