Looking for quick funds without the hassle of paperwork? A loan on credit card could be the perfect solution. It’s designed to give you instant access to cash, flexible repayment options, and attractive interest rates—all with just a few clicks.
Financial Expert Advice
Choose Your First (or Next) Credit Card Wisely
Maintain Two Credit Cards: One For Routine Expenses And Auto-Debits, And Another Reserved For Emergencies. Avoid Pursuing Rewards; Prioritize Financial Stability And Discipline.
Why Choose Loan on Credit Card
Loan Benefits & Features
Benefits
- No paperwork – A straightforward process with no document submission required.
- Online disbursal – A convenient three-step online procedure.
- Instant loan – Immediate disbursal of the loan amount to your savings account.
Interest Rate
- Take advantage of competitive interest rates, some of the lowest available.
- You can view your personalised interest rate offer online.
Flexible EMIs
- Choose a tenure ranging from 12 to 36 months.
- Longer tenure = Lower EMIs.
- Use the Credit Card Loan EMI Calculator to estimate your monthly instalments.
Tenure
- Repay loans in easy and flexible instalments tailored to your needs
Processing & Approval
- Quick disbursement with a pre-approved loan.
- The amount is credited to your savings account within seconds.
Pre-closure
- Option to close the loan early for a nominal fee.
- Contact PhoneBanking or your relationship manager for assistance.
24/7 Access
- NetBanking – Navigate to Loans > Credit Cards > View Summary > Quick Links > Loan against Credit Card.
- PhoneBanking – Contact customer service anytime, day or night.
How a Loan on Credit Card Works
Basic Mechanics
A loan on a credit card converts a portion of your eligible limit (or a limit over and above your card limit, in some variants) into a term loan.
You choose the loan amount (up to the eligible limit shown) and tenure.
The approved amount is transferred to your bank account.
You repay via EMIs, which include both principal and interest, over the selected tenure.
Billing and Repayment
Depending on the type of loan, repayment can happen via your credit card statement or as a separate loan account linked to your savings account.
In some products, EMIs appear on your monthly credit card statement and are payable like regular card dues.
In others (especially "jumbo" variants), a separate loan account is created with its own statement and auto-debit from your savings account on the due date.
Difference from Cash Advance
Many cardholders confuse a loan on credit card with a cash advance from an ATM, but they are quite different.
Cash advances usually start charging interest immediately with no interest-free period and carry high monthly rates.
Loans on credit cards offer structured EMIs, often lower effective annual rates, and sometimes promotional features like initial interest-free days.
Types of Loan on Credit Card
Jumbo Loan – Ideal for larger expenses with flexible repayment options
Instant Loan – Perfect for emergencies, with immediate disbursal.
When a Loan on Credit Card Makes Sense
Used wisely, a loan on a credit card can be a powerful tool.
Handling emergencies like medical expenses, urgent repairs, or temporary cash-flow gaps when speed matters more than rate.
Funding planned high-value spends where you want predictable EMIs instead of paying in one go.
Consolidating small, high-interest revolving dues into a single structured EMI loan at a relatively better rate.
Avoiding breaking long-term investments or FDs when you expect to restore liquidity soon.
However, it is still debt and should be treated with the same caution as any other loan.
Risks and Points of Caution
Before you proceed, weigh these considerations.
Over-borrowing: Easy pre-approved offers can tempt you to borrow more than you genuinely need.
Utilisation impact: Loans within card limit sharply reduce your available credit, which can affect your credit utilisation ratio and potentially your credit score if utilisation stays high.
Total interest cost: Longer tenures mean smaller EMIs but significantly higher overall interest outgo.
Missed payments: Delays or defaults can attract heavy penalties and damage your credit history.
Being disciplined with EMIs and avoiding unnecessary loans is crucial for long-term financial health.
Practical Tips for Borrowers
To make the most of a loan on credit card:
Compare against a regular personal loan from your bank or other lenders on interest rate, processing fee, and flexibility.
Prefer jumbo-type loans that do not block your card limit if you need the card for regular spends.
Keep tenure as short as your budget can comfortably handle to reduce interest cost.
Avoid using the card for discretionary spending while a large loan is running, so that total debt remains manageable.
Set up auto-debit from your account for the full amount due to avoid missed payments and extra charges.
FAQ'S
