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How To Take A Loan On Credit Card?
A credit card is one of the most popular modes of payment today. It is a plastic card that enables the holder to shop up to the particular credit limit of the card. The bank allows you to borrow interest-free up to the credit limit each month for different transactions done both online and offline.
However, that is not all that a credit card can be used for. It is also possible to get instant loans on credit card in case of emergencies when quick cash infusion is required. This cash can then be repaid over time. A loan on credit card is also called a loan against credit card. This is not the same thing as cash withdrawal from the credit card. Cash withdrawal on credit card results in a reduction in available credit limit whereas a credit card loan is an actual loan against the credit card.
Features of a credit card loan:
• These loans are quick loans on credit cards. Once applied for, they are instantly approved and the cash gets transferred to the bank account of the applicant.
• The repayment of a credit card loan is in the form of EMI which is billed in the regular credit card statements from the month it is borrowed. Interest is charged on the amount outstanding.
• There are no documents required for instant loans on credit card. As such, each cardholder is automatically approved for a credit card loan depending on a good credit relationship.
• Some bankers offer a system where the loan instalment amount is debited from the bank account of the cardholder instead of reducing the credit limit.
How to apply for instant loans on credit card?
• Internet or Mobile Banking:
You can apply for instant loans on credit card via Net Banking of the respective bank. You can also apply via the mobile banking application of the bank
• Customer care:
Another way to apply for a credit card loan is to call up the customer care centre of the bank. Alternatively, you can also talk to your relationship manager to get it processed.
• Visit the bank branch:
Visiting the bank branch and filling out a form is another way to apply for quick loans on credit card. The bank branch will process the loan, and the funds will get credited to your account.
A credit card loan is like a personal loan, without the need for documents. However, before applying for such a loan, it is better to inquire about the rates of interest from your bank and only apply for this in case of extreme emergency when funds are quickly required.
Author Bio:- Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about credit card loan. Through her work, she has explained how to take loan on credit card
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