Loan on Credit Card: Now Get Instant Loan Against Credit Card

A credit card is a handy tool to fulfil your short-term goals with the help of a pre-approved credit limit. If you are in need of a higher amount to meet an emergency and need more time to repay it, you can opt for a loan on a credit card. 

Similar to other borrowing options, it credits your outstanding credit limit to your bank account, which you can repay in EMIs. To know more about getting a personal loan against credit cards, read on.

Know What is a Credit Card Loan

A credit card loan is a seamless and convenient option in case you need a higher amount quickly with less paperwork. You must be eligible for this type of loan and credit card companies provide it faster. It comes with flexible repayment terms and the amount depends on your unused credit card limit. 

How a Loan Against Credit Card Works

In case of urgent financial requirements for bigger amounts, you can opt for this loan through an easy and seamless facility. Repayment is easy via EMIs, which include the predetermined interest rate on credit card loans. This facility requires minimal to zero documentation because the card issuer already has your details. 

Hence, many such credit card offers are pre-approved, aiding in quick disbursal. The loan amount you receive is dependent on the unused limit of your credit card. With every repayment, your credit limit is restored, making it available for other transactions using the card. 

How to Apply for a Loan Against Credit Cards

Here are some steps to follow when you opt for a loan against your credit card:

• Visit the official website of your credit card lender to check the eligibility criteria and your mobile app/online account for any pre-approved offers you may have 
• Fill in the application form and submit the required documentation, if any
• Choose a suitable repayment option and tenure 
• Read the agreement carefully and sign the document before you proceed
• After your application is approved, the loan amount will be credited to your bank account and you can withdraw amounts as per your needs

When you are applying for a credit card loan, be sure about the fees and applicable charges. Make sure you are aware of them all to avoid high interest dues or penalties.

Pros of Opting for a Loan Against Credit Cards

A personal loan against credit cards allows you to enjoy various advantages. Some of these benefits include the following:

• Available Instantly

Many credit card issuers provide pre-approved offers of a loan against credit cards. This allows you to benefit from a quick disbursal, so you can meet emergencies easily. 

• Minimal Documentation

Credit card providers have your personal and financial details, so they require less documentation.

• Ample Loan Amount

While the loan amount depends on various factors, you can most likely get a higher amount if your available credit limit is higher.

• Puts Credit Limit To Good Use

Opting for a loan against credit cards allows you to get a percentage of your unused credit limit as the loan amount.

• Flexible Repayment Options

These loan offers also enable you to opt for convenient tenures. This way, you can repay across a course of time that works best as per your financial capabilities.

• Lower Interest Rates

Compared to credit card interest rates, which can even reach up to 58% p.a., note that the interest rate on credit card loans is lower. So, choosing them can be a smart way to keep your borrowing costs low. 

• No Need for Collateral

Depending upon the limit and type of credit card you have, this loan does not require you to risk any collateral. 

Who is Eligible to Get a Loan Against Credit Cards?

To get a loan against your credit card, the eligibility depends upon your lender and the type of credit card you have. You usually need to fulfil certain conditions to qualify, including the following:

• Your credit card account must be active 
• It must be in good standing
• The card must have enough unutilised credit limit to cover the entire loan amount
• You must have a stable income source with a good credit score
• Your age must be over 18 years, as you can’t get a loan on an add-on credit card

If you want a higher loan amount with a reasonable repayment option, consider Fibe’s Instant Cash Loans of up to ₹5 lakhs. Along with a simple application process, you can get affordable interest rates with less documentation. Download the Fibe Personal Loan App to get funds and fulfil your financial needs immediately!

FAQs on Loan Against a Credit Card

Is it possible to opt for a loan on a credit card?

Yes, many lenders allow credit cardholders to apply for a loan against credit cards. You can contact your credit card issuer to inquire if they offer such a facility.

How good is a loan on a credit card?

With a loan on a credit card, you can enjoy instant approval, quick disbursal, easy repayment options and ample funding based on your unutilised credit limit.