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SBI Loan on Credit Card:When You Should Not Apply?

Updated on: 15 Dec 2021 // 32 min read // Credit Cards
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Over the years, Credit Cards have surged in popularity and have contributed to making life a whole lot easier for all of us. After all, Credit Cards have ushered in a whole new era of convenience – through cashless transactions, and additional perks such as rewards points, cashback, etc.

Moreover, Credit Cards work on the principle of revolving credit, which allows the individual to get the benefit of using up credit repeatedly as per their preference (up to a certain pre-approved limit). The facility is available as long as the account is open and payments are made on time. It works on a deferred system which allows an individual to enjoy the benefits of buying now and paying later. In other words, every time you swipe your card to make payments or make any purchases, the limit available to you gets reduced, and as soon as you make payments and clear off your bills, the limit is accordingly reset.

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Loan on Credit Cards

Another benefit of Credit Cards is that you can avail loan on Credit Cards whenever you require an additional accession to funds. These funds can prove handy when you’re on the lookout for short-term financing and are usually disbursed almost immediately without having to go through the hassles of lengthy paperwork either. Moreover, you also have the option of paying for your purchases through EMIs.

Let’s take a look at some of the benefits of availing Loans on Credit Cards.

Pre-approved & Hassle-free Loan Procedure: Getting a Loan on Credit Card such as SBI Loan on Credit Card, for instance, is a hassle-free process as it is unsecured and pre-approved product. What this means is that you don’t need to furnish any documents or put up any collateral in order to avail a loan on your Credit Card. That being said, you do need to ensure that you have had a relatively good repayment history and a decent credit score.

Easy Repayment: Getting a loan on your Credit Card hands you the option to convert your expenses in simple EMIs. You can either arrange for these EMIs to be automatically deducted from your Savings Account or set payment through some other Credit Card.

Instant Disbursal: Undoubtedly, one of the best features of getting a Loan on Credit Card is that they are instantly disbursed without any lengthy over-drawn procedures. If you’re looking for an instant source of funds, these kinds of loans can give you the credit boost you need. Moreover, these loans can even be applied online. As compared to traditional loan products, there’s no processing or waiting time either.

Depending on your bank, you also have the option of converting your purchases to EMIs as well.

No Documentation or guarantor required: As stated before, loans on Credit Card give you the option of availing unsecured and collateral-free loans without the need for any documentation, guarantor or post-dated cheques. Thus, you’re spared the inconvenience of providing a guarantor or pledging a security just to avail a loan.

Balance transfer: You can also enjoy the benefit of balance transfer. You can transfer the outstanding balance from other cards to a single card. Thereon, you can proceed to pay off the balance in EMIs on your loan on Credit Card. This eliminates the inconvenience of having to pay off different loans on separate accounts as well as essentially, you can consolidate all your loans in a single account and proceed to pay them off in EMIs.

Why opt for SBI Loan on Credit Cards?

State Bank of India is the largest public sector bank in India and one of the most popular banks amongst customers owing to the numerous financial services it offers. From SBI Personal Loan to Home Loans, SBI covers them all. Furthermore, SBI Cards offer several types of Credit Cards that cater to different segments of customers. From travel-friendly cards to availing discounts on restaurants across the country, SBI has a card for every customer.

One of the best reasons for opting for an SBI Credit Card is that you can enjoy the feature of SBI Loan on Credit Card. With the help of this facility, you can avail an instant loan against your Credit Card, thus giving you instant credit for meeting any financial emergencies as soon as possible. Depending on the type of Credit Card you hold as well factors such as your repayment history and previous credit history, you will be eligible for a pre-approved offer. Moreover, it entails the need for minimal documentation and no security either.

Here are some of the main advantages of availing loan on an SBI Credit Card.

  • Owing to the attractive rates of interest offered by SBI on their Credit Card Loans, you can save on the high-interest rate of your Credit Cards.
  • You can opt for pre-approved instant loans directly through net banking.
  • You can fulfilall your extra cash requirements within 48 hours for online transfers.
  • No documents, paper-work, guarantor, or post-dated cheques are required to avail this facility. Moreover, only minimal processing charges are applicable.
  • You can repay in 12, 24, or 36 months and in some cases, tenure up to 48 months is also available.
  • Even after you’ve opted for a balance transfer, you can still continue shopping unabated.
  • If you’re still in need of additional funds, then you can always opt for Personal Loans to boost your credit such as HDFC Personal Loan.

Different types of SBI Loan on Credit Card

Easy Money – Exclusive Features

With Easy Money facility, you can apply for a cash loan for a minimum amount of Rs. 5,000 or a maximum of up to 75 percent of your available cash limit on your SBI Credit Card.

The interest rate is 2.45 percent per month. The maximum tenure for repayment is 45 days.

You will be charged a processing fee of only 1.5 percent or Rs. 199, whichever is higher.

Enjoy unparalleled convenience and get money credited directly in your bank account within 48 working hours with NEFT Facility. You can make the repayment along with your Credit Card bills directly.

Encash Facility – Exclusive Features

Another pre-approved loan, Encash allows you to enjoy the convenience of an instant loan on demand.

If you have a good credit history and a previous relationship with the bank, you will be able to avail a pre-approved loan over and above or within your existing credit limit.

Processing time of this loan is swift, and it takes less than 48 hours for the amount to be credited in the bank account. Moreover, it requires minimal documentation and doesn’t need you to present any paperwork, guarantor, or post-dated cheques either. 

While there is no maximum limit on the Encash facility, in order to avail this facility, you must apply for a minimum amount of Rs. 10,000.

Compared to other traditional loans, you can enjoy comparatively a lower rate of interest while availing the Encash facility.

A one-time processing fee of 2 percent – up to a minimum of Rs. 499 and a maximum of Rs. 3,000 will be charged.

You can opt for a flexible repayment tenure between 12, 24, 36 or 48 months. 

You can either opt for an NEFT/ RTGS or an account payee cheque to receive the amount.

In case of a foreclosure, a 3 percent foreclosure fee on the outstanding principal amount will be charged.

Also Read: Different Types of SBI Debit Card

The Bottom Line

The instant loans on Credit Cards act as a ready reckoner for emergency cash lapses. The disbursal neither requires any need to visit a physical branch or lengthy paperwork, thus allowing you to avail money as and when needed efficiently. However, do exercise caution while availing a loan on a Credit Card as it’s a credit facility after all at the end of the day.

Also Read: Do Credit Card Loans Make for a Better Choice than Personal Loans?

To apply online for Best Credit Cards in India,  Secured Loans and Unsecured Loans, visit mymoneymantra, the leading online lending marketplace that offers financial products from 90+ Banks and NBFCs. We have served 7 million+ happy customers since 1989.

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