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Loan Against Credit Card: A Guide to This Easy Credit Facility
- Published on: 11 Dec 2023
A loan against credit cards is a quick and convenient way to access funds when you need to bridge a monetary gap. Many credit card issuers allow you to avail of an instant loan on the unutilised credit limit of your credit card. The best part about these loans is that you don’t need additional paperwork or follow a long-drawn application process.
To know more about getting a personal loan against credit cards, read on.
When you need to make urgent payments, like paying school fees, medical expenses, EMIs and more, opting for a loan against a credit card helps you access quick funds. 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. You can get a loan amount based on the unutilised credit limit of your card.
A personal loan against credit cards allows you to enjoy various advantages. Some of these benefits include the following:
Many credit card issuers provide pre-approved offers of a loan against credit cards, allowing you to enjoy instant sanction and quick disbursal.
As credit card companies already have your personal and financial details, they require you to go through minimal documentation, if any.
While the loan amount depends on various factors, you can most likely get a higher amount if the unutilised credit limit on your card is higher.
Opting for a loan against credit cards allows you to get a percentage of your unused credit limit as the loan amount.
These loan offers also enable you to opt for convenient tenure options. This way, you can repay during a course of time that works best as per your financial capabilities.
Compared to credit card interest rates, which can even reach up to 50% p.a., these personal loans have much lower interest rates. So, choosing them can be a smart way to keep your borrowing cost low.
Since these loans are based on your credit card limit, lenders don’t require you to provide any other asset as collateral.
The eligibility criteria to get a loan against credit cards is based on your issuer and type of card. However, you usually need to fulfil certain conditions to qualify, including the following:
Here are some steps to follow when you opt for a loan against your credit card:
While you can opt for an instant loan against credit cards without burdening yourself with paperwork, make sure you are aware of the fees and charges. Check if any processing fees applies and ensure you can repay within the chosen tenure to avoid paying high interest penalties.
If you want a higher loan amount with an affordable repayment structure, consider Fibe’s Instant Cashl Loans of up to ₹5 lakhs. Along with a simple application process, you can also benefit from affordable interest rates and minimal documentation. Download the Fibe Personal Loan App to get funds and fulfil your financial needs immediately!
You can apply for an instant loan against credit cards by contacting your credit card issuer. You can apply for a new loan against the unutilised credit limit on your card, provided you meet the required eligibility criteria.
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 loan facility.
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.
