Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Credit Card Loans

    What is a Loan on Credit Card?

    A credit card comes with a specified pre-approved credit limit which can be used by the holder in a month. However, if you are in urgent need of cash, most banks offer you the facility of loans against credit card. Here, you can take a loan against the credit limit which you have been given. Once the bank approves your loan request, the limit will be credited to your account. Bank charge a certain interest rate for the repayment of the loan. You can repay this loan through Equated Monthly Installments (EMI) for a specified tenure.

    Top Banks Offering Loan on Credit Card

    There are many banks which offer the facility of loan on credit card. Top banks in the country which provide loan on credit card are:

    ICICI Bank

    ICICI Bank is one of the largest banks in the country and is offering a personal loan on credit card to selected ICICI Bank customers. This depends on the credit score, repayment habits of the cardholder. The maximum loan given by the bank under this scheme is Rs.10 lakh and a flexible tenure range of up to 60 months or 5 years. The loan amount will be directly credited to your Savings Account and there is minimal documentation involved in this procedure.

    HDFC Bank

    HDFC Bank offers the facility of loan on credit cards as well which is pre-approved and will be blocked against your credit limit. HDFC Bank will offer a maximum loan of Rs.5,00,000 and can be repaid with an interest of 1.25%. The bank offers a range of tenure ranges going up to 48 months or 4 years. Since the loan is pre-approved, there is no extra documentation needed and the loan is credited to your savings account almost immediately.

    IDBI Bank

    IDBI Bank also offers a loan on your credit card which is termed as a General Credit Card Loan. The minimum loan amount offered is Rs.50,000 and the maximum is Rs.5 lakh. The tenure range is a maximum of 5 years and the interest rate is linked to the base rate of the bank. Any individuals who are engaged in non-farm entrepreneurial activity are eligible for this loan.

    Kotak Mahindra Bank

    With a Kotak Mahindra Bank credit card, you can get a loan on it of up to Rs.5 lakh with attractive interest rates. The tenure of repayment ranges from 6 months to 4 years. Once the loan is applied for and approved, the amount is instantly credited to your savings account of Kotak Mahindra Bank or of any other bank. The customers who have a good credit score, transaction patterns, and repayment habit will be eligible for the loan against credit card.

    IndusInd Bank

    A loan against your credit card is also given by IndusInd Bank which includes zero documentation. With your IndusInd credit card, a pre-qualified loan is given to you. You can get a loan against your credit limit or loan above credit limit as well depending on your requirement. The loan against credit cards come with flexible tenure options and attractive interest rates.

    Features of a Loan on Credit Card:

    Different banks offer comprehensive loan scheme when it comes to loan on credit cards. Listed below are some of the features of loan on credit card.

    • Since most of the loan on credit cards are pre-approved, you need not submit any extra documentation, the loan will be processed and disbursed quickly.
    • With EMI schemes offered by the issuers, you will be able to break your expensive purchases into easy affordable instalments.
    • Some banks also offer loan against other bank’s credit card through Balance Transfer on EMI where you can transfer the outstanding balance on other credit cards to one credit card and pay the EMI.
    • Issuers also offer you the option of taking a loan within or over your credit limit.

    Eligibility for Loans on Credit Card:

    Most credit card loans are unsecured and do not require any collateral for the loan. Hence, the loan is offered to select cardholders only. Issuers have a stringent eligibility criteria when it comes to granting a loan on credit card. The cardholder should have a commendable credit history and a good purchase and repayment pattern to be able to apply for a loan on credit card.

    Quantum of Loan

    The quantum of loan on credit card usually depends on the credit limit. Some issuers also offer loan over and above the credit limit where the availed loan amount will not be blocked against the credit limit. Also, starting from a minimum purchase amount of Rs. 2000, you will be able to convert your purchases to loan and pay it as EMIs.

