Best Way to Get Loan on Credit Card
Last Updated : Oct. 7, 2020, 3:54 p.m.
Emergency comes uninvited and demands something out of the routine to get over. The point is relevant more in the case of financial emergency when you require good cash to overcome the same. Yes, the talk is about the instant loan that you would need when such a situation does arise in your case. However, with the help of a credit card, things can turn your way. There are banks that offer you a loan on credit card. It’s actually a pre-approved loan based on your credit card repayment track. There’s no need to submit any document to access such loans as they come pre-approved.
List of Banks That Offer Loan on Credit Card
Banks such as State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and a few others provide a loan on credit card. Let’s check out the credit card backed loan offers from different banks now.
SBI Card Encash
Feeling for extra cash to fulfill your needs? Get started with SBI Card Encash, a scheme by which you get funds for holidays, education, marriage, etc. The loan is applicable to SBI credit card holders, subject to meeting the eligibility criteria.
Rate of Interest
As applicable at the time of offer.
Fees & Charges to be Debited
Processing Fee – 2% of the loan amount, subject to a minimum and maximum of INR 499 and INR 3,000, respectively
Foreclosure Fee – 3% of the pre-closed amount to be paid on loan foreclosure
How Much Loan is Expected?
The pre-approved loan amount, which would be over and above your credit limit, would be provided by a cheque to your residence within 3-5 working days.
Repayment Period
Choose from the repayment tenures of from 12, 24 and 36 months
How to Apply for SBI Card Encash?
You can choose from the following to apply for SBI Card Encash.
- SMS Encash to 56767
- Dial 39020202 or 18601801290
- Login to SBI Card Online account
Insta Loan – HDFC Bank
The bank, with a view to fulfilling the instant cash needs of the most, gives you Insta Loan against your HDFC Credit Card .
Rate of Interest
It will be decided by the bank on the basis of how you have fared in card payment. A smooth payment record can lead to a reduction in the interest rates.
Fees & Charges to be Debited
The EMI amount will be added to the credit card statement, showing the total dues as well as the minimum due. The interest component of the EMI would also bear Goods and Services Tax (GST) at the applicable rate.
How Much Loan is Expected?
The loan will be based on your income, repayment potential, besides other factors. It will get disbursed to your HDFC Bank Savings account or be sent to you via a demand draft drawn in favour of your name as would be shown on HDFC Bank Credit Card records.
Repayment Tenure
You are given an option to choose your tenure
How to Apply for HDFC Bank Insta Loan?
You can apply for the same on HDFC Bank’s official website. All you need to do is to get to ‘Loan on Credit Card’ segment, click on Apply Online at the bottom and mention the details correctly before submitting it finally. The bank will go through your application and give a nod upon a successful verification. You can even visit the nearest bank branch to apply for the same.
Axis Instant Loan
Enjoying your Axis Bank Credit Card journey? You can make it even more rewarding by having a loan on the basis of the card. Yes, Axis Bank offers ‘Instant Loan’ to its credit cardholders seeking a loan to meet their instant needs. It’s a pre-approved loan based on the basis of repayment track.
Rate of Interest
The interest rate will vary between 15%-21% per annum on a reducing balance basis, based on the profile of the customers.
Fees & Charges to be Debited
Processing fee – 1.5% of the loan amount or INR 500, whichever is greater
Foreclosure fee – In case you pre-close the loan before the original tenure, a sum equivalent to 3% of principal outstanding at the time of foreclosure or INR 300, whichever is more, along with applicable Goods and Services Tax (GST) would be levied.
How Much Loan is Expected?
The loan amount would depend very much on your income, repayment potential, and your Axis Bank card repayment track. You will get the loan credited to your Axis Bank Savings Account.
Repayment Tenure
You can be multiple repayment tenure options to choose from.
How to Apply for Axis Instant Loan?
You can apply by either of the following modes.
- A missed call to 18004190230
- SMS ILW to 5676782
- A dial to 18605005555 or 18604195555
ICICI Bank Personal Loan on Credit Card
ICICI Bank provides a personal loan to its credit cardholders on the basis of spends, transaction pattern as well as the payment history.
Rate of Interest
The rate of interest would depend on the quantum of finance to be disbursed, the repayment track, credit score, besides other factors.
Fees & Charges to be Debited
As applicable by the bank
How Much Loan is Expected?
A maximum of INR 10 lakh can be granted and disbursed to your ICICI Bank Savings Account . Those not having a savings account at ICICI can get the funds transferred to other bank’s account via NEFT. Even a demand draft can be issued to them. If you want funds via NEFT, send the scanned copy of cancelled cheque or bank statement showing IFSC Code to [email protected]. While the fund transfer can take 3-4 working days, demand draft can be received within 11 working days.
Repayment Tenure
You can be given a maximum of 5 years to pay off the loan.
How to Apply for ICICI Bank Personal Loan on Credit Card?
You can apply by choosing from the following modes.
- Type CASHIN WP and send it to 5676766 via SMS
- Log in to Net Banking or iMobile and apply in ‘Credit Card’ section
- Dial customer care executives on 18002003344
- Go to the nearest ICICI Bank branch
Kotak Mahindra Bank Personal Loan on Credit Card
Having a Kotak Mahindra Bank Credit Card can help you tide over the emergencies with the help of a suitable personal loan . It’s a pre-approved loan which is given on the basis of credit card payment track.
Rate of Interest
The setting of interest rate would depend on the loan amount, the card payment track, etc.
Fees & Charges to be Debited
As applicable by the bank
How Much Loan is Expected?
As much as INR 5 lakhs can be disbursed to your Kotak Mahindra Bank or any other savings bank account instantly.
Repayment Tenure
You are given a flexible repayment tenure of 6-48 months to pay off the loan.
How to Apply for Kotak Personal Loan on Credit Card?
You can choose from the below application modes.
- SMS PLCC to 5676788
- Call customer care number – 18602662666
- Login to net banking, go to the ‘Credit Card’ tab and choose ‘Loan on Card’ option
- Download Kotak Mobile Banking App from Play Store or App Store, log in, go to ‘Credit Card’ tab and click on ‘Apply on Card’ section
