Loan on Credit Card

Apply for a loan on a credit card and get instant money disbursal into your account. The credit card loan can be used for any purpose just like a personal loan. No documentation is required and the borrowed amount can be repaid easily in EMIs.

Top Banks For Loans against Credit Card

BankTenureRate of Interest
HDFC Bank12 to 60 months1.10% to 1.50% p.m.
ICICI Bank12 to 60 months14.99% to 15.99% p.a.
Axis Bank12 to 48 months12.60% to 22.20% p.a.
SBI12 to 48 monthsAs per existing offer
Kotak Mahindra Bank6 to 48 monthsAttractive rate of interest

HDFC Credit Card Loan

  • Insta Loan: You can avail this HDFC Credit Card Loan for instant funds requirement. EMI of the loan will be included in the immediate next billing cycle and will be a part of the minimum amount due appearing in the monthly billing statement. The rate of interest charged on HDFC Credit Card Insta Loan will be 1.25% p.m. The repayment period ranges from 12 months to 48 months and you can choose the tenure as per your EMI affordability.
  • Insta Jumbo Loan: The loan amount for HDFC credit card loan offer will be over and above the Credit Card limit. In this case, the Credit Card limit will not be blocked. A separate card number will be given for the jumbo account and you will receive a separate statement for the loan account. The EMI for HDFC Credit Card Jumbo Loan will be billed in the loan account statement in the immediate next billing cycle. The billing date and payment due date will be the same as the Credit Card account. The rate of interest charged will be 1.25% p.m. The repayment tenure for this loan against credit card HDFC will be between 12 months to 60 months and you can choose the tenure that suits you the best. An Auto Pay will be activated for Insta jumbo loan within 7 days of loan booking. The EMI will be debited to the savings account of the cardholder on the due date.
  • Balance Transfer of EMI: Pay the outstanding balance on non-HDFC Bank Credit Card or any loan by converting it to EMI with HDFC Bank Credit Card. The HDFC credit card personal loan amount will be blocked against your Credit Card limit. The repayment tenure ranges from 12 months to 60 months and the interest charged will be 1.10% p.m.
  • Smart EMI: Convert every purchase on HDFC Credit Card except jewellery into EMI. The repayment tenure for this HDFC Bank credit card loan ranges from 9 months to 36 months and the rate of interest charged will be 1.50% p.m.

All the above loans will be approved within seconds as there is no documentation involved.

ICICI Bank Credit Card Loan

  • ICICI bank offers loans against the Credit Card to existing Credit Cardholders as well as new customers at an attractive rate of interest.
  • The ICICI credit card loan is based on the Credit Card spends, payment history and transaction pattern.
  • The maximum amount offered is Rs. 20 Lakhs.
  • The interest rate for personal loan on credit card ICICI varies from 14.99% to 15.99% p.a.
  • It is basically an Unsecured Personal Loan with no requirement for collateral security or guarantor.
  • The repayment period for ICICI Bank credit card loan ranges from 12 months to 60 months.
  • The EMI will be included in the immediate monthly billing statement and will appear along with the minimum amount stipulated in the card statement.
  • GST will be applicable on the loan against credit card ICICI EMI amount.

Axis Bank Credit Card Loan

  • Axis bank offers Loan Against Credit Card to existing Credit Cardholders.
  • Axis bank credit card loan is an Unsecured Personal Loan offered at an interest ranging from 12.60% to 22.20%. The interest rate is arrived at based on various factors.
  • The loan will be disbursed within seconds to the savings account of the cardholder since there is no documentation involved.
  • Multiple tenure options are available to suit your budget for Axis Bank instant loan on credit card.
  • GST is applicable to the EMI amount.
  • Processing charge at 1.5% of the loan amount or  500 (whichever is lower) will be collected.
  • Pre-closure charge at 3% of the outstanding loan balance or  300 (whichever is higher) is applicable.
  • The tenure for Axis credit card loan varies from 12 to 48 months.

SBI Credit Card Loan

  • SBI  credit card loan comes with a low rate of interest as per existing offer is applicable.
  • Pre-approved offer over & above or within the existing credit limit.
  • The minimum loan amount for Encash is Rs. 10,000.
  • No documents, paperwork and post dated cheques are required for loan against credit card SBI.
  • Money is credited directly to your bank account in just 48 working hours through NEFT.
  • Tenure for SBI credit card personal loan varies from 12 to 48 months to select cardholders.
  • A one-time processing fee of 1.5% (minimum Rs. 499) is charged.
  • In case of foreclosure, a foreclosure fee of 3% on the outstanding principal amount will be charged.

Kotak Mahindra Bank Credit Card Loan

  • Attractive interest rates are applicable.
  • Get Kotak credit card loan amount up to Rs. 5 Lakhs.
  • Flexible repayment tenure of 6 months to 48 months.
  • Money transferred instantly to your savings bank account.  
  • Customers must have a good track record.
  • You can apply through net banking or mobile banking of the bank.

