Posted on: March 11, 2017

2 Minute Guide to Loan on Credit Cards

loan on credit cards

The uses of credit card are many, be it cashless transaction, reward points or additional perks. But credit cards are usually considered to be the most expensive way of financing as their interest rates run into double digits. However, most cardholders don’t know that credit cards can be very helpful for short-term financing. Similar to traditional loans, a pre-approved loan on credit card can be availed within your credit limit. Loan on credit card gets disbursed quickly and interest rate levied is usually between 12% and 18% per annum.

Advantages of loan on credit card:
 

  • Loan on credit cards are pre-approved and unsecured, thus not requiring any collateral or security.
  • With loan on credit cards, you get an option to convert your expenses in simple EMIs.
  • It does not require any documentation, guarantor or post-dated cheques
  • It can be applied online and is disbursed much faster than other traditional loans.

Top loan on credit card options available:


HDFC Insta Loan

 

Instant money gets credited to your HDFC savings account within a second. The approved loan will be within your HDFC credit card limit and the loan amount will be blocked against your credit limit. HDFC offers loan up to Rs.5 lacs at an interest rate of 1.25% per month with flexible repayment tenure and nil documentation.


Axis Instant Loan


Axis Instant loan helps you in fulfilling your immediate need for cash within few seconds. The loan amount gets immediately credited to your Axis Bank savings account. You can get loan up to Rs.5 lacs with attractive interest rates and flexible repayment options.


SBI Encash


Plan your vacations, celebrations and more with SBI Encash. You can enjoy hassle-free cash availability with easy repayment methods. The mode of disbursement is through payable cheque which will be delivered at your registered address.


Citi Instant Loan
 

Facing cash crunch? No worries, Citi bank can offer you cash amount of over your credit limit too, it depends upon your credit history. Loan amount will disbursed in a form of draft which will be delivered at your registered address without any security or collateral.


Standard Chartered loan on card


Make your dreams come true, avail an instant loan up to Rs.7.5 lakhs. Enjoy flexible repayment tenure which requires no documentation or post-dated cheques. Loan amount can be either disbursed in your Standard Chartered savings account or you can also opt for a demand draft.
 

Comparison table:
 

Cards Interest Rate Processing fee Foreclosure charges Maximum disbursed amount  and mode of disbursal
HDFC Insta Loan
 
1.25% per month Depends upon applicable offer Depends upon applicable offer Rs. 5 Lakhs, HDFC savings account
Axis Instant Loan
 
1.25% per month onwards 1.5% of the loan amount or Rs.500 whichever is higher 3% on the outstanding principal amount Rs. 5 lakhs; Axis Bank Savings Account
SBI Encash
 
Depends upon borrower’s profile 2% of the loan amount 3% of the outstanding principal amount Depends on account type;
payable-at-par cheque
Citi Instant Loan     
 
Between 12% and 19% per annum 2.5% of the loan amount or Rs.300, whichever is higher 3% of the outstanding principal amount Depends on account type; demand draft is delivered at your registered address
Standard Chartered loan on card
 
1.17%  per month (as per eligibility) Depends upon applicable offer Depends upon applicable offer Rs. 7.5 lakhs; Standard Chartered Savings account or demand draft

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