    Advantages of a Loan on Credit Card:

    • Most of the credit card loans are pre-approved and unsecured. You don’t have to submit any documents or collateral to avail a loan on credit card.
    • With loan on credit card, you have the option to convert your expensive purchases to easy monthly instalments.
    • Most issuers also provide you the option to transfer the balance outstanding from other cards to one single card and pay in EMIs.
    • Since a loan on credit card is pre-approved, it is easy to apply and is disbursed quickly when compared to other loans.
    • Most of the loans on credit card require no guarantor or post-dated cheques.

    Compare Loan on Credit Cards from Different Banks:

    Bank/Card Issuer Quantum of Loan Tenures Disbursal Mode and Time Interest Rate
    HDFC Within or above the credit limit 12 to 60 months depending on loan type Credited to HDFC Savings account Competitive
    ICICI Up to Rs.5 Lakhs Options ranging up to 36 months Disbursal takes 7 to 8 working days Depends on the amount and credit history
    IndusInd Bank Depending on the credit limit Ranging from 6 to 36 months Credited to the savings account As per schedule of charges
    Standard Chartered Up to Rs.5 Lakhs Ranging from 12 to 60 months Credited in account within 2 days Starts from 1.17% per month
    HSBC Minimum is Rs.2000 Multiple tenure options Can be converted to EMI within 15 days of purchase 15% to 21% per annum

    FAQs regarding Loan on Credit Cards:

    1. How do loan on credit card work?

      When you make a cashless transaction with your card, you are essentially borrowing from the issuer. In the same way, you can avail loans based on your credit limit. You will be charged a certain interest rate for the loan.

    2. Can every person having a credit card get a loan on credit card?

      No. Every issuer has fixed eligibility criteria when it comes to loan on credit cards. This facility is offered only to select cardholders based on the credit repayment history and credit standing.

    3. What is the disadvantage of loan on credit cards?

      The interest rate will be comparatively higher and if the debt is not paid on time, you might incur significant penalties.

    4. What documents do I require to apply for a loan on credit card?

      Most of the loans on credit cards are pre-approved and require no collateral. You do not have to submit any documents while applying for a loan on credit cards.

    5. What are some of the factors that affect my eligibility for loan on credit cards?

      Issuers provide this loan to select cardholders having good credit rating and commendable credit repayment history. Also, improved income levels over the years have a positive effect on your eligibility.

    6. How is the loan on credit cards different from cash withdrawal using a credit card?

      The key difference is that limit on cash withdrawal is lower than that of loan on credit card. Also, the interest rates for cash withdrawal tend to be higher than that of a loan on credit card.

    7. What will be the extra charges for a loan on credit card?

      You will be charged a certain amount as processing fee. Also, you might be levied a pre-payment penalty if you decide to foreclose the loan.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Loan on Credit Card Reviews

