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Things You Need To Know About Credit Card Loans

A loan against a credit card is one of those many facilities that makes life easier.

Updated:May 13, 2019, 11:45 AM IST
Things You Need To Know About Credit Card Loans
A loan against a credit card is one of those many facilities that makes life easier.

Imagine you have an emergency that requires a huge amount of money. Your savings account does not have enough. You have a credit card but the credit limit will not cover the cost you need. In such a case, you can easily avail a loan against your credit card. It is akin to a personal loan, but without all the hassles generally getting a loan would entail. You don’t really need any documentation, and is generally approved and transferred to your account the same day.

Here are a few things that might help you better understand how credit card loans work.

Why get a credit card loan?

It is in case there is an urgent financial need, and you need fast cash.

What will I require to get a credit card loan approved?

While there is no need of any sort of documentation required with a credit card loan, issuers do generally require to check if you have good credit history. If there are no issues and you have been repaying all your credit card payments on time, they might even offer discounted interest rates.

How much will I be charged?

As is with every bank, there is a general processing fee that is applicable when a personal loan is asked for. Though there is no need to worry as the processing fee amounts are next to nothing.

How can I apply for a credit card loan?

You can try the old school way and approach your bank for the same. But why go through the hassle when smart banking makes it all easier? You can directly apply for it online, or a call to your service provider should be enough.

What are the interest rates charged on my personal loan against a credit card?

Surprisingly, the interest rate charged on loans against credit cards are way lesser than how much you will be charged if you withdraw a certain amount of cash on your credit card, i.e. considering your cash withdrawal amount is as high.

Can I apply for a credit card loan if I don’t hold an account with the bank?

While holding an account with the bank is not mandatory, you compulsorily need to hold a credit card of the bank in order to be eligible for a credit card loan.

Is the repayment of the loan similar to repaying my credit card payment?

It’s really easy to repay the loan payments as you can convert the amount into EMIs, which will be directly billed to your credit card bill as per your billing cycle.

With the advent of new products and smart banking, there are likely to be no financial emergencies that cannot be taken care of. A loan against a credit card is one of those many facilities that makes life easier. For more details, you can visit your nearest bank or speak with your credit card issuer.

To know more, click here.

This content has been created in association with YONO SBI

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