Apart from using your credit card for spending, or making purchases, you can also use it for availing a loan. Loan against credit cards can provide financial aid in difficult times. These unsecured loans, similar to same day cash loans, are provided to existing cardholders, without any requirement for additional documentation. In a scenario, where you have an urgent requirement for cash, you can also opt for cash withdrawals through your credit card. But the cash withdrawal facility is capped, and it can be possible that the withdrawal amount is insufficient to fund your immediate requirements. Alongside, the interest charges on cash withdrawal are high. When you compare the interest rates on cash withdrawals vis-a-vis the interest rates on credit card loans, the latter provides for lower interest rates. In a nutshell, credit card loans are easy, convenient, and economically viable.
To meet an unforeseen emergency the SBI provides four different types of loans on credit cards. These include balance transfer on EMI, Flexipay, Easy Money, and EnCash. Let’s have a look at the features and benefits of all SBI card loans :
1. Balance Transfer on EMI: This SBI Credit Card loan can allow you to transfer the high-rate credit card balance of other accounts to your SBI credit card account. This would allow you to reschedule your EMI payments at a lower rate of interest. This SBI card loan, however, is only provided to pre-approved, select cardholders, who are informed of this benefit via SMS or phone call. The approved loan amount can range from a minimum of Rs 5,000 to a maximum of 75% of the available credit limit. While the interest rate varies from one customer to another, the loan tenure is between 3 months and 6 months. You are not required to submit any additional documents for availing this loan. A processing fee of 1.5% or Rs 199, whichever is higher, is charged for this facility.
2. Flexipay: This type of SBI card loan can allow you to convert your purchases of more than Rs 2,500 into convenient installments. This benefit, however, is again provided only to pre-approved customers, as per SBIs internal policy. The loan tenure can range from 6 months to 24 months. For loan amounts above Rs 30,000, the tenure can be extended up to 36 months. The interest rate varies from one customer to another, and a processing fee of 2% of the converted loan amount, with a minimum of Rs 199 and a maximum of Rs 1,000 is charged.
3. Easy Money: This SBI credit card loan provides instant cash to enable you to meet your emergency requirements. If you are an existing cardholder, you can apply for this facility for a minimum amount of Rs 5,000 or a maximum of up to 75% of your available cash limit. While the loan tenure is 45 days, the rate of interest is 2.45% per month. A processing fee of 1.5% or Rs 199, whichever is higher, is also charged. No additional documentation is required to apply for a credit card loan. A key benefit of this personal loan on SBI credit card is the low-interest rates vis-a-vis other types of loans.
4. EnCash: Now you can get another personal loan on SBI credit card via EnCash. This loan-on-demand facility is available only to pre-approved customers, and all cardholders are not eligible for this loan. It does not require any additional documents or post-dated cheques. You can avail of a loan amount ranging from Rs 5,000 to a maximum of up to 75% of the available credit limit. The repayment tenure can be 12, 24, or 36 months. The rate of interest is as per the bank’s offer to individual customers. Alongside, a one-time processing fee of 2% of the loan amount - with a minimum of Rs 499 and a maximum of Rs 3,000 is levied.
Apart from Easy Money, all other SBI credit card loans can be booked/applied for only if you are among the pre-approved customers. There are multiple ways to apply for the loans:
1. Through SBIs Web Portal: Log in to sbicard.com using your SBI card online user ID and password. Click on the benefits section to check for pre-approved offers. In the case of Easy Money choose the option of booking the loan. Provide requisite details such as loan amount, tenure, and the applicable rate of interest. Then you are required to confirm the booking.
2. Through SBIs Mobile App: You must log in to the app by providing a user ID and password. Select the ‘Benefits’ option. Enter the requisite details, and complete the booking.
3. Through Helpline Number: You can make a phone call to the helpline number: 1860-180-1290, or 39020202 (prefix local STD code). After contacting the customer care executive, you can check for eligibility, and book the loan. Once your booking is confirmed, you will receive an SMS on your registered mobile number.
Modes of disbursal of SBI credit card loan: The loan amount is disbursed in your bank amount within 48-72 hours through the National Electronic Funds Transfer (NEFT) payment facility.
Repayment of SBI credit card loan: Once you avail of credit card loans, including a personal loan on SBI credit card, you will receive the minimum amount due in your monthly credit card statement. The statement will also show the billing of the EMI amount along with cess and tax.
Having an SBI card will not only provide you easy and convenient access to both online and offline shopping but also provide you with advantages such as credit card loans. If you haven’t applied for an SBI credit card yet, do make it a point to make an application today. You can choose Finserv MARKETS to apply online for SBI credit cards, and get access to a credit card packed with rewards and offers from your favorite brands.
Yes, as an existing cardholder, you can receive loans on your credit card, subject to fulfillment of eligibility conditions.
The interest rate varies as per the individual eligibility of cardholders. However, for SBI’s Easy Money loan scheme, the interest rate has been fixed as 2.45% per month.
Under the SBIs internal policy, the bank selects eligible customers from all types of credit cardholders. There is no one card that can entitle you to SBIcard loans.