Credit Card Loan : Apply for Personal Loan against Credit Card

 

Credit Card Loan is one of the most wanted financial relief during this Pandemic situation. Many credit card users may have the opportunity to apply for credit card personal loan but unfortunately they do not know how to apply or may be they need a Guide to Apply for Personal Loan Against their Credit Card.  

Credit Card Loan VS Personal Loan

 The Purpose of credit card loan may be for a small purchases of home needs, Children's Education, Home Renovation and purchasing home appliances in  bulk and pay in EMI.  

When it is coming to Personal loan the purpose may slightly vary like Wedding expenses, Medical Emergency cash needs, or Could be Children's higher education purposes.

 Personal Loan require documents to be submitted to bank for verification and the respective bank send person to do a background verification of your residence and office address and it takes few days to get it approved.  But the Credit card loan is a pre approved one.

 Wherein the credit card personal loan is a pre approved within your credit card limit or may be above the existing credit limit which does not need any document proof to submit.

Types of Credit Card Loan:

There are two types of Personal Loan against credit card.

Insta Loan:

This is one of the pre approved loan which is above your credit limit.  Normally when you have a good credit history , I Mean to say an excellent repayment track on the credit card usage the bank offers the Insta Loan on Credit Card without blocking the existing available credit limit.

 

To be more specific you can still use the credit card available limit even after applied for the Insta Loan.  This type of Loan normally we used to get it from HDFC bank if you are a their credit card user.

Loan on Credit Limit:

This is a type of loan available based on the available existing credit limit.  If you have 1,00,000 and already used 10,000 the bank may offer you a pre approved loan upto 90,000.

 

Eligibility:

 Credit Card holders who already have a good spend on the card and repayment record without any single payment defaults may apply for the Personal Loan on Credit Card.  

 

How to apply:

 To Apply for Personal Loan on Credit Card existing card holder need to call the respective bank's customer care or even through Netbanking or Mobile APP.

Time for Approval:

 The Time for approving the credit card personal loan is purely based on the Banks decision.  But usually this type of Loans will be approved and get the cash credit within 2 - 4 Working days Maximum.

 Once the approval received customer used to receive the intimation about the approval.  While applying the customer have to give their bank account details for the funds need to be credited.

Repayment Tenure:

 Usually the Banks offer Various repayment tenure type like 3 / 6/ 12 / Months or up to 48 Months.  The repayment choice of period is purely depends upon the card holders convenience.

 While you apply for a personal loan on credit card think of all the above key points and proceed further.