Credit Card Loan: A Preapproved Facility for Urgent Cash Needs
A Credit Card is a wonder product that comes loaded with multiple benefits. Besides offering you cash back, rewards and free credit period on available limit, it also offers you add-on benefits such as fuel surcharge waiver, easy EMI option and preapproval for Credit Card Loan. Thus a Credit Card is a ready reckoner for your immediate cash needs ranging for any of the personal needs such as travel, urgent bills, insurance premiums, shopping, home repairs & much more.
Let’s walk through this easy to apply, paperless cash option which can come to your rescue effortlessly on financially stressful days.
What is Credit Card Loan?
A Personal Loan against Credit Card or Credit Card Loan is only available on the basis of your past credit beahaviour. It will be extended according to the lender’s credit policy and your previous relationship with them. Thus Credit Card Loan is a preapproved personal loan offer for select customers only.
You do not need additional documentation to apply for this facility. The loan is approved and disbursed swiftly. You also get choice to choose flexible tenure and easy instalment options.
Different banks/ institutions offer loan facility against Credit Cards in different forms. It can be offered as a Balance Transfer to EMI plan or a separate loan account/ Overdraft over your limit or simply a loan against existing credit limit. Thus basis most important term and conditions of your Credit Card you can avail of this option.
Let’s explore top Credit Card Loan options available in India.
Top Credit Card Loan Options
1. HDFC – Insta Loan & Jumbo Loan
HDFC Insta Loan is an instant cash loan facility available to HDFC Credit Card customers. The loan is offered against your credit limit and thus blocks your Card beyond the available limit. You do not need any documentation for availing of this facility. The loan is offered at attractive rate of interest such as 1.25% per month. You can avail this loan for 12 to 48 months as per your needs. You can apply within seconds by logging on to your internet banking account.
If you want to Apply for Personal Loan Against your HDFC Credit Card beyond the existing card limit, apply for HDFC Jumbo Loan. This product is exclusively available to HDFC credit card customers with good track record. Loan can be used for 12 to 60 months. A new card is issued and you will receive a separate monthly statement. The EMIs will be debited from your Savings Account.
2. Encash on SBI Credit Card
SBI Encash is a pre-approved Credit Card Loan facility for select SBI Credit Card customers. It allows the cardholders apply for money-on-demand. The applicant will get a choice to apply within the approved card limit or go beyond the existing limit as per the needs. It takes maximum of 48 hrs to transfer the amount to your bank account.
To apply for SBI Encash, you can follow any of the 3 steps:
1. Website & Mobile App
Login. Those who are eligible for SBI encash facility will see the link on the left hand navigation under benefits section. Click the link and share your SBI Card and Date of Birth to book the encash. Fill the amount you want and confirm the booking.
2. Call Helpline
Call 39 02 02 02 (prefix std code) / 1860 180 1290 to check if you are eligible for encash facility. You can share your request on call. An SMS will be sent to your registered mobile number to confirm the request.
3. Mobile Banking
SMS Encash to 56767 from registered number and your request will be processed.
No documentation is required as you are already an SBI Credit Card customer. You do not even need to submit any post-dated cheques to avail of this facility.
You can opt for 12, 24, or 36 months of tenor. A one-time processing fee of 2% within range of Rs. 499 to Rs 3,000 will be applicable. If you choose to foreclose the loan, 3% foreclosure fee will be levied on the outstanding principal amount.
3. ICICI Personal Loan on Credit Card
ICICI bank offers preapproved Personal Loan on Credit Card to select ICICI Cardholders. The eligibility is based on customer’s spend/ repayment behaviour & pattern. The bank allows multiple loans for customers with sound track record.
The amount is directly disbursed to customer’s ICICI Bank Savings Account. For non ICICI SA customers, the transfer will be routed via NEFT or Demand Draft. The transfer may take 3-7 days, basis the option chosen by the customer.
It is completely hassle free to apply for ICICI Loan on Credit Card. You can apply through Internet Banking or iMobile. Alternatively, you can also call the customer care and check your eligibility & then make the request.
You can also apply by giving a missed call on 08045936070.
4. Axis Bank Instant Loan on Credit Card
Another fast and effortless preapproved Cash Loan is Axis Bank Instant Loan against Credit Card. The application is approved for eligible customers. The approved limit for loan will depend on your relationship with the bank. No documentation is required. The loan amount is directly transferred to your Axis Bank Savings Account. You get flexibility to choose the tenor.
You can use Axis Bank Instant Loan on Credit Card calculator to understand the monthly repayment burden. The calculator helps to know exactly about the cost of interest, processing fees and service tax each month.
5. HSBC Cash on EMI
HSBC Banks offers cash-on-EMI on HSBC Credit Cards. The facility allows card members borrow easy cash and repay in EMIs at lower interest rate. The cash can be availed of in the form of a draft or transfer via NEFT. Being a Credit Card Loan for existing customers, no documentation is required. The borrower gets option to choose tenor of 6, 12, 18, 24 or 36 months. Flat processing fees of 2% (minimum of Rs 200) is applicable. The rate of interest will vary within a range of 10.99% to 21%p.a.
You can apply online or by sending SMS ‘COE’ to 575750. The bank representative will follow back with you. The facility is open to select customers only.
In all, Credit Card Loans are instant loan facility for urgent cash requirements. Adopting healthy financial habits and you will never dry out of preapproved credit options with your existing bank.
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