Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Personal Loan BYTES FROM OUR KITCHEN

    Loan against Credit Card

    Loan against credit card is a kind of personal loan. If you are using a credit card, you can easily apply for an instant loan against your card. The only difference between a personal loan and a loan against credit card is that a Personal Loan takes a couple of day to get approved while a loan against credit card is pre-approved. Unlike a personal loan, a loan against credit card does not require documentation. A personal loan normally needs a few documents in support of your eligibility. Since loan against credit card needs no documentation, it is another quickest and easy option to raise finance to cover your financial needs. Loan against credit card is an unsecured loan like same day cash loans.

    Now, what is a credit card? It is payment card issued by banks to help you shop for things online and offline. Also, the card can be used for cash withdrawal and balance transfer. These cards are accepted worldwide in millions of places and stores. With a credit card, you can borrow money from banks to pay for countless number of things and services. Any bank would issue a credit card based on the agreement between you and the bank. As per the agreement, you promise to return the borrowed amount to the bank on specified date decided by your bank. Normally, banks don’t charge interest on your borrowed amount as long as you pay it back on due date or before it. But, if you fail to pay your credit card bill on time, banks will charge interest on your outstanding balance.

    Often we confuse between loan against credit card and cash withdrawals on credit cards. By loan against credit card, we tend to think that bank will increase the credit limit on credit card and one can withdraw cash through credit cards. But, it’s is a misconception. Banks actually provide you with a loan against your existing credit card. Loan against credit card is a best option for those who need immediate cash to deal with urgent and unpredictable personal situations. You opt for such loans when the cash withdrawal limit on your credit card is not sufficient to fund your financial requirements. Besides, cash withdrawals on your credit card come with higher rates of interest. But, banks charge lower rates of interest on loan against credit card. Also, the loan is disbursed quickly with no documentation. The amount received as loan is offered to you in the form of a demand draft or through a direct transfer to your bank account. Given that low interest is charged on loan against credit card than cash withdrawals on credit cards, a loan against your credit card sounds economically viable. That’s why many people opt for loan against credit card. Loan against credit card is also known as pre-approved loan or pre-qualified loans.

    Many banks in India like HDFC Bank, HSBC Bank, Citibank and ICICI offer loan against credit card. HDFC Bank offers Insta Loans and Insta Jumbo loans against your HDFC Bank Credit Card. These are preapproved loans. You can easily apply for these loans. The bank offers immediate disbursal of the amount once the loan is approved. An Insta Loan helps you receive fund within the credit limit of your HDFC Bank Credit Card. On the other hand, an Insta Jumbo Loan offers you fund over and above the credit limit of your HDFC Bank Credit Card. The amount gets credited to your savings account in 60 minutes.

    Loan against Credit Card Eligibility

    You are eligible to get a loan against your credit card if you fulfill the following conditions:

    • Normally, banks offer loan against credit card for both existing and new customers. However, banks like HDFC offers it for existing HDFC Credit Card holders only.
    • Having a credit card account is a must to get this loan.
    • Also, you need to have a good credit history. Banks offer loan against credit card provided you have good record of credit repayment and a high credit standing.
    • A person with high and improved income level can also apply for this loan as well as top up loans against credit card. Improved income level helps you transfer your credit card from silver to gold category, and this increases your loan eligibility.

    However, before applying for a loan against your credit card, you can also check your eligibility by using the following means – net banking, phone banking and visiting your nearest branch. The amount you receive as loan is dependent on the credit limit on your card which is again dependent on your income, repayment history and documentation. Normally, the amount of loan against your credit card tends to be higher than the cash withdrawal limit on your credit card. Your bank may block the cash withdrawal limit on your credit card, if the loan taken exceeds the cash withdrawal limit. You will not be able to use your card to withdraw any cash until the loan amount comes down and falls below the cash withdrawal limit.

    Documentation required for Loans on Credit Card

    No documentation is required to apply for a loan against your credit card. Because, in order to apply for a loan against credit card, you have to have a credit card. So, when you apply for a credit card, you submit all required documents to your bank. Based on those documents that you have already submitted and the relationship you build with your bank, the bank can sanction a loan against your credit card. Normally, a bank asks for the following documents when you apply for a credit card:

    • A copy of your address proofs such as recent electricity bill, telephone bill, driving license, passport etc. (Any of these documents).
    • A proof of your identity such as PAN card, voter ID card, driving license, passport etc. (Any of these documents).
    • A few recent passport size photographs.
    • Last 3 months’ salary slips for salaried employees.
    • A copy of office ID card – for salaried employees.
    • Self-employed individuals need to submit an attested copy of the latest ITR (income tax return) and a copy of PAN card.

