Get Loan Against Credit Card in India

Are you in need of quick cash and have a credit card? Did you know that you can get a loan against your credit card in India? Yes, it’s true! This is an option that many people are not aware of. If you’re facing an emergency or require funds for any other reason, then taking out a loan against your credit card could be the perfect solution.In this blog post, we will delve into everything pertaining to loans against cards in India, including eligibility criteria, a step-by-step process to acquire the loan, and more. So let’s get started!

Understanding Loan against Credit Card

When an individual needs quick access to funds, one option they can consider is taking a loan against their credit card. This type of loan allows the cardholder to access a pre-approved loan amount using their existing credit limit on the card.

Loan against Credit Card is a type of unsecured personal loan that does not require any collateral or guarantor. The interest rates for this type of loan are usually higher than other types of loans due to its unsecured nature.

The borrower can utilize the sanctioned amount as per their requirement and repay it in monthly installments with interest rates ranging from 12% – 24%. The repayment tenure for Loan Against Credit Card varies depending on the bank’s policy and ranges from 3 months up to 48 months.

It’s important to note that each bank has specific terms and conditions regarding Loan against Credit Card which includes minimum income criteria, mandatory documents, processing fees, etc.

Eligibility Criteria

Eligibility for a loan against a credit card can be summarized as follows:

  1. Firstly, being an existing credit card holder is a prerequisite to be eligible for a loan.
  2. Additionally, credit card providers often extend loans to pre-approved customers who have showcased exemplary credit history and timely transactions.
  3. Moreover, a strong credit history, which involves consistently paying off card bills and maintaining a commendable credit score, bolsters your eligibility for a loan.
  4. High Credit Limit: A higher credit limit on your credit card indicates a higher repayment capacity, increasing your eligibility for a loan against a credit card.
  5. High-Income Bracket: Being in a higher-income bracket signifies a higher ability to repay the loan, making you more eligible for loan.
  6. Minimal Documentation: Since you have already submitted personal and income documents during the application process, no additional documentation is usually required for a loan against a credit card.
  7. Creditworthiness Assessment: Banks assess your creditworthiness to ensure your ability to repay the loan. This assessment is based on factors like your credit history, credit score, income, and repayment capacity.

Note: Eligibility criteria may vary among different credit card issuers, so it is recommended to check with your specific credit card provider for their exact requirements.

Step-by-Step Process to Take a Loan against a Credit Card

Obtaining a loan against a credit card is a simple process. You can take the following steps:

  • Step 1: Confirm eligibility
  • Step 2: Get in touch with your credit card company.
  • Step 3: Finish the Application
  • Step 4: Submit All Necessary Documents
  • Step 5: Await approval

1. Confirm Eligibility

Check that you meet the eligibility requirements specified by your credