Credit cards offer a myriad of benefits. Besides facilitating you with cashless online transactions and offering attractive discounts and cashbacks on purchases, the credit cards also offer you loans. These loans, also called loan on credit cards, are pre-approved and are sanctioned against the credit limit of your credit card. The loan amount sanctioned under this facility by the card issuer is generally within the credit limit at flat interest rates. But some card issuers lend amount exceeding the credit card’s credit limit. Loan on credit card is quite similar to other loan schemes. Just like other types of loan, here also the card issuer lends an amount to a customer which he/she has to repay along with the interest.
Almost all banks offer loan on credit card and IDBI Bank is one of them. The bank offers this type of loan to all individuals involved in non-farm entrepreneurial activities. These loans are designed to help SMEs i.e. Small and Medium Enterprises of our country.
IDBI Bank Loan on Credit Card Benefits and Features:
- The IDBI general credit card loan offers two facilities, term loan and cash credit.
- Under this facility, applicants are eligible to avail a loan amount of minimum Rs. 50,000/- and a maximum of Rs. 5,00,000/-.
- In case of term loan, the maximum loan repayment tenure is 5 years.
- In case of cash credit, the maximum loan repayment tenure is 12 months, repayment on demand.
- The pricing structure of this particular facility is linked to the base rate offered by the bank.
- Both cash credit and term loan offers a margin of 25% to the customers.
IDBI Bank Loan on Credit Card Eligibility Criteria
Only those entrepreneurs who are involved in non-farm activities can apply for IDBI General Credit Card Loans (IDBI GCC Loans).
Please Note: IDBI Bank is not a Paisabazaar partner. Offers would be from partner Banks/NBFCs only.
Apply for IDBI Bank Loan on Credit Card
Entrepreneurs can avail this type of loan online on IDBI Bank’s website as well as offline. For the online application process, the applicant will need to first fill out the MSMEs Loan Application Form online and submit it. For the offline process, download the form or get it from your bank branch and fill it with correct details. Once you have filled out the form, submit it along with the required documents.