    • HDFC Bank Credit Card
      "Good service"
      0.5 5.0/5 "Blown Away!"
      Even if I forget to convert EMI conversion for the usage of my card, HDFC banker use to contact me to remain for this option. I have been using this card for more than 2 years. Since i applied a bike loan at that time I got this card offer direct from bank. The credit limit of 30K at initial now they enhanced up to 60K. It is a life time free card. They provide movie ticket offer but I didn't prefer. The customer service is good and they make to understand on easy.
      Was this review helpful? 14
      , chennai
      Reviewed on Mar 21, 2020
    • Kotak
      Kotak Credit Card
      "Good "
      0.5 4.0/5 "Great!"
      Already I had taken a personal loan from KOTAK at that time banker has offered a credit card with life time free. I have been using this card for one year. The credit limit is sufficient and I never preferred for the cash limit. I utilized EMI conversion more than 3-4 times but charges are high. I use this card for shopping and all other purposes. I don't feel they are providing much offers .
      Was this review helpful? 7
      , kochi
      Reviewed on Mar 20, 2020
    • Standard Chartered Bank Credit Card
      "Good"
      0.5 4.0/5 "Great!"
      If I spend any charge for Standard Chartered credit card of Rs. 150 and i will be getting 3-4 points. This bank does not have next level card, if any one interest to go next level card that is not applicable. Rate of interest was okay processing for loan and all flat 2% they are charging.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 19, 2020
    • Axis Bank Credit Card
      "Need to decrease the rate of interest"
      0.5 4.0/5 "Great!"
      From Axis Bank, the rate of interest and fee was high, if loan or emi conversion i am doing interest was high, need to decrease. This is a privilege card i am using since 18 months , and they given a sufficient credit limit. This bank has a good customer service.
      Was this review helpful? 3
      , chennai
      Reviewed on Mar 19, 2020
    • SBI Cards Credit Card
      "Good service "
      0.5 5.0/5 "Blown Away!"
      Since 2 years, i am using this credit card from SBI. I do pay Rs.350 as an annual fee and never had any waiver option. This bank has a excellent customer service and app is very good. Credit limit is fine and got Rs. 1L based on this card transaction, i got a loan offer. I am using this card for fuel purpose, buying home appliances and shopping.
      Was this review helpful? 3
      , bangalore
      Reviewed on Mar 15, 2020
    • RBL Bank Credit Card
      "Good Card"
      0.5 5.0/5 "Blown Away!"
      I don't have any problem with the RBL credit card. In this card i get a reward points and cashback offers. Based on my consumer durable loan from Bajaj Finserv they have provided me this card. Almost i hold this card for 1 year. They have provided me a credit limit of Rs. 88000 which I'm very much satisfied with it.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 13, 2020
    • HDFC Bank Credit Card
      "Excellent card"
      0.5 4.0/5 "Great!"
      HDFC Bank offered Titanium Times credit card and i am using this card more than 4 years. This is a life time free card and given a credit limit of Rs. 75k, its good. EMI option is available and also they given a loan based on this card. Reward points can be converted as a cash back but i am getting less rewards.
      Was this review helpful? 0
      , indore
      Reviewed on Mar 13, 2020
    • IndusInd Bank Credit Card
      "Good Card"
      0.5 5.0/5 "Blown Away!"
      The process of getting the credit card is quite easy from INDUSIND bank. As of now I have not used this card. When I applied the personal loan with this bank, they have provided me a free of cost credit card to me based on my loan documents. They have given me a good limit of Rs. 2L. They are sending offer messages to my number.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 12, 2020
    • Axis Bank Credit Card
      "Overall good"
      0.5 5.0/5 "Blown Away!"
      Axis bank card is a wonderful card to use which am using for more than 5 years and they have provided the loan offer also. Depends on my spending, they are increasing the credit limit on a periodically. When i call the customer care for any kind of clarification, they will rectify it immediately.
      Was this review helpful? 4
      , coimbatore
      Reviewed on Mar 11, 2020
    • HDFC Bank Credit Card
      "Picture perfect "
      0.5 5.0/5 "Blown Away!"
      I am using HDFC card since 6-7 months. My friend has suggested about this card. It is very much good card and their service is awesome. This is a life time free card and the credit limit is low but according to my salary, it was okay of 40K. EMI conversion is applicable. I am getting reward points, can be converted to cash and gifts. Around 2-3 months before , I got message from banker that I am eligible for a loan and approval within 3 minutes also am getting offer for other products as well.
      Was this review helpful? 3
      , new delhi
      Reviewed on Mar 10, 2020
    • RBL Bank Credit Card
      "Good Card"
      0.5 5.0/5 "Blown Away!"
