Are you facing financial difficulties that require cash immediately but need the means to obtain it? One relatively-less-popular solution you can fall back on in such cases is taking a personal loan on your credit card to meet emergency cash needs.
If you have a credit card and have a credit card, it’s simple to get personal loans on the credit card if you require cash immediately. Credit card loans are pre-approved secured loans generally requiring no paperwork. Therefore, they are the most convenient and fastest way to obtain funds to help manage your financial obligations.
This article will take an in-depth look at personal loans using credit cards, their functioning and features that banks offer, and more.
Personal Loans on a Credit Card differ from withdrawing cash from your credit card.
One of the most common misconceptions is that when you apply for personal loans on the card of your choice, your Bank will raise the credit limit on your card, and you can withdraw the money through the card. But that’s not the situation. Banks offer personal loans to your credit card in exchange for the credit card you already have. The lender determines the amount you can get.
There’s another alternative that you can make use of to receive money instantly with the credit card you have. It comes from the cash withdrawal option, which comes on the card. The maximum amount you can withdraw is determined and usually announced when you issue the card. It is possible to consider cash withdrawals when the amount required is lower than.
Top Banks Offering Personal Loans on Credit Cards
Numerous banks provide the option of personal loans with credit cards. The best banks that offer confidential loans with credit cards include:
- ICICI Bank
One of the giant banks in the private industry across the nation, ICICI Bank provides an assortment of friendly customer services. It also provides personal credit card loans to ICICI Bank customers. The maximum loan amount offered by the Bank in this program can be Rs.10 Lakhs with a flexible time frame of sixty months(5 5 years). The amount of the loan will be transferred directly to your savings account. Additionally, the most appealing aspect is that the process needs minimum documentation.
- HDFC Bank
HDFC Bank offers personal loans for credit cards too. Personal loans are pre-approved and will be deducted from your credit limit. HDFC Bank offers a maximum loan of Rs.5 Lakhs with an interest rate of 1.25 percent. The Bank provides a variety of repayment terms ranging from 48 months or four years. Since the loan has been approved, it requires minimal documentation, and the loan will be debited from your savings account in minutes.
- IDBI Bank
IDBI Bank offers credit on your credit card, called the General Credit Card Loan. The available loan amount will be Rs.50,000 while the max amount is Rs.5 Lakhs. The term of the policy is five years. The interest rate is tied to the rate at which the institution is based. People engaged in non-farm entrepreneurial businesses are qualified to apply for this loan.
- Kotak Mahindra Bank
You can avail of personal loans with the Kotak Mahindra Credit card from Bank for as much as Rs.5 Lakhs with attractive interest rates. The repayment period ranges between 6 months and four years. After the loan has been approved, the loan amount is immediately transferred to your savings account. Customers with good credit scores, a history of transactions, and a repayment history are approved for an individual loan using your credit card.
- IndusInd Bank
IndusInd Bank offers loans to credit cards that require no documents. Pre-qualified loans are provided to you by way of using your credit card. You can obtain personal loans against the credit limit or even a loan that exceeds your credit limit based on your needs. The credit card offer flexibility in repayment terms and competitive interest rates.
What are the benefits of a personal loan on a credit card?
Different banks have different options for loan programs loans for credit cards. Here are a few most common characteristics of a loan made on credit cards.
- There is no need to submit additional documentation, as most personal loans made on credit cards have been pre-approved. They are processed and paid in a short time.
- You’ll be able to transform and manage your costly purchases into affordable installments through EMI programs provided by issuers.
- Certain banks also provide personal loans on other bank credit cards by way of Balance Transfer for EMI which allows you to transfer the balance of different credit cards onto one credit card and then pay the EMI.
- Banks also allow you to take out a personal loan that is within or above the credit limit.