    Loan against Credit Card Interest Rates

    Personal Loan Interest rates is India start from 12% and go up to 20% which is slightly higher than the interest rates charged on other loans like car loan, home loan etc. Loan against credit card is also a kind of personal loan, and so the interest charged on loan against credit card is slightly higher. For example, HSBC Bank charges between 15% to 21% interest on loan agonist credit card. Also, the rate of interest on loan against credit card varies based on the type of card (gold, silver and platinum) you have and your credit profile. Therefore, maintaining a good credit profile is very important as banks considers your credit history before quoting a particular interest rate on your loan.

    Features and benefits of Loans against Credit Card

    • Get instant cash whenever you need.
    • Enjoy attractive and reduced rates of interest than interest on cash withdrawals on credit card.
    • No documentation required.
    • You can apply for it online or by simply making a telephone call.
    • Enjoy fast processing and quick disbursal upon approval.
    • You can apply for it from anywhere at any time.
    • Loan against credit card is a type of unsecured personal loan.
    • Low processing fee is charged.
    • You can repay the loan in monthly installments. Monthly EMIs will be billed to your credit card every month.
    • Loans against credit card are normally sanctioned for a maximum tenure of 24 months.
    • Interest rates on a loan against credit card vary based on the type of credit card possessed by the applicant.
    • Enjoy flexible loan tenures.

    FAQs

    What do you mean by a credit limit?

    Credit limit refers to the maximum amount you could spend by using your credit card. Your bank determines the credit limit of your card by considering details such as your annual income, credit history and repayment capacity. Banks also revise your credit limit as per your previous year’s record in terms of spending and repayment. If you pay your credit card bills on time and maintain a good relationship with your bank, the bank may increase your credit limit. But, if make delayed payments or postpone your payments regularly, and don’t maintain a steady relationship with the bank, it may revise your credit limit downward.

    What is a loan against credit card?

    It is a kind of unsecured personal loan which you can take a loan with the help of your credit card. Banks offer this loan to help you resolve your urgent financial needs.

    Do I need to have a good credit history to apply for a loan against credit card?

    Yes, it is very important to maintain a good credit history to apply for a loan against your credit card and get discounted rates of interest on your principal amount.

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

    Yes, banks do charge processing fee for loans against credit card. However, you need to pay a very nominal amount as processing fee.

    What are the documents I need to submit to apply for a loan against credit card?

    No, you don’t have to submit any new documents to apply for a loan against your credit card. It is zero documentation process.

    Can I apply for a loan against credit card online?

    Yes, you can apply for it online by using net banking. Also, you can apply for it by using phone banking or visiting your branch.

    Is there any difference between interest rates charged on cash withdrawals on credit card and loan against credit card?

    Yes, there is a difference in interest charged on cash withdrawals on credit card and loan against credit card. Banks normally charge higher rates of interest on cash withdrawals on credit card than a loan against credit card.

    Can new customers can avail a loan against credit card?

    Yes, new customers can also avail a loan against credit card along with existing customers of a bank. But, having a credit card is mandatory to get a loan against credit card.