      I got my first credit card from RBL card. They used to intimate all the information to the customer through SMS, call and mobile app. I have been using this card for almost past 4 years. One time, they have processed the EMI option without my knowledge which i don't like it. Received the credit limit of Rs. 98000. First Bajaj Finserv approached me, when i had a personal loan with them and i just accepted their card proposal.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 10, 2020
    • IndusInd Bank Credit Card
      "Good Card"
      0.5 5.0/5 "Blown Away!"
      I am using Indusind bank credit card for around 2 years and the charges are nominal. They will waive off the annual fee based on yearly usage of the card. In starting itself, they have provided me a huge limit of Rs. 1 lakh and their reward point system is not that much good. They are giving loan option to the customer and they do the follow up also for EMI conversion, reminder for the due date.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 10, 2020
    • SBI Cards Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken SBI personal loan through bank .The rate of interest was 12%it was nominal and the agent shared all the relevant details about the loan process .This was taken for my domestic requirement and to purchase a plot .There was no difficulties faced until the loan was sanctioned .
      Was this review helpful? 0
      , kochi
      Reviewed on Mar 09, 2020
    • HDFC Bank Credit Card
      "Best card among all"
      0.5 5.0/5 "Blown Away!"
      HDFC credit card is best in all cards. I have purchased HDFC credit card on 3 years back. Every year I need to pay an annual fee of Rs. 500. I am holding my Snap deal credit card hence I'm getting cash back when I swiping the card at petrol bunks. Very frequently I'm getting personal loan offer on credit cards. I have not faced any issue on this card.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Mar 06, 2020
    • HDFC Bank Credit Card
      "Awesome card"
      0.5 5.0/5 "Blown Away!"
      HDFC people provides very excellent service. Its a good card to use. They have assigned me a relationship manager for me hence this guy calls me every week asking me about any service that i want. I use this card for almost 5 years. Because of my salary account is in this bank so that they have given me this card. I keep on getting loan offers and other offers like reward points but I never used those offers because I don't use this card on a regular basis.
      Was this review helpful? 1
      , jammu
      Reviewed on Mar 05, 2020
    • Kotak Credit Card
      "Satisfactory card"
      0.5 4.0/5 "Great!"
      Since I have taken a car loan from Kotak bank so as a complementary they have provided me a credit card. They are giving 2 movie tickets free in a month. I need to pay the annual fee of Rs. 450. I have not faced any issue on this card till now. Through online net banking facility, I used to make the payment. Their customer support is not good because we don't get the line and they don't response immediately to the customer.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 05, 2020
    • RBL Bank Credit Card
      "Good "
      0.5 3.0/5 "Satisfactory"
      I am holding RBL card for more than 2 years which is a Bajaj card. I got loan offers based on my credit limit. Initially the credit limit was 35K and now they have enhanced up to 95K. EMI conversion is available, if I swipe the card more than 3K. I am using net banking service is fine. I get one plus one free movie ticket in bookmyshow.com.
      Was this review helpful? 8
      , hyderabad
      Reviewed on Mar 04, 2020
    • SBI Cards Credit Card
      "Good card for benefits "
      0.5 4.0/5 "Great!"
      I have been using SBI card for more than 1.5 years which I applied through website, since I am holding other loan with them so got card offer. It is annual fee chargeable of 500 rupees but there is waiver off option of 30K to be spent within a year. It is a simply save card. Some time when I try to use this card in Gpay which was blocked for security reason it will be activated again. I can pre close EMI conversion at any time. Based on usage I am getting more cash back benefits.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Mar 04, 2020
    • Citibank Credit Card
      "Excellent card "
      0.5 5.0/5 "Blown Away!"
      I am using CITI Bank Indian Oil Platinum credit card more than 20 years. This bank offered me a free card and they given a sufficient credit limit and also they given me a loan based on my usage. I am using this card for all purchase and also i am getting fuel surcharges.
      Was this review helpful? 0
      , tirunelveli
      Reviewed on Mar 04, 2020
    • RBL Bank Credit Card
      "Okay"
      0.5 3.0/5 "Satisfactory"
      I am using this RBL Bank credit card more than 1 year. This card has some annual charges Rs.399 if i purchase some amount no need to pay the annual charges. I was taken consumer durable loan long back based on that i got this credit card offer and the service was good.
      Was this review helpful? 4
      , hyderabad
      Reviewed on Mar 03, 2020
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