123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

What Is A Loan Against Credit Card? Its Advantages And Top Banks Offering Them

By Author: Neha Sharma
Total Articles: 214

Emergencies are always just around the corner and you can never be truly prepared to handle them. Often, such situations will force you to spend a great deal of money. However, you may not have such huge sums lying around in your bank account. At such a time, a loan is your best option. However, most loan application processes are long and strenuous.

Therefore, you should consider a loan against credit card at such times.

What is a loan against credit cards?

If you require money and own a credit card, you can apply for a loan against the card. When you apply for such a loan, your bank will provide you with the required amount of money, which you would then repay through the credit card bills. Some people confuse loan on credit card with cash withdrawal using the card, but these two are different.

In case of cash withdrawal using the credit card, you can collect cash from a nearby ATM using your credit card. The rate of interest charged on such a withdrawal is generally high. However, in the case of loan against a credit card, the interest rates are lower. Furthermore, the money lent is generally greater than the withdrawal limit on the card.

Benefits of loan against credit card

1. The lower rate of interest than most other loans, including the interest charged on cash withdrawal
2. No document required for application of the loan. This is because, all necessary information is already in the possession of the lender, as you are using their credit card for taking the loan.
3. When you take a loan against a credit card, you get the money instantly. This feature is greatly handy for people who require the money immediately.
4. You do not need to visit the bank to apply for the loan. Instead, you can apply for the same from anywhere at any time.
5. The processing fee for such a loan is usually lower than the fee charged for the processing of other kinds of loans
6. You do not require collateral for loans against credit cards. Therefore, the procedure is simpler to handle.

Banks offering loans against credit card in India

If you are looking for loans against your credit card in India, you have many options. You can avail such a loan if you have credit cards from HDFC Bank, Citibank, HSBC Bank and ICICI. HDFC Bank offers Insta Jumbo loans against their credit cards. If you apply for such a loan against your HDFC Bank credit card, the money lent will be credited to your account within 60 minutes. Thus, the processing of the loan is extremely fast as well.

Author bio:
Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about loan on credit card. Through her work, she mentions its benefits and the top banks offering them

Total Views: 41Word Count: 472See All articles From Author

Investing / Finance Articles

1. Shashank Pawar
Author: Liquid Funds for Short-Term Investment, Low Risk a

2. 7 Best Investment Options To Consider In India
Author: Swarali Chavan

3. 9 Benefits Of Investing Mutual Funds In India
Author: Shashank Bhaskar

4. What Are Balanced Funds? Why Invest In One?
Author: Swarali Chavan

5. What Is Nav? What Is The Correlation Between Mutual Funds And Nav?
Author: Swarali Chavan

6. Want To Invest In Mutual Funds? Here Are Some Tips And Smart Ways To Invest Online
Author: Swarali Chavan

7. Open-ended Funds Vs Close-ended Funds: Which Is Better?
Author: Swarali Chavan

8. Types Of Mutual Funds And Associated Risks Explained!
Author: Swarali Chavan

9. Everything You Want To Know About Equity Mutual Funds
Author: Swarali Chavan

10. An Overview Of Types Of Mutual Funds For Beginners
Author: Swarali Chavan

11. A Step-by-step Guide On How To Invest In Mutual Funds
Author: Swarali Chavan

12. What Are Mutual Funds? 5 Ways To Choose The Best Performing Mutual Fund In India
Author: Swarali Chavan

13. Single Touch Payroll Is Coming, Find Out The Benefits.
Author: Brigette Coles

14. How Is Interest On Recurring Deposit Calculated?
Author: Neha Sharma

15. How Is Personal Loan Emi Calculated?
Author: Neha Sharma

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: