How to Take Loan On Credit Card: Loan On Credit Card is the easiest way to get a quick loan on Credit Card. When you are facing shortage of cash and need urgent funds for any unforeseen or planned situation then you may use your credit to get a Loan On Credit Card. But the question is why you will apply for a credit card loan while you already have your credit card with a good spending limit.
We will guide you through with all good reasons to get a quick loan with loan on credit card facility provided by your bank. First we need to understand that a loan on credit card is different from other forms of loans provided by your bank.
You must have heard about personal loans, payday loans, and urgent cash loans. And all these loan types have their own pros and cons. You may get all these loans from any different lenders and online instant loan apps. But to get a loan on credit card the basic criteria is you must own a credit card of any bank. You must own a credit card of the bank with whom you want to apply for credit card loans.
Nowadays almost all reputed national and private banks do offer credit cards for all types of persons. Whether you are a salaried person or you are a small business owner or you are a retired person.
If you hold a savings account and you are a salaried employee or you are running a small business, or if you are a retired person and have a fixed deposit in your bank or your savings account has sufficient funds then chances are you must be holding a credit card of the same bank. Let’s discover more about it and explore how to get a quick loan with loan on credit card from your credit card provider bank.
What Is Loan On Credit Card?
Loan on credit card is a loan offered by your credit card company against your credit card spending limits which is also called credit limit. This is an unsecured personal loan offered by a bank. Which allows you to apply and disburse the loan amount in your bank account instantly. You may disburse the amount very quickly by just one tap, or one SMS, or one call. Almost within a few seconds to a few minutes such as 5 to 10 minutes.
How to Take Loan On Credit Card and How To Apply It?
To take a loan on a credit card you don’t need to invest much time and effort. There are few simple steps you can take.
- The best and easiest way to take out a loan on credit card is login to your bank’s mobile app. Then go inside the credit card section. Then check if there is any options available mentioning pre approved loan or pre approved loan offers. Depending on the bank technical language may vary but you get the idea. And then you may follow your bank app’s onscreen instructions.
- Second option to opt for a loan on credit is to simply SMS to your bank. The SMS number to opt credit card loan is given on your bank’s website.
- Third option to opt for a loan on credit is to simply Whatsapp or email to your bank’s relationship manager and then they will guide you with all the requisites and assist you to get it quickly disbursed in your bank account.
- The fourth and most convenient option is to call your bank’s phone banking number and talk with the phone banking officer and they will get the job done for you quickly.
How to Take Loan On Credit Card FAQs
How Much Money You Can Take As A Loan On Credit Card?
The loan amount will vary depending on your credit limit provided by the bank. Usually banks offer credit card loans to their customers one third of the total credit limit. For instance your credit card credit limit is US Dollar 12000 then the bank may offer you US Dollar 4000 as a loan against your credit card.
What Are The Documents Required For Loan On Credit Card?
There are no documents required to avail a loan on credit cards. The reason you don’t need to provide any document is because the bank already has all the required documents. Such as your residence proof, your PAN card, your income proof etc. So this is zero documentation loan.
Loan On Credit Card Eligibility
You are eligible for loan on credit card if you fulfill the following criteria.Normally banks offer loan on credit card to new and existing customers but depending on the banks internal policy some banks prefer to offer loan against credit card or loan on credit card to their existing customers only.
To get a loan on a credit card you must be a credit card user, you must have a credit card of any bank you desire to apply for the credit card loan. To get a loan on credit card you need to have a good credit history and repayment records. Banks prefer to offer credit card loans to customers who have a good repayment record, good credit standing and good credit history.
What Are the Rates Of Interest On Loan On Credit Card?
In almost all banks the rate of interest starts with minimum 12% and goes higher up to 35% depending on your repayment history. Your relationship with the bank and your CIBIL credit scores. So bank to bank and depending on your loan amount and tenure for the loan interest rates may be lower or higher.
How Do Loans Work on Credit Cards?
The logic behind credit card loans is very simple and straightforward. Banks do check their credit card customers’ spending behavior. They do check the customer’s repayment history. Then banks check customers’ repayment capabilities by their annual income. And then the bank pre-approved customers for loans on credit cards. These kinds of loans are mostly pre-approved personal loans against credit cards. That is why there are no documents required for loan and instant loan on credit card which takes just a few seconds to a few minutes to disburse.
What is Minimum And Max Tenure for Loan?
Depending on the bank’s policy you may apply for a loan on credit card for minimum 3 months to max 4 years.
Do Banks Charge Processing Fees for Loan On Credit Cards?
Yes, banks do charge a very small amount as processing fee.
Can I Repay the Whole Loan Amount At Once?