    Loan against Credit Card Reviews

    • Bank Bazaar Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The helpline number was not easily approachable whenever I call the bank bazaar customer service, it does not connect with the representative. I have been using it for 6months. Earlier I took my credit, the process was simple. The mobile app is convenient to check the credit score and have no issues.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 18, 2019
    • HDFC Bank Personal Loan
      "Better"
      0.5 4.5/5 "Excellent!"
      There was delay in the loan process and HDFC have taken around one month. The rate of interest and charges are little bit high compared to others. I have submitted the documents online and also to the executive. I can do pre closure with extra charges and part payment can be done after one year. The loan duration is 2 years.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 18, 2019
    • ICICI Bank Personal Loan
      "Its Good"
      0.5 4.0/5 "Great!"
      I approached ICICI personal loan through online channel, ICICI taken care and disbursed the amount within two to three weeks of time, But I felt interest rate is good in Tata capital as compared to ICICI. But still I recommend ICICI bank its good.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • Axis Bank Personal Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this loan some time back and i had foreclosed this loan a long time back. The overall experience with them has been quite good where the interest rate with them has been nominal when compared with the market rate and there has not been any foreclosure charges with them.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • HDFC Bank Personal Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      It has been quite a good experience i had with this loan and the loan amount which they had provided has been sufficient as well. The interest rate which they where offering has been nominal with the market rate, and there is some pre closure charges with them and there has also been some processing fee with them.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • Bank Bazaar Personal Loan
      "Quick Wind for the financial products"
      0.5 5.0/5 "Blown Away!"
      I never seen such kind of support any where like Bank Bazaar, whenever I update any request I get reply through msg or mail. Its a right path or helping source for the people to take the banking products on the time schedule. The customer support is very nice and helpful.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • Tata capital Personal Loan
      "Good Professional Service"
      0.5 5.0/5 "Blown Away!"
      When I browsed the online channel, Tata capital is the one having less interest with zero processing fee. That is the reason I took this personal loan from them. The loan process was quite good, the processing time is less. The interaction between me and executive was professional.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • Bank Bazaar Personal Loan
      "Better"
      0.5 4.0/5 "Great!"
      Although I am not a frequent user of the site, Whenever I need any loans or card that time have visit their website. The website is fine enough. The customer service and response was better. Am using it approx for 6 months. Once have checked the credit score and loan process was simple.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • Early Salary Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I took my personal loan from Early Salary through online portal. Everything was fine but executive said will come and collect the documents but nobody turned up . They said if I have refer my friend and will get discount but have not got any discounts. The rate of interest and charges are nominal.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • HSBC Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been holding my personal loan with HSBC bank, ,they have given me sufficient loan amount was sufficient for me, and the rate of interest is very nominal compare to other in the market . There are no hidden charges they have charged me apart from EMI.
      Was this review helpful? 1
      , mumbai
      Reviewed on Jan 18, 2019
    • Kotak Personal Loan
      "Average"
      0.5 1.0/5 "Really Bad"
      I have taken a personal loan from Kotak Mahindra Bank and it was closed in the year of 2018. My experience is not good, have not received NOC on time. They need to improve the customer service. The rate of interest is more compared to others. The documentation process was easy but foreclosure is very difficult.
      Was this review helpful? 1
      , pune
      Reviewed on Jan 18, 2019
    • Bank Bazaar Personal Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      The customer service and response was good. I have been using bankbazaar.com for the first time and it was recommended by friend. The process was simple and faster. The mobile application is convenient and easy to compare with the banks. I have checked the credit score.
      Was this review helpful? 1
      , pune
      Reviewed on Jan 18, 2019
    • Tata capital Personal Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have applied my personal loan in Tata Capital through online. The rate of interest and charges are nominal. I have received 2.7L excluding processing fee. The loan duration is 5 years. The documents are collected by executive as well as submitted online. They took max 8 to 9 days to deliver the loan.
      Was this review helpful? 1
      , pune
      Reviewed on Jan 18, 2019
    • Bank Bazaar Personal Loan
      "Its Convenient"
      0.5 5.0/5 "Blown Away!"
      Its a good experience I had with Bank Bazaar, the entire loan process was smooth I don't want to anywhere. I got the door step service from the bank, the customer support guided well and helped me out through the process. The information is useful to compare the products.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • Tata capital Personal Loan
      "Good Experience with Tata Capital"
      0.5 5.0/5 "Blown Away!"
      I got best deal from Tata Capital, the customer support is proactive to process the loan application. But the loan disbursement got delay it should be faster. I got the better interest rate and its zero processing fee from the Tata Capital disbursement.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • HDFC Bank Personal Loan
      "Interest rate should be standard"
      0.5 4.0/5 "Great!"
      I am not happy with HDFC, comparatively the rates are bit high. Its okay for me, the processing fee is also higher in HDFC, They told some interest but I got some other interest rate. I want to discuss with them and after august it will be one year then I close it.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 18, 2019
    • ICICI Bank Personal Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      That was better experience, interms of rate of interest. ICICI bank agents are proactive they came to my place and collected the documents and done the process. Then I didn't interact with them. I got the better deal from ICICI on the personal loan.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 18, 2019
    • Bank Bazaar Personal Loan
      "Good customer support and satisfactory"
      0.5 5.0/5 "Blown Away!"
      The quick on their work, whatever I approached they helped me out. I could check all the information based on the requirement. Its a good customer support I can view all the banking options. I am getting promotional mails through the link I have raised the request for the credit card.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 18, 2019
    • Citibank Personal Loan
      "Rate of interest should be reduced"
      0.5 4.0/5 "Great!"
      Citi bank rate of interest is too high for the amount of Rs. 3 lakhs, they have taken some processing fee from the disbursement but it was quite nominal. The documentation process was smooth, on the expected time I got the loan amount from the bank.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 18, 2019
    • Early Salary Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The rate of interest and charges are nominal. I like the process which was much easier to proceed the personal loan. They did not required any documents and executive came for verification then loan amount was processed. I took 10K and it was paid through online.
      Was this review helpful? 1
      , chennai
      Reviewed on Jan 18, 2019
    Common Loader Icon

    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.

    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.