Loan on credit card is offered on specific credit cards and is linked to the card limit. There are certain terms and conditions for getting a credit card loan. Credit cards that come with a loan feature prove extremely convenient when you are in urgent need of funds.
You can apply online for a credit card loan only if your card is registered for net banking.
To register your card, log into net banking and follow the steps given below
Click on the cards tab
Select the ‘Transact’ menu on the left
Select ‘Register New Card’
Fill in the details and click ‘Submit’.
If you want to apply offline for a loan against a credit card, visit your nearest bank branch.
Only basic documentation is required
Easy-to-fulfil eligibility criteria
Emergency access to cash
A credit card loan is offered to select cardholders only. To be eligible for the credit card loan facility, you would need to have a stellar credit history, a good credit score, and a consistent, reliable spending and repayment pattern. If you are regular with your credit card bill payments and do not carry over any outstanding dues, the chances of you securing a loan against your credit card will be higher.
Voter ID Card
Last two months’ bank statement
Income Tax Return statement
Tenth standard school certificate
Voter ID card
PAN card photocopy
Form 60 (in case you do not hold a PAN)
If you want to get a personal loan on a credit card, then you should have a good payment history, transaction pattern and also, a good track record with respect to your credit card spending.
Log in to your internet banking account or mobile app and make your application in the credit card section.
Call customer care
The fund transfer to the customer's account usually takes place within 3-4 working days. In case a customer opts for a demand draft mode of transfer, the demand draft delivery can be expected within 7 working days.
Yes, many banks offer instant loans on credit cards and immediately transfer the funds to your bank account.
Yes, interest will be charged on a credit card loan.
Yes, a CC loan is different from a credit card cash withdrawal. The cash withdrawal limit on credit cards is lower than the amount that can be borrowed as a loan. Also, the interest rate on CC loans is lower than the interest applicable in the case of a cash withdrawal using a credit card.
Different banks have their own caps with regards to loans on credit cards. Some of these amounts are mentioned below:
HDFC Bank: Maximum loan amount of ₹5 Lakhs
IDBI Bank: Minimum loan amount of Rs. 50,000. Maximum loan amount of ₹5 Lakhs
Kotak Mahindra Bank: Maximum loan amount of ₹5 Lakhs
Loan against credit card is an excellent option for those who need immediate cash to deal with an urgent and unpredictable personal situation.