Best Way to Get Loan on Credit Card

Highlights

  • Having a credit card? You can get instant loan on the same to resolve your immediate cash needs
  • Top banks including SBI, HDFC Bank, ICICI Bank offer loan on credit card

Emergency comes uninvited and demands something out of the routine to get over. The point is relevant more so in the case of financial emergency requiring some good cash amount to leave your shore. Yes, the talk is about the instant loan that you would need when such a situation does arise in your case. However, with the help of a credit card, things can turn your way. There are banks that offer you a loan on credit card. It’s actually a pre-approved loan based on your credit card repayment track. Also, there’s no need to submit any document to access such loans.

Banks That Offer Loan on Credit Card

Banks such as State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and a few others provide a loan on credit card. Let’s check out the credit card backed loan offers from different banks now.

SBI Card Encash

Feeling for extra cash to fulfill your needs? Get started with SBI Card Encash, a scheme by which you get funds for holidays, education, marriage, etc. The loan is applicable to SBI credit cardholders, subject to meeting the eligibility criteria.

Rate of Interest

As applicable at the time of offer.

Fees & Charges to be Debited

Processing Fee – 2% of the loan amount, subject to a minimum and maximum of ₹499 and ₹3,000, respectively

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Foreclosure Fee – 3% of the pre-closed amount to be paid on loan foreclosure

How Much Loan is Expected?

The pre-approved loan amount, which would be over and above your credit limit, would be provided by a cheque to your residence within 3-5 working days.

Repayment Period

Choose from the repayment tenures of from 12, 24 and 36 months

How to Apply for SBI Card Encash?

You can choose from the following to apply for SBI Card Encash.

  • SMS Encash to 56767
  • Dial 39020202 or 18601801290
  • Login to SBI Card Online account

Insta Loan – HDFC Bank

The bank, with a view to fulfilling the instant cash needs of the most, gives you Insta Loan against your HDFC Credit Card.

Rate of Interest

It will be decided by the bank on the basis of how you have fared in card payment. A smooth payment record can lead to a reduction in the interest rates.

Fees & Charges to be Debited

The EMI amount will be added to the credit card statement, showing the total dues as well as the minimum due. The interest component of the EMI would also bear Goods and Services Tax (GST) at the applicable rate.

How Much Loan is Expected?

The loan will be based on your income, repayment potential, besides other factors. It will get disbursed to your HDFC Bank Savings account or be sent to you via a demand draft drawn in favour of your name as would be shown on HDFC Bank Credit Card records.

Repayment Tenure

You are given an option to choose your tenure

How to Apply for Insta Loan?

You can apply for the same on HDFC Bank’s official website. All you need to do is to get to ‘Loan on Credit Card’ segment, click on Apply Online at the bottom and mention the details correctly before submitting it finally. The bank will go through your application and give a nod upon a successful verification. You can even visit the nearest bank branch to apply for the same.

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Axis Instant Loan

Enjoying your Axis Bank Credit Card journey? You can make it even more rewarding by having a loan on the basis of the card. Yes, Axis Bank offers ‘Instant Loan’ to its credit cardholders seeking a loan to meet their instant needs. It’s a pre-approved loan based on the basis of repayment track.

Rate of Interest

The interest rate will vary between 15%-21% per annum on a reducing balance basis, based on the profile of the customers.

Fees & Charges to be Debited

Processing fee – 1.5% of the loan amount or ₹500, whichever is greater

Foreclosure fee – In case you pre-close the loan before the original tenure, a sum equivalent to 3% of principal outstanding at the time of foreclosure or ₹300, whichever is more, along with applicable Goods and Services Tax (GST) would be levied.

How Much Loan is Expected?

The loan amount would depend very much on your income, repayment potential, and your Axis Bank card repayment track. You will get the loan credited to your Axis Bank Savings Account.

Repayment Tenure

You can be multiple repayment tenure options to choose from.

How to Apply for Instant Loan?

You can apply by either of the following modes.

  • A missed call to 18004190230
  • SMS ILW to 5676782
  • A dial to 18605005555 or 18604195555

ICICI Bank Personal Loan on Credit Card

ICICI Bank provides a personal loan to its credit cardholders on the basis of spends, transaction pattern as well as the payment history.

Rate of Interest

The rate of interest would depend on the quantum of finance to be disbursed, the repayment track, credit score, besides other factors.

Fees & Charges to be Debited

As applicable by the bank

How Much Loan is Expected?

A maximum of ₹10 lakh can be granted and disbursed to your ICICI Bank Savings Account. Those not having a savings account at ICICI can get the funds transferred to other bank’s account via NEFT. Even a demand draft can be issued to them. If you want funds via NEFT, send the scanned copy of cancelled cheque or bank statement showing IFSC Code to [email protected] While the fund transfer can take 3-4 working days, demand draft can be received within 11 working days.

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Repayment Tenure

You can be given a maximum of 5 years to pay off the loan.

How to Apply for Personal Loan on Credit Card?

You can apply by choosing from the following modes.

  • Type CASHIN WP and send it to 5676766 via SMS
  • Log in to Net Banking or iMobile and apply in ‘Credit Card’ section
  • Dial customer care executives on 18002003344
  • Go to the nearest ICICI Bank branch

Kotak Mahindra Bank Personal Loan on Credit Card

Having a Kotak Mahindra Bank Credit Card can help you tide over the emergencies with the help of a suitable personal loan. It’s a pre-approved loan which is given on the basis of credit card payment track.

Rate of Interest

The setting of interest rate would depend on the loan amount, the card payment track, etc.

Fees & Charges to be Debited

As applicable by the bank

How Much Loan is Expected?

As much as ₹5 lakhs can be disbursed to your Kotak Mahindra Bank or any other savings bank account instantly.

Repayment Tenure

You are given a flexible repayment tenure of 6-48 months to pay off the loan.

How to Apply for Personal Loan on Credit Card?

You can choose from the below application modes.

  • SMS PLCC to 5676788
  • Call customer care number – 18602662666
  • Login to net banking, go to the ‘Credit Card’ tab and choose ‘Loan on Card’ option
  • Download Kotak Mobile Banking App from Play Store or App Store, log in, go to ‘Credit Card’ tab and click on ‘Apply on Card’ section

Personal Loan Interest Rates December 2018
Bajaj Finserv10.99% - 16.00%
Fullerton India14.00% - 33.00%
HDFC Bank11.25% - 21.50%
ICICI Bank10.99% - 18.40%
IndusInd Bank10.99% - 16.00%
Kotak Bank10.99% - 20.99%
RBL13.00% - 18.00%
Standard Chartered Bank12.00% - 17.00%
Tata Capital10.99% - 18.00%
Home Loan Interest Rates December 2018
State Bank of India/SBI8.75% - 9.35%
HDFC8.80% - 9.70%
Bank of Baroda8.65% - 9.65%
LIC Housing8.85% - 9.05%
PNB Housing Finance9.00% - 13.00%
ICICI Bank9.10% - 9.35%
Axis Bank8.85% - 9.10%
Citibank9.00% - 9.85%
Indiabulls Housing Finance Limited8.80% - 11.05%
Kotak Bank8.90% - 8.75%
DHFL9.05% - 9.95%
Reliance Home Finance8.75% - 14.00%