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What Is A Loan Against Credit Card? Its Advantages And Top Banks Offering Them

By Author: Neha Sharma
Total Articles: 135

Emergencies are always just around the corner and you can never be truly prepared to handle them. Often, such situations will force you to spend a great deal of money. However, you may not have such huge sums lying around in your bank account. At such a time, a loan is your best option. However, most loan application processes are long and strenuous.

Therefore, you should consider a loan against credit card at such times.

What is a loan against credit cards?

If you require money and own a credit card, you can apply for a loan against the card. When you apply for such a loan, your bank will provide you with the required amount of money, which you would then repay through the credit card bills. Some people confuse loan on credit card with cash withdrawal using the card, but these two are different.

In case of cash withdrawal using the credit card, you can collect cash from a nearby ATM using your credit card. The rate of interest charged on such a withdrawal is generally high. However, in the case of loan against a credit card, the interest rates are lower. Furthermore, the money lent is generally greater than the withdrawal limit on the card.

Benefits of loan against credit card

1. The lower rate of interest than most other loans, including the interest charged on cash withdrawal
2. No document required for application of the loan. This is because, all necessary information is already in the possession of the lender, as you are using their credit card for taking the loan.
3. When you take a loan against a credit card, you get the money instantly. This feature is greatly handy for people who require the money immediately.
4. You do not need to visit the bank to apply for the loan. Instead, you can apply for the same from anywhere at any time.
5. The processing fee for such a loan is usually lower than the fee charged for the processing of other kinds of loans
6. You do not require collateral for loans against credit cards. Therefore, the procedure is simpler to handle.

Banks offering loans against credit card in India

If you are looking for loans against your credit card in India, you have many options. You can avail such a loan if you have credit cards from HDFC Bank, Citibank, HSBC Bank and ICICI. HDFC Bank offers Insta Jumbo loans against their credit cards. If you apply for such a loan against your HDFC Bank credit card, the money lent will be credited to your account within 60 minutes. Thus, the processing of the loan is extremely fast as well.

Author bio:
Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about loan on credit card. Through her work, she mentions its benefits and the top banks offering them

Total Views: 33Word Count: 472See All articles From Author

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