Benefits of Loan against Credit Card

Benefits of taking a Loan Against Credit Card are numerous. Some of the benefits are as mentioned below:

  • You can get an instant loan on a credit card at the time of urgent need.
  • The interest charged is much lower compared to the interest on cash withdrawals on credit cards.
  • The disbursement is faster since no documentation is required.
  • You can apply for the loan online or make a request through a phone call.
  • The loan can be accessed from anywhere across the country.
  • High-value purchases can be converted to equated monthly instalment (EMI) with a Credit Card loan. The EMI will be billed to your card every month.
  • Loan Against Credit Card is similar to an unsecured personal and does not need collateral or guarantor.
  • The processing charge for loan against credit card levied is comparatively low.
  • The interest rate on the Loan Against Credit Card depends on the type of Credit Card held by the cardholder.
  • Flexible repayment option with a maximum repayment period of 5 years.

Loans against Credit Card Eligibility

The eligibility criteria for Loan Against Credit Card are as follows:

  • Personal loan against credit card is given to both existing as well as new customers. However, some banks limit the Loan Against Credit Card facility to their existing cardholders.
  • Holding a Credit Card is a must for availing a Loan Against Credit Card.
  • The repayment of earlier Credit Card dues must have been made promptly on or before due dates.
  • You should also have a high credit score (700 or above) to be eligible for an instant loan on credit card.
  • If your income level has improved, you can apply for the Loan Against Credit Card as well as top-up loans against Credit Card.
  • An improved income level will help to change the category of the card to a higher level. If you have a silver card it can be changed to a gold category which will increase your loan eligibility.
  • Before applying for the Credit Card loan, it is better to check your eligibility to understand the quantum of loan that will be provided.
  • The quantum of Loan Against Credit Card will be generally higher than the cash withdrawal limit.
  • The cash withdrawal limit will be blocked until the outstanding balance of Loan Against Credit Card comes below the cash withdrawal limit.

Loans against Credit Card Document

No documents are required for a Loan Against Credit Card as the required documents will have been submitted while applying for the Credit Card.

Kotak Personal Loan Festival Offer 

Ahead of festival season, Kotak Mahindra Bank has announced Rs 999 flat processing fee offer on Personal Loans. Customers can avail of instant approvals on personal loan applications up to Rs. 20 Lakhs at lowest interest rate starting at 10.25% p.a for maximum of 5 years. 

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Loan on Credit Card FAQs

How do loans on credit cards work?

  • The Credit Card issuer will set a limit for the card depending upon the income and the creditworthiness of the applicant.
  • If you are holding a Credit Card and are in urgent need of funds, you can apply for an instant Loan Against Credit Card up to the maximum limit of the card. 
  • The loan will be disbursed in the form of a demand draft or by way of credit to your savings account. 
  • The bank will block the cash withdrawal limit if the loan against the Credit Card is higher than the cash withdrawal limit. However, once the outstanding loan balance of Loan Against Credit Card falls below the cash withdrawal limit, it will be restored.
  • Now you will have to repay the borrowed amount in EMIs along with the applicable interest.
  • A Loan Against Credit Card is similar to an Unsecured Personal Loan which can be used for any purpose. Credit Card loans do not involve an elaborate process and are approved and disbursed within no time.

Do I need to pay a processing fee for a loan against a credit card?

Yes. A nominal processing charge will be collected by some of the banks based on their internal guidelines.

Can new customers avail a Loan Against Credit Card?

Yes, new customers can avail a loan against their credit card. However, having a credit card is mandatory to avail of a loan against credit card.

Are personal loans better than credit card loans?

A Loan Against Credit Card is similar to an Unsecured Personal Loan which can be used for any purpose. However, in some cases, credit card loans are better than personal loans. Unlike Personal Loans, Credit Card loans are pre-approved loans which will be disbursed immediately on placing a request. If you are holding a Credit Card and are in urgent need of funds, you can apply for an instant Loan Against Credit Card. Credit Card loans do not involve an elaborate process and are approved and disbursed within no time.

What is a Loan Against a Credit Card?

A Loan Against Credit Card is an Unsecured Personal loan offered by banks to resolve immediate financial requirements of the cardholder.

What are the eligibility criteria for a Loan Against Credit Card?

The eligibility criteria for a Loan Against Credit Card are:

  • Having a Credit Card is a basic requirement
  • The earlier Credit Card dues should have been paid promptly on or before the due date
  • A good credit score and good income with good repayment capacity are mandatory

What are the documents required to apply for a Loan Against Credit Card?

No documents are required to apply for a Loan Against Credit Card. It is a zero-documentation process.

How to apply for a Loan Against Credit Card?

You can apply for a Loan Against Credit Card online through net banking. You can also apply for a loan through phone banking or by visiting the nearest branch.

What is the mode of disbursement for a Loan Against Credit Card?

The loan will be credited directly into the savings bank account of the cardholder. If the cardholder does not have a savings account with the respective bank, the funds will be transferred through NEFT/RTGS to the savings account with any other bank. For this, a cancelled cheque of the bank account has to be provided.

Is there any difference between the interest rates charged on cash withdrawals on Credit Card and a Loan Against Credit Card?

Yes, there is a difference in the interest rates charged. Banks normally charge a higher rate of interest on cash withdrawals as compared to interest on a Loan Against Credit Card.

Does Citibank offer loan on credit card?

Yes, you can get Citibank credit card loan within or above your credit limit for flexible tenure ranging from 6 to 48 months.

Does RBL Bank offer loan on credit card?

Yes, you can avail of RBL credit card loan under the ETMONEY LoanPass scheme. You have to pay interest only on the borrowed amount.