Credit cards have been gaining attention as one of the most reliable financial tools in India. Many lenders like banks and several other financial institutions offer these cards, with the scenario currently being that even availing loans on these cards has become possible. 

A credit card loan makes instant funds available, which you can use to make a big ticket purchase or diffuse a crisis. There are many benefits to a credit card loan. Affordable Interest on a credit card loan, fast approvals and quick disbursements are some of the many benefits available. 

Are you curious to know more about credit card loans? Read on to learn more about securing a credit card loan, its benefits, and eligibility.

Guide to Apply for a Loan on Credit Card

Read these steps to apply for a credit card loan:

Net Banking

1. Check Eligibility: Ensure you meet the eligibility criteria set by your credit card issuer. Eligibility includes having an active account, being within the age limit, and maintaining a good credit score.

2. Log in to Net Banking: Visit your bank’s net banking portal using your credentials. Go to the “cards and loans” section.

3. Select Loan Option: Choose the option to apply for a loan against your credit card. Review the terms and conditions, including the interest rate and repayment tenure.

4. Fill in Loan Details: Enter the required loan amount and select your preferred repayment period.

5. Submit Application: Review your application for accuracy. Apply through the net banking portal.

Call Customer Support

1. Contact Customer Support: Call the customer support team of your credit card issuer using the number provided on the back of your card or the issuer’s website.

2. Provide Necessary Details: Inform the representative that you wish to apply for a loan against your credit card. Be ready to provide the necessary details, such as your credit card number, personal information, and employment details.
3. Follow Instructions: The customer support representative will guide you through the application process. They may ask you to verify certain details and fill out the loan application form. You can ask them for assistance on the same.

4. Document Submission: Submit necessary documents, such as proof of identity and income, either digitally or as directed by the representative.

5. Application Review: Your application will be reviewed by the bank. They may contact you for any additional information or clarification.

6. Loan Approval and Disbursal: The loan amount will be credited to your account after approval. You will receive a notification confirming the loan disbursal.

Benefits of Getting a Loan on Credit Card

Here is a list of reasons why you must get a loan on a credit card:

• Generous Personal Loan Amount: Borrowers can secure generous loan amounts on their credit card, depending on their card limit. A card loan of this magnitude makes it ideal to handle significant expenses such as home renovations, medical emergencies, or large purchases like a car or wedding costs. Such a high limit gives you access to the necessary funds to meet your financial requirements and eliminates the need to seek multiple funding sources. It also provides the flexibility to cover substantial financial commitments with ease.
  
  
• Flexible Tenure of up to 60 Months: Choose a repayment term that aligns perfectly with your financial situation. Doing so offers flexible tenure options that can extend up to 60 months. It means you can spread your payments over a longer period, reducing the strain on your monthly budget. The flexibility in tenure allows for better financial planning and management, giving you the comfort to repay the loan at a pace that suits you best.
  
  
• Attractive Interest Rates: You can benefit from highly competitive interest rates, depending on the lender's assessment of your creditworthiness and credit score. These favorable rates make your monthly payments more affordable and help keep the overall cost of borrowing lower. Paying affordable interest on a credit card loan makes repayment less of a financial burden and ensures that you can manage your expenses more effectively without undue stress.
  
  
• Minimum Documentation: Enjoy a streamlined and hassle-free application process that requires minimal or no documentation. This reduces the amount of paperwork you need to complete and speeds up the approval process. With minimal documentation, you can access the funds you need quickly and efficiently, avoiding the usual delays associated with more complex loan applications.
  
  
• No Guarantor or Post-Dated Cheques Required: Simplify your borrowing experience with no need for a guarantor or post-dated cheques. This process ensures that you can obtain your loan quickly without any additional complications and requirements often associated with other types of loans. By eliminating the need for a guarantor for post-dated cheques, the loan acquisition process becomes smoother and more efficient, allowing you to focus on utilizing the funds for your intended purposes.

Eligibility to Apply for a Loan on Credit Card

Here are the common eligibility conditions to apply for a loan on a credit card:

Conclusion

Credit card loans are a great way to secure instant money when you want to buy the gadget you have been dreaming of, or you have a financial emergency to take care of. The first step is to choose a good lender for a credit card. The next is to apply for a loan to get the best interest rates, in addition to a flexible repayment tenure. This should put you in good stead.