How does the Best Credit Card Loan Offer Fulfil Your Financing Needs ?
14 February, 2024
Synopsis
You can use your Credit Card’s limit to get a loan.
You can get an Insta Loan where the Loan amount is within the credit limit.
Ensure you check the interest rates, prepayment fees and other terms and conditions.
A Credit Card is a convenient payment card that allows you to pay for a multitude of payments with a set credit limit on the card. Besides simplifying online and offline payments, a Credit Card also comes with a Loan feature. With this feature, you can apply for a Loan on Credit Card. This type of loan is typically pre-approved to select customers of the card issuer or card issuing bank. Know how you can get a Loan Against Credit Card.
How The Best Loan On Credit Card Offer Helps You Meet Your Financing Needs
Here are various advantages of Loan on Credit Card you ought to know:
Almost Instant Availability: If you’re pre-approved for a Loan on Credit Card, you may get instant access to the loan amount instantly.
Minimal to No Documentation: The application process for a Loan on Credit Card typically requires no physical documentation. All you have to do is fill out an online application form.
Collateral-Free: Loan on Credit Card is an unsecured loan, which means you’re not required to provide collateral to apply for the loan.
Flexible Repayment Terms: You can select a tenure of your choice. However, note that longer tenures result in higher interest amounts.
Get the Required Amount: You don’t have to use the maximum loan amount. You can opt for a lower amount and pay interest only on the utilised amount.
Types of Loan on Credit Card
Generally, you can apply for the following types of Loan on a Credit Card:
Loan Amount Within the Credit Limit: You can apply for a Loan amount less than your card’s credit limit. For instance, if your Credit Card limit is ₹1 lakh, your maximum loan amount will be ₹1 lakh.
Loan Amount Exceeding the Credit Limit: You can apply for a Loan amount that is either equivalent to or greater than your credit limit. For instance, if your credit limit is ₹1 lakh, then you can apply for a ₹1 lakh or higher Loan amount. Also, your credit limit is not blocked.
Conversion of Credit Card Purchases into EMIs (SmartEMI): You can convert your Credit Card purchases into pocket-friendly instalments. Your card issuer may set limitations on which transactions can be converted into EMIs.
When considering a Loan on Credit Card, it's important to keep the following factors in mind to take advantage of the best offers:
Costs: Generally, Loan on Credit Card interest rates are fixed, and there may be a nominal processing fee. It's advisable to review the terms and fees before applying.
Loan Amount: The loan amount usually depends on your Credit Card's limit. Choose a loan amount that meets your needs to avoid unnecessary interest payments.
Credit Limit: With certain types of Loan on Credit Card, your credit limit may be blocked until the loan is fully repaid.
Prepayment Terms: If you decide to close the loan before the tenure ends, you may be required to pay a percentage of the outstanding amount as a prepayment charge.
Need Funds Urgently? Apply for an Xpress Loan on Credit Card
Get access to funds in seconds with a Loan on your HDFC Bank Credit Card. Enjoy low processing fees without any paperwork. XpressWay offers an end-to-end digital process. With HDFC Bank, you can also enjoy flexible repayment terms, so that you can repay your Loan in a pocket-friendly manner. Get started here.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Loan on Credit Card at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
