Be it urgent bill payments, online purchases, tickets to your favorite artist’s concerts, or travel tickets to your dream destination, a credit card can be useful for all these payments. Credit cards are a very convenient method for all your regular payments and also any special purchases. A credit card is issued by a financial institution and is a thin piece of metal or plastic. This card lets you borrow funds from within a pre-approved limit that can be useful to pay for your purchases and pay bills.
The limit is set by the financial institution based on the credit score and credit history of the applicant. An applicant with a higher credit score can have a higher limit set on their credit card. Credit cards can be swiped to make payments or be used for online transactions. You must make sure to repay the borrowed amount and the credit card bills within the stipulated time period. This will help you maintain a high CIBIL score and avoid any penalties.
Although the major use of credit cards is for making purchases and paying bills, that is not their only purpose. Another major benefit of a credit card is the loan you can borrow against it. Yes, you read it right. You can avail of a credit card loan. If you are wondering what a credit card loan is or how you can apply for it, then this article is going to be your ultimate guide. In this article, we will be looking at what a credit card loan is, how to avail of a credit card loan online, credit card loan interest rates, and the credit card loan EMI calculator. By the end of this article, you will have all you need to know about a credit card loan and will be able to avail of the same for yourself.
In this article, we will be looking at the following sections and you can read in-depth about the following topics:
By the end of this article, you will be able to apply for a credit card loan without any hassle. In case you have any further doubts, we will be answering a few frequently asked questions for your convenience.
What Is Loaney?
In the past few years, the internet has become a place full of wonders. It is a treasure full of services and facilities that make life easier and more comfortable for all of us. Internet banking has become one of the most used online services and is one of the best options for easily availing all the services related to banking. Financial services have made a huge impact on the life of their users by making the services available in the digital space. Loan borrowing and lending too have also made an impact in the online world and a lot of platforms these days offer loans online. It is for the user to choose a trustworthy and reliable platform for availing of their personal loans and be sure of the service being provided and their information not being misused.
If you are looking for a trustworthy platform for borrowing a personal loan, you must try Loaney. One of the most reliable online websites for borrowing instant personal loans is Loaney, which offers loans at low-interest rates and for shorter repayment tenures. There is no need to submit collateral or find a guarantor while applying for a loan on Loaney. The documentation and paperwork required are not much and the eligibility criteria are easy to meet. Loaney ensures client confidentiality and also does not ask for the reason for borrowing the loan.
You can apply for a personal loan on Loaney with just your Pan card and Aadhar card linked with your mobile number. All you need to do is fill up the application form with your personal details and provide a bank account number with net banking services. Within a few minutes, you can get a personal loan approved by applying on Loaney. You can borrow small amounts of money from Loaney. The platform offers a personal loan of up to Rs. 15,000 to its clients for a repayment period of around 2 months.
What Is A Credit Card Loan?
At the beginning of this article, we discussed what a credit card is and what its benefits are. We discovered that a credit card can be used to borrow a loan. In this section, we will learn in-depth about what a credit card loan is and the common credit card loan interest rate. Further, we will look at the eligibility criteria, how to apply for a credit card loan online, and the benefits of a loan against your credit card.
As mentioned before, a credit card comes with a pre-approved amount limit that is set by your bank or financial institution. This is the amount a credit card can use within a month. If you are going through an emergency and an urgent need for cash arise, you can apply for a credit card loan.
A credit card loan is offered against your credit card and is a type of personal loan. You can borrow this loan against the pre-approved credit limit on your credit card. The unutilized credit limit on your credit card can be used for a credit card loan. This is an instant funding option, that can be beneficial if you urgently need cash for an emergency or any other situation. Borrowing a credit card loan online is a fast and convenient method of borrowing the required amount for an urgent situation. Most banks in India offer the facility of a credit card loan, to their clients on their respective bank credit cards. Online credit card loan calculators can be used by the cardholders to find the amount they are eligible for borrowing and the amount that will have to be repaid. Doing so is highly recommended before applying for a loan against your credit card.
There is no need for any additional documents or much paperwork for applying for a credit card loan. If you meet the eligibility criteria for a credit card loan, set by your bank, you can get your credit card loan approved and withdraw the required amount as per your needs and convenience. The credit card loan interest rates are generally higher compared to a personal loan. A processing fee or other charges set by your bank might also be applicable on your credit card loan. The amount borrowed as a credit card loan can be repaid through Equates Monthly Installments (EMIs) for the time duration specified by your bank. You can use online credit card loan EMI calculators, to calculate the amount you will have to repay before applying for a credit card loan that you will be able to pay back easily.
How To Apply For A Loan Using A Credit Card?
We have till now looked at what a credit card is and the added benefit of a credit card loan for cardholders. Credit card loans do look like a solution to the problem of urgent cash needs for an emergency and can prove very beneficial. Let us now look at the procedure of applying for a credit card loan online.
You do not need any additional documents or do any extra paperwork for applying for a credit card loan. You can easily apply for a credit card loan online from the comfort of your home, within a few clicks and get the loan approved instantly.
You can apply for a loan on your credit card with either of the two following steps:
- Calling the customer service department of your bank who will further guide you with the procedure.
- Login to your net banking website and follow the steps for the online application.
Eligibility To Apply For A Credit Card Loan
Before you apply for a credit card loan, you must be aware of the eligibility criteria for applying for this loan. A credit card loan, similar to a personal loan, is an unsecured debt, that is this loan can be borrowed without submitting collateral.
- Mostly the eligibility for the credit card loan varies from one bank or financial institution to the other. It can very much depend on the internal policies and rules set by the bank.
- Not every credit card holder is eligible for applying for a credit card loan. The eligible cardholders are mostly informed via SMS or email of their eligibility by the credit card issuer.
- Remarkable credit history is a must-have while applying for a credit card loan.
- Your previous loans and debts must be repaid in time.
- Your credit history must show regular patterns of repayment in the specified time.
The above-listed points will make you eligible for applying for a credit card loan online in India and will help you get your loan approved instantly.
Features Of A Credit Card Loan
Now that you know almost all aspects of a credit card loan, you must be wondering why this type of loan is becoming so popular and why so many more people are opting for this type of loan.
The following are a few intriguing features of a credit card loan:
- Affordable loan due to a longer interest-free period.
- Convenient repayment in 3 easy installments.
- Suitable for emergencies due to instant approval.
The following are the advantages of borrowing a loan against your credit card:
- Unsecured debt: you need not submit collateral or any additional documents.
- You can convert your expensive purchases into EMIs.
- Most loans on credit cards are pre-approved.
- Most of these loans do not require you to present a guarantor
For your convenience, we will be answering a few frequently asked questions about credit card loans online.
1. What are the different types of loans on a credit card?
Your credit card loan can be used for a variety of purposes. You have full control over how you spend the amount. Therefore, this type of purpose can be used as per your requirements.
2. Can the interest rate be negotiated?
Interest rates on any type of loan can be negotiated if your source of income is verified and certified and you have a good relationship with your money lender.
3. What is the best way to check my loan on credit card eligibility?
You can easily check your eligibility by using online credit card loan calculators. The best way to check the eligibility would be to check with your bank or moneylender.