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Credit Card Loans

Loan against Credit Card - Different Banks

Last Updated 16th Apr 2021

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 Credit Card Loan

HDFC bank offers pre-approved loan on credit card against your credit card limit. 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 Credit Card Loan

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 Credit Card Loan

You can also apply for a loan against your credit card of 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 Credit Card Loan

IDBI Bank also offers credit card loan to the customers against their credit limit known as general credit card loan. 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 Credit Card Loan

IndusInd Bank offers loan facility to the credit card holders both against their credit card limits and above their credit card limits which is known as Loan Against Credit Limit” and “Loan above credit card limit respectively. 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 - Apr 2021
  • 2021-04-13 : Bank credit rise 5.56%; deposits 11.4% in FY21
    RBI reported that the Bank credit which includes retail loans like home, personal, business, car, two-wheeler, education and doctor loan along with business and mudra loans grew 5.56% to Rs 109.51 lakh crore in the financial year ending March 31, 2021. Further, the deposits include fixed and recurring deposits and rose 11.4% to Rs 151.13 lakh crore.
  • 2021-04-13 : Jan Dhan accounts witnessed unusual surge in total balance in March
    Pradhan Mantri Jan Dhan Yojana accounts winessed showing a significant increase in the month of March. There was an addition of ₹5,882 crore. The total balance of Jan Dhan accounts stood at ₹1,45,550 crore as on March 31, 2021 with 42.20 crore beneficiaries. In the beginning of the month, the total balance was only ₹1,39, 668 crore. PMJDY is a flagship financial schemes aiming financial inclusion.
  • 2021-04-13 : Jan Dhan accounts witnessed an unusual surge in total balance in March
    Pradhan Mantri Jan Dhan Yojana accounts witnessed showing a significant increase in the month of March. There was an addition of ₹5,882 crores. The total balance of Jan Dhan accounts stood at ₹1,45,550 crore as of March 31, 2021, with 42.20 crore beneficiaries. At the beginning of the month, the total balance was only ₹1,39, 668 crores. PMJDY is a flagship financial schemes aiming at financial inclusion.
  • 2021-04-13 : Bandhan Bank’s collection efficiency ratio at 96% in Q4
    Bandhan Bank reported an overall collection efficiency of 96% for the quarter ending March 2021. Total advances which include retail loans like home, personal, business, car, two-wheeler education and doctor loan along with business and mudra loans grew by 21% at ₹87,054 crores. Deposits which includes fixed and recurring deposits grew by 37% at ₹77,972 crores. Further, CASA deposits increased by 61 per cent at ₹33,827 crores.
  • 2021-04-07 : RBI announced Rs. 50,000-cr refinance to all-India financial institutions
    Reserve Bank of India announced that it will provide Rs. 50,000 crore refinance to all India financial institutions. The National Bank for Agriculture and Rural Development will get Rs. 25,000 crore, National Housing Bank Rs. 10,000 crore, and Small Industries Development Bank of India Rs. 15,000 crore.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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