Credit Card Loans

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 Rs. 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 Rs. 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 Rs. 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 Rs. 50,000 and the maximum amount of Rs. 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:

1. 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. 
2. You can repay your loan in easy installments with the help of different EMI schemes offered by your lender.
3. Few lenders also give you the option of taking a loan over your credit limit. 
4. 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 on Credit Card Loan