Yes, you may easily repay the whole loan amount at once by paying a few percent of interest on the remaining balance amount. The interest amount will vary depending on the bank’s internal policy.
What Happens If I Don’t Repay The Loan?
Well, whether it is a loan on credit card or any type of loan you are bound to repay the loan amount to the lender. And for any reason if you fail to repay then you are inviting legal consequences against you and you are risking your credit scores. The consequences may cost you heavily and damage your reputation, credit score, and can put you in legal trouble. So never ever think about it, no matter what.
What is a Credit Limit?
Credit limit refers to the maximum amount you could spend by using your credit card. This credit limit is determined by your bank based on your income, credit score, repayment history, previous years record, and relationship with the bank. Maintaining a good repayment history is a must for credit card users because defaults and late payments may force your credit card company to revise your credit limit and downgrade it.
What is a Loan on Credit Card?
Loan on credit card is an unsecured personal loan which you can take with the help of your credit card provider. A credit card loan is the quickest way to get instant cash and resolve your urgent financial needs.
Do You Need To Have A Good Credit History To Apply For A Loan On Credit Card?
Yes, definitely. It is very important to maintain good credit records. It helps you get your loan application approved quickly with the lowest possible rate of interest.
Do You Need To Pay Any Additional Charges or Processing Fees for Loan On Credit Card?
Yes, Bank or your credit card company charges a very small amount as processing fee during disbursement.
What Are The Documents Required For The Loan On Credit Card?
There are no additional documents required to apply for a loan on credit card since your credit card company or bank already have all the documents with them when you had applied for the credit card.
How Can I Apply For Loan On Credit Card?
You may apply for a loan on credit card online through your bank’s mobile application, you may apply online by logging into your bank’s internet banking, you may apply by simply making a phone call to the bank’s customer care number, or you may WhatsApp or email to your accounts relationship manager.
Can New Customers Apply For A Loan On Credit Card?
Ans: Well, the answer to this question is yes and no both. Because depending on the bank’s internal policy some banks allow new customers to apply for a loan on credit card and some banks or credit card companies do not allow new customers to apply for a loan on credit card. Whatever is the bank’s policy, having a credit card is mandatory to apply for a loan on a credit card.
What Is The Difference Between Interest Rates Charged on Cash Withdrawals On Credit Card and a Loan On Credit Card?
The main difference between interest rates charged on cash withdrawals on credit card and interest on loan on credit card is that banks or credit card companies do charge higher interest rates which is above the average personal loan interest rates. Besides interest rates there might be some additional charges too as hidden charges on cash withdrawals from credit cards. But on a loan on credit card rate of interest are lower and you can repay the loan amount in easy monthly installments as EMIs.
Benefits of Loan On Credit Card
- With a loan on credit card you may get instant cash whenever you need it for any purpose. There are no restrictions on how much loan amount you can use and where you can use the received funds.
- The rate of interest is way lower than the interest rate on cash withdrawals on credit cards.
- Since the bank already has your all the required documents when you had applied for credit card therefore to get loan on credit card there is no further documents required.
- You may apply for a loan on credit card online or by simply making a phone call to your bank’s customer care number.
- With a loan on credit card, the loan amount gets disbursed in your bank account very fast upon approval.
- The best part is you can apply for a loan on credit card from anywhere. You don’t need to visit the bank branch personally. Simply you may apply for it online or by a phone call or through your bank’s mobile application.
- The process fee is very low.
- You can repay the loan on credit in monthly installments as EMI. The monthly EMIs will be billed to your credit card every month.
- Normally loan on credit card is offered by the banks for a minimum 3 months to maximum tenure of 24 months but depending on the relationship with the bank you may negotiate the loan tenures and it can go up to 48 months. However take note that, the minimum the loan tenure is the rate of interest will be lower and the maximum the loan tenure is then rate of interest will be higher. So when you are applying for the credit card loan then you must plan the tenure because it will save you a big chunk of money.
Conclusion
Now you must have clear understanding that How to Take Loan On Credit Card. Loan on credit card is convenient and easiest way to get instant loan against credit card. You may fulfill your urgent needs of fund by loan on credit card. Since there are no documents required to apply for this credit card loan and there is no need to visit any bank branch, you may apply it from anywhere online or by a phone call to your credit card company or bank’s customer care number.
Loan On Credit Card funds get disbursed in your account instantly almost within a few seconds to within a few minutes. Therefore it is fastest way to get instant cash. But similar to all other loan, please pay attention to the terms and conditions of the loan. Negotiate with your bank and find out what loan repayment tenure work bests for you and how much loan amount you can afford to repay. Because it wont make sense to to put additional burden on your pocket as monthly EMIs installments.
