Credit Limit

Credit Limit

Your credit limit is the maximum amount your bank allows you to spend on your credit card at any given time. In India, credit limits typically range from ₹15,000 for entry-level cards to ₹20,00,000+ for super-premium cards.

How Banks Decide Your Limit

Indian banks consider several factors:

• Income: Higher income = higher limit. Most banks set limits at 2–3x your monthly salary
• CIBIL score: A score above 750 gets you better limits
• Existing relationship: FDs, savings accounts, and salary accounts with the same bank help
• Repayment history: Consistent full payments on existing cards signal lower risk

Credit Limit vs Available Credit

Your credit limit doesn’t change when you spend. But your available credit does. If your limit is ₹2,00,000 and you’ve spent ₹80,000, your available credit is ₹1,20,000. Once you pay, the available credit resets.

How to Get a Higher Credit Limit

1. Wait 6 months — most banks review limits automatically after 6 months of usage
2. Request it — call your bank or apply through net banking
3. Provide income proof — submit your latest ITR or salary slips showing higher income
4. Use the card regularly — banks increase limits for active users who pay on time

Important: Don’t chase a higher credit limit just because you can. A higher limit only helps if it improves your credit utilization ratio. Spending up to your limit is a sign of financial stress, not financial strength.