A Credit Card Loan’s Reality- Interest Rates, Features & How To Apply

Nowadays using Credit Card has become very common for people, due to online transactions and cashless India. So, if you are looking for a loan on your credit card, this article is exactly made for you. What you will get from this article? This article will get all information about loans on credit cards, features, downsides, charges, & more.

What are Credit Card Loans?

A credit card loan is a pre-approved limit of taking credit by the credit cardholders in a month. Most banks (let’s take SBI ) offer loans against the credit card when you urgently need cash.

In simple words, we can say that you borrow money from SBI (Bank) to fulfil your requirements. E.g., if you are purchasing a product through Credit Card, that means the payment is made by SBI (Bank ), but it has to be paid by you later. Sometimes, people mostly prefer to pay by credit Cards because it assures security and easy tracking.

Features of Credit Card Loan –

Different Banks provide different benefits for credit cardholders. The list below is the common feature of credit card loans for all the banks.

1. Gets instantly money from the bank when in urgent need, based on your credit limit.
2. You can make the repayment of your loan in 3 easy EMIs.
3. Its interest-free period, up to 90 days.  
4. If you have Credit Card, then no extra documentation is required to submit for getting the Credit Card loan from the same bank.  

Advantages of Credit Card loans- 

There are a lot of advantages for credit card loans, some are mentioned below-

1. You can enjoy a total of 90 days of interest-free funding from the bank(SBI)
2.  You don’t need any guarantor or post-dated cheques.
3. This is paperless work, without any hassle in financial works.
4. Applying is very easy.

These are the few advantages you can enjoy if you have credit card loans.

How to get a Credit Card loan? 

To get a credit card loan from any bank you need to have some common eligibility for applying, once approval is done by the bank (SBI ) then you can get your credit card loan easily with no time.

Basically, there are only two things that most matter to get a credit card loan:

1. Eligibility Criteria 2. Required Documents.

If you pass these requirements you can get a credit card loan in very simple steps. but first, let me know  the eligibilities that you must follow:  

Some common eligibility are as follows-

1. You should have a strong and excellent credit history.
2. You should have good purchases and repayment patterns for credit card bills.

These two are the most common and important eligibility to get you Credit Card loan from any bank like SBI.

Top Banks which Offers Loan on Credit Card 

There are lot of banks which provides loans on the credit card but this is the top bank which is common, they are –

1. HDFC Bank
2. ICICI Bank 
3. Kotak Mahindra Bank 
4. IDBI Bank 
5. IndusInd Bank 

These are the banks that provide a good amount of interest rate to the users with a lot of extra features to the users of the credit card.

What are the charges for credit card loans?

The charges of the credit card loans depend on the type of credit card you are using. The charges may vary from bank to bank but have a lot of differences.

1. Joining fees: This is the one-time fee paid to the bank (SBI ) along with GST charges.

1. Credit Card Annual Fees: These are the charges which are paid to the bank whose card you are holding. This payment is yearly excluding GST. This is collected as a service charge.

1. Late Payment fees: This payment is done when you failed to pay the minimum amount of your loan within the grace day of your credit card’s loan.

1. Foreign Transaction fees are charged when you make payment for or from another country through a credit card.

1. Cash withdrawal fees: These fees are charged when you use a credit card to withdraw cash from atm.

These are some common charges need to pay you when you get a loan on your credit card.

CONCLUSION 

Loans on credit cards are very common nowadays as it is very secure and safe compared to debit cards. so, maximum big transactions are done through credit cards. This article will guide you will all the details of the credit card loan if you are thinking to apply for it.