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Credit Card Loans

Loan on Credit Card Comparison from Different Banks

Last Updated 15th Aug 2020

6th August 2020 – RBI keeps Repo Rate unchanged at 4%

Bank/ Card IssuerQuantum of LoanTenureInterest Rate
ICICI BankUp to ₹ 10 LakhUp to 5 yearsDepends on credit history & amount
HDFC BankWithin or above your credit limit12 to 60 monthsCompetitive
HSBC BankMinimum ₹ 2,000Multiple options to choose from15 to 21% p.a.
Standard Chartered BankUp to ₹ 5 Lakh12 to 60 monthsStarts from 1.17% per month
IndusInd BankDepends on credit limit6 to 36 monthsAs per schedule of charges

What is a Loan on Credit Card?

A loan taken against your credit card limit is known as a loan on credit card. To get a credit card loan, the cardholder should have an excellent credit history and a good repayment history. A credit card is one of the best options if you are in urgent need of cash as banks are ready to give you loans against your credit card. You have the option to take a loan against the credit limit available on your card. When your application gets approved by the bank, the limit will be credited to your account. You can repay the loan in installments at a specific interest rate offered by banks. 

Top Banks Offering Loan on Credit Card

Here are the top banks that offer a loan on credit card:

HDFC Bank: The bank offers a maximum loan of ₹ 5,00,000 that can be repaid with an interest of 1.25%. The loan is given to cardholders for tenure ranging up to 48 months or 4 years. There is no documentation needed as the loan is pre-approved and the amount is credited immediately to your account.

ICICI Bank: ICICI offers loan to selected ICICI Bank customers, depending on their repayment history and credit score. The maximum loan sanctioned by the bank is ₹ 10 Lakh and tenure for repayment of loan range from 6 months to 5 years. Once approved, the loan will be directly credit to your savings account.

Kotak Mahindra Bank: The maximum loan sanctioned by Kotak Bank is ₹ 5 Lakh with attractive interest rates. Tenure of the loan ranges from 6 months to 4 years. Customers with good credit score and repayment habits can get the loan without any hassle.

IDBI Bank: IDBI Bank offers a minimum loan amount of ₹ 50,000 and the maximum amount of ₹ 5 Lakh. The tenure range is a maximum of 5 years.

IndusInd Bank: With your IndusInd credit card, a pre-qualified loan is offered by the bank. The loan against credit cards comes at attractive interest rates and with flexible tenure options.

Features of Instant Loan on Credit Card

The main features of instant loan on credit card are mentioned below:

  • Since most of the banks offer pre-approved loans, you are not required to submit any extra documentation. This means your loan will get disbursed quickly. 
  • You can repay your loan in easy installments with the help of different EMI schemes offered by your lender.
  • Few lenders also give you the option of taking a loan over your credit limit. 
  • Some banks also offer loan against other lender’s credit card through Balance Transfer on EMI. In such a case, you can transfer the outstanding balance on other credit cards to one credit card and pay the EMI.

Credit Card Loans Eligibility Criteria

Since loans on credit cards are unsecured, which means you are not required to pledge any collateral to avail it. The loan is offered only to selected customers who have a credit card. Issuers have strict eligibility criteria such as: 

  • An excellent credit history
  • Good purchase and repayment pattern

Advantages of loan on Credit Card

  • Since a loan on credit card is pre-approved, it gets disbursed quickly without any hassle. 
  • You have the option to pay off your expensive purchases in easy monthly installments. 
  • Since credit card loans are pre-approved and unsecured, you are not required to submit any documents or collateral to get a loan.
  • No guarantor or post-dated cheques are required for credit card loans.

Personal Loan on Credit Card

Personal loan on credit card is taken by credit card holders to fulfill any personal requirement. This loan is given based on the spends, transaction pattern and repayment track record of the card holder. The maximum loan amount depends on your eligibility and can be given for a maximum tenure of 5 years. You can apply for a personal loan to get an instant approval and quick disbursal.

FAQs

Is it smart to get a loan to pay off credit cards?

Yes, it’s smart to get a loan to pay off outstanding amount on credit cards. Late payments can affect your credit score and you’ll have to pay high interest rate as well.

Can I get a loan on credit card?

Yes, you can get a loan on a credit card. But you’ll have to fulfill the eligibility criteria of your lender before applying for the loan.

How does a credit card loan work?

You can apply for credit card loans by visiting the website of your lender. When your application gets approved by the bank, the limit will be credited to your account. You can repay the loan in installments at a certain interest rate offered by banks.

Is it better to get a loan or a credit card?

If you can pay the outstanding amount on your credit card timely, you should opt for a credit card. Loans come at a higher interest rate, so it’s better to opt for a credit card. But make sure to pay the dues on time. Otherwise, you’ll have to pay a high amount as interest.

What are the eligibility criteria of credit card loans?

Credit card loans are pre-approved and unsecured loans and can be given to those who have an excellent credit history and have a good repayment pattern.

Can I get personal loan on credit card?

Yes, you can get a personal loan on your credit card if you have a good repayment record on your credit card bill payments.


Personal Loan News - Aug 2020
  • 2020-08-11 : Bank of Baroda reported a net loss of ₹864 cr in Q1 news
    Bank of Baroda posted a net loss of ₹864 crores for the three months to June, owing to higher provisions for loans. Net interest income backed by retail loans like home, personal, gold, car, two-wheeler and gold loans along with business and mudra loans increased 5% y-o-y to ₹6,816 crores in Q1 FY21. Further, The total advances grew 8.6% y-o-y to Rs. 7.36 trillion.
  • 2020-08-07 : DCB Bank Ltd posted Rs. 79.38 crore PAT in Q1FY21 news
    DCB Bank posted a net profit of Rs.79.38 crores for the period ended June 30, 2020, as against a net profit of Rs.68.76 crores for the period ended March 31, 2020. In addition to this, the Bank reported a total income of Rs.950.70 crores backed by retail loans like home, personal, gold, two-wheeler, and car loans along with business and mudra loans during the period ended June 30, 2020.
  • 2020-08-06 : SBI reports Q1FY21 net profit of Rs. 4776.50 crore news
    State Bank of India reported a net profit of Rs.4776.50 crores for the period ended June 30, 2020, as against a net profit of Rs.6909.95 crores for the period ended March 31, 2020. The Bank posted a total income of Rs.87984.33 crores backed by retail loans like home, personal, car, two-wheeler, and gold loan along with the business and mudra loans. Further, the bank total deposits which include FD, RD, current and savings account grew at 15.96 per cent YoY.
  • 2020-08-04 : UCO Bank reports Rs. 21.46 crore PAT in Q1 news
    UCO Bank posted a net profit of Rs.21.46 crores for the period ended June 30, 2020, as against a net profit of Rs.16.78 crores for the period ended March 31, 2020. The bank reported total income aided by retail loans like home, personal, car, two-wheeler and gold loans along with business and mudra loans of Rs.4436.57 crores during the period ended June 30, 2020. In addition to this, total deposits which include FD, RD, current and savings accounts increased by 1.4% to Rs 1,95,119.60 crore.
  • 2020-08-03 : Dhanlaxmi Bank Ltd Q1FY21 net profit at Rs. 6.09 crore news
    Dhan Laxmi posted a net profit of Rs.6.09 crores for the period ended June 30, 2020, as against a net profit of Rs.2.60 crores for the period ended March 31, 2020. In addition to this, The bank reported a total income bolstered by retail loans home, personal, car, two-wheeler and gold loans along with business and mudra loans of Rs.278.62 crores during the period ended June 30, 2020. Bank provisioning for bad loans and contingencies spiked to Rs 37.02 crore during the reported quarter of FY21 as against Rs 9.27 crore a year ago.
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