When you need quick access to funds, your Credit Card can be a valuable resource. With the option to take a loan against your Credit Card, you can get immediate financial assistance without the hassle of extensive paperwork. Whether it’s for an emergency expense, a big purchase, or to consolidate debt, lenders offer convenient and flexible loan options to their credit card customers.
In this guide, we’ll walk you through the process of applying for a loan on your Credit Card, clearly highlighting the steps to follow and learning some advantages as well.
Steps to Avail a Loan Using Your Credit Card
Major banks like ICICI Bank provide Credit Card loans to their existing credit card holders. The approval for a Credit Card loan amount depends on your Credit Card limits.
To check your eligibility for pre-approved loans on a credit card, log into your online banking account or mobile app, where you can find pre-approved loan offers displayed under the credit card section. Follow these steps to check your loan offers:
1. Internet Banking:
- Log in to your Internet Banking account.
- Click on ‘Cards’ under the ‘Cards & Loans’ section.
- Scroll down to view the available offers and select the ‘Personal Loan on Credit Card’ option to apply.
2. App:
- Log in to the iMobile App.
- Click on either ‘Cards & Forex’ or the ‘My Cards’ option.
- Scroll down to check the available offers and proceed with the ‘Personal Loan on Credit Card’ application.
You can get a loan on your Credit Card for amounts up to Rs. 20 lakh*, with an attractive Credit Card loan interest rate and a flexible repayment tenure of up to 60 months. The loan amount and specific interest rate will be communicated to you by the lender as per your eligibility.
Advantages of Obtaining a Loan on Credit Card
With a loan on credit card, you can enjoy a range of financial benefits that provide convenience and flexibility, such as:
- No collateral required
A major benefit of obtaining a loan through your Credit Card is that it is a loan option that does not require any collateral or guarantor involvement – providing convenient and easy access to funds.
- Ideal for emergency funds
When your Credit Card loan is determined by your spending and repayment behaviour, your credit history plays a major role. With a good history, you can avail a loan on your credit card instantly. This loan can really come in as a saviour in times of crisis when you need quick access to a large sum.
- Flexible repayments option
Lenders provide flexible repayment options of up to 5 years, allowing you to select a tenure that is comfortable with your financial situation.
- High loan amount
When dealing with Credit Card loan services, the bank offers you a maximum loan amount, which depends on your Credit Card limit and financial history. This is beneficial for people with high-end purchase history and timely repayment behaviour.
- Seamless application process
Getting a loan on your Credit Card is simple and convenient with banks like ICICI Bank. You have the option to apply online using ICICI Bank Internet Banking or the iMobile App without dealing with the hassle of any paperwork. This procedure lets you complete your application from the comfort of your own home.
- Easy Payback in EMIs
Repaying the loan is straightforward since it just gets included in your Credit Card statement as EMIs. It means you don’t have to worry about making loan payments, everything can be handled through your Credit Card account easily.
Conclusion
Getting a loan using your Credit Card is a convenient way to access funds without the requirement of a guarantor or collateral security. The online application process is straightforward and offers flexible repayment choices with competitive interest rates.
ICICI Bank offers an easy solution for individuals seeking financial assistance whether it’s for personal expenses, making ends meet during medical emergencies or meeting business requirements. It’s helpful to consider the interest rates and make sure you can handle the instalments comfortably before you decide to apply for the loan.
Remember to borrow within your capacity and opt for a repayment period that suits your current financial circumstances best.