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Credit Card Loan: Check Here The Benefits, Eligibility And Documents Required


One of the many benefits of owning a credit card includes having access to a credit card loan. A credit card typically comes with a predetermined, pre-approved credit limit that you can utilise within a month. However, in case of urgent cash requirements, many banks offer the option of obtaining loans against your credit card. A loan against a credit card operates similarly to a personal loan, offering a quick financial solution without extensive documentation. 

Unlike traditional personal loans, this type of loan doesn’t require elaborate paperwork to establish eligibility. It’s essentially an unsecured loan, akin to same-day cash loans, which credit cardholders can quickly obtain.

This option benefits individuals facing urgent and unforeseen financial needs, especially when the cash withdrawal limit on their credit card falls short. Unlike cash withdrawals, a credit card loan typically comes with lower interest rates and swift disbursal, often without extensive documentation. The loan amount is usually disbursed directly to your bank account. 

Benefits Of Opting For A Loan Against Your Credit Card:

Quick Approval and Disbursement: This allows swift approval and disbursal of loans, bypassing the need for extensive paperwork.

Direct Transfer Facility: Funds can be directly transferred to your bank account, offering seamless access to borrowed funds.

Low Interest Rates: This provides benefits from favourable interest rates, making these loans a cost-effective financing solution.

Immediate Access to Funds: Instantly access the loan amount upon request, ensuring prompt financial assistance.

Simple Application Process: Apply for these loans hassle-free through a straightforward online or phone application.

Flexible Access: You can apply for the loan from any location and at any time, making the process more convenient.

Minimal Processing Charges: These loans come with minimal processing fees, helping to reduce the overall cost.

Convenient Monthly Installment Payments: You can repay the loan through easy monthly instalments, conveniently billed to your credit card each month.

Extended Repayment Period: Typically, these loans offer a repayment duration of up to 24 months (2 years), providing ample time for repayment.

Eligibility For Credit Card Loans:

Many credit card loans are unsecured, meaning they don’t require collateral. As a result, these loans are typically available to a select group of cardholders. Issuers establish strict eligibility criteria for granting credit card loans. To be eligible, cardholders must demonstrate a strong credit history and a consistent record of purchases and timely repayments.

Documentation Process For Obtaining A Loan Against A Credit Card:

No Documentation Required: Typically, there’s no need for documentation when applying for a loan against a credit card. Since you’re already a credit card holder, the necessary documents would have been submitted during your card application. Having a credit card means you’ve built a relationship with your bank, simplifying the process of securing a credit card loan.

However, when applying for a credit card, you’ll typically need to provide the following documents:

  • Proof of Address
  • Identity Proof
  • Recent Passport-Size Photographs
  • Last Three Months’ Salary Slips (for Salaried Employees)
  • Copy of Office ID Card (for Salaried Employees)
  • Attested Copy of the Latest Income Tax Return (ITR) (for Self-Employed Applicants)
  • Copy of PAN Card (for Self-Employed Applicants)

Also Read : Urgent Need For Cash? Here’s How You Can Transfer Money From Credit Card To Bank Account



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