Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Credit Card BYTES FROM OUR KITCHEN

    Credit Card Loans

    What is a Loan on Credit Card? - The uses of credit cards are many. Starting from cashless transactions to reward points and special deals, you can use credit card anywhere across the globe. Also, cardholders can avail pre-approved loans on credit cards within or over their credit limit. Similar to the usual loan schemes, the issuer essentially loans you the amount which you will be able to repay at a later date while being charged a definite interest rate.

    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.

    Top Bank offering loan on Credit Card in India:

    • IDBI General Credit Card Loan (IDBI GCC)
    • IDBI Bank offers general credit card loan under the MSME portfolio for all individuals engaged in non-farm entrepreneurial activity. Assets acquired out of bank loan will be deemed as security. A minimum of Rs. 50,000 to a maximum of Rs.500000 can be availed as loan to meet the credit requirements of entrepreneurs.

    • Standard Chartered Loan on Credit Cards
    • Standard Chartered offers up to Rs. 500,000 as loan on credit cards. With interest rates starting at 1.17% per month and flexible tenures ranging up to 60 months, Standard Chartered loans on credit card is one of the most sought after financial product.

    • HSBC Loan on Phone
    • With the Loan on Phone scheme offered by HSBC, customers will be able to convert the expensive payments to easy instalments with low interest rates. Any purchase amount starting from Rs.2000 can be converted to EMI through just a call.

    • Kotak Mahindra Bank Personal Loan on Credit Cards
    • You can avail instant cash at low interest rates and zero documentation with Kotak Mahindra’s personal loan on credit cards. This loan on credit card is easy to apply, hassle free and is also disbursed quickly.

    • ICICI Personal Loan on Credit Card
    • “Cash-in select” scheme is offered to select ICICI customers based on their performance on ICICI credit cards. Customers can avail loans up to Rs.5 lakhs with multiple tenures ranging up to 36 months.

    • IndusInd Bank Loan on Credit Cards
    • IndusInd credit cardholders already have a pre-approved loan amount depending on the unutilized credit limit. Cardholders just to apply to instantly receive cash. Also, high value credit card purchases can be instantly converted to flexible monthly instalments.

    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?
    2. 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.

    3. Can every person having a credit card get a loan on credit card?
    4. 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.

    5. What is the disadvantage of loan on credit cards?
    6. The interest rate will be comparatively higher and if the debt is not paid on time, you might incur significant penalties.

    7. What documents do I require to apply for a loan on credit card?
    8. 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.

    9. What are some of the factors that affect my eligibility for loan on credit cards?
    10. 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.

    11. How is the loan on credit cards different from cash withdrawal using a credit card?
    12. 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.

    13. Can I convert all my purchases to EMI?
    14. No. Generally, issuers have a cap on the purchase amount which can be converted to EMI. Also, certain issuers do not allow gold and jewellery purchases to be converted to EMIs.

    15. What will be the extra charges for a loan on credit card?
    16. 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.

    17. I purchased a TV four months ago using my credit card. Can I convert it to EMI?
    18. Transactions made before a certain number of days (as specified by the issuer) can be converted to EMI. Generally, the purchases made before 15 to 30 days can be converted to EMI. Contact your issuer to know more about the purchase time period.

    19. What is the meaning of balance transfer?
    20. You can convert the balance outstanding on other cards to a single credit card and pay it through easy instalments.

    Loan on Credit Card Reviews

    • Oriental Bank of Commerce Credit Card
      "Average service"
      0.5 2.0/5 "Expected more"
      I have been using my saving account with oriental bank of commerce for long time, there service is not up to the mark, and there branch service is not good they are not properly assisting me well and even there mobile application is not properly updated , i am not happy with their service, i need to maintain 3000 minimum ,they use to charged me message charges,and even atm charges and they use to charges me alot.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Jan 16, 2019
    • SBI Cards Credit Card
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I have been using SBI credit card from past one year, they have charged me annual fee up to 499 ,but there is waived off option available in this card, and i am not happy with the credit limit they have given me too low credit limit, like i am using from past one year still they have not increase my credit limit, but there offers is good.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Jan 16, 2019
    • Bank Bazaar Credit Card
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have been using bank bazaar service from past one year, and i came to know about bank bazaar service through on line, there service is good, i have been keep on checking my credit score through bank bazaar and even i have applied for financial product through them, and i have been both website and mobile application,it is easy to access, overall service is good.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Jan 16, 2019
    • HDFC Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have took credit card with HDFC bank recently, they have not charged me annual fee in this card , as it is life time free credit card, and i am happy with the credit limit they have charged me in this card, the reason for choosing this card is that they give good cash back to me,there overall service is good.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Jan 16, 2019
    • SBI Cards Credit Card
      "Good card"
      0.5 3.5/5 "Pretty good"
      I have been using Sbi credit card for a while, hey have charged me annual fee in this card, but there is waived off option available in this card, if i spend certain amount then my annual fee will get waived off, and i am happy with the credit limit they have given me in this card, they have charged me up to 50,000 as an limit, and there are no much good offers.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 16, 2019
    • Axis Bank Credit Card
      "Average card"
      0.5 2.0/5 "Expected more"
      I have taken credit card with Axis bank for an while, i am not happy with the credit limit they have given me in this card ,like i have expected up to 50,000 above,but they have given me up to 40,000,which is too less , i am not happy with the credit limit , and for that reason i have not started using this bank credit card, they have not charged me annual fee as it is life time free credit card.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 16, 2019
    • ICICI Bank Credit Card
      "Process is good"
      0.5 5.0/5 "Blown Away!"
      ICICI Bank is overall good for the credit card and the banking services are good. There are good offers and the credit limit is good as well. I am satisfied with the services. The transactions are smooth and easy and in all it has been a very good process.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 15, 2019
    • HDFC Bank Credit Card
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      I hold a credit card with HDFC Bank and the credit limit is good on the card. There are offers on the card, and it is a smooth process. The customer services and response is good and there are no issues while using the card too. Overall satisfactory.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 15, 2019
    • ICICI Bank Credit Card
      "Happy with the services"
      0.5 5.0/5 "Blown Away!"
      I bank with ICICI Bank for the credit card and the banking experience is good. The customer services and response is good as well. There are good deals and there are no charges for the card. The statements are sent to me on time and in all a good process till date.
      Was this review helpful? 0
      , jorhat
      Reviewed on Jan 15, 2019
    • HDFC Bank Credit Card
      "Average experience"
      0.5 3.0/5 "Satisfactory"
      HDFC Bank credit card experience is not up to the mark. They need to send me clear statements and there has to be more clarity on it. The credit limit is good and there are good offers as well. The services has to be improved. In all a average experience.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 15, 2019
    • ICICI Bank Credit Card
      "Satisfactory process"
      0.5 4.0/5 "Great!"
      ICICI Bank provided good customer services and they are responsive as well. They have offered me a good credit limit on the credit card and there are good offers on the card. The statements are also clear and sent to me on time. In all no hassles.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 15, 2019
    • ICICI Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      ICICI Bank is good overall in the credit card offers and deals. The customer services and response is good. The credit limit is good and there are no hassles while using the card. The statements are also sent to me on time. In all there is no inconvenience.
      Was this review helpful? 0
      , jaipur
      Reviewed on Jan 15, 2019
    • HDFC Bank Credit Card
      "Average"
      0.5 4.0/5 "Great!"
      I bank with HDFC Bank for the credit card as well. The net banking is no user friendly as could not make the payments with ease. The credit limit is of 1.5 Lakh. They could provide better services online and offline when compared to the other banks.
      Was this review helpful? 0
      , haridwar
      Reviewed on Jan 15, 2019
    • ICICI Bank Credit Card
      "Overall good experience"
      0.5 4.0/5 "Great!"
      I hold a credit card with ICICI Bank and the customer services are good. The credit limit is fine and there are no hassles while using the card. The offers are good and the charges are normal too. The card is acceptable every where. Overall no issues.
      Was this review helpful? 0
      , haridwar
      Reviewed on Jan 15, 2019
    • ICICI Bank Credit Card
      "Hassle free"
      0.5 4.0/5 "Great!"
      ICICI Bank has also offered me a credit card and the benefits are good. The card is accepted every where. The credit limit is good and there are no issues in the overall experience. The statements are also on time and till date I faced no issues.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 15, 2019
    • SBI Cards Credit Card
      "Till date no hassles"
      0.5 5.0/5 "Blown Away!"
      I bank with State Bank of India, and the customer services are good. They are responsive as well. The credit limit is good too. There are good benefits and offers on the credit card. Overall till date it has been a smooth process. The billing is also good.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 15, 2019
    • SBI Cards Credit Card
      "Good overall"
      0.5 5.0/5 "Blown Away!"
      I bank with State Bank of India for the credit card and the process is excellent. They have given me a good credit limit and there are no issues till date. The billing is a also clear and the statements are sent to me on time as well. It has been nice to bank with them.
      Was this review helpful? 0
      , jorhat
      Reviewed on Jan 15, 2019
    • SBI Cards Credit Card
      "Good in all"
      0.5 4.0/5 "Great!"
      My credit card is with State bank of India. The bank has been good till date in the overall services. The transactions are smooth and I have not faced any inconvenience while using the card. The statements are also sent to me on time and it is clear.
      Was this review helpful? 0
      , haridwar
      Reviewed on Jan 15, 2019
    • YES Bank Credit Card
      "Features are good"
      0.5 5.0/5 "Blown Away!"
      YES Bank is good overall in the credit card services. The online banking is good and there are no issues to complete my transactions. The credit limit is to my satisfaction too. The statements are clear and sent to me on time. The overall process is also good.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 15, 2019
    • Standard Chartered Bank Credit Card
      "Experience is good"
      0.5 5.0/5 "Blown Away!"
      I hold a credit card with Standard Chartered Bank. The customer services and response is good. There are no hassles in the process. I am okay with the features of the card and the credit limit is fine. Overall it has been good and the billing is good too.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 15, 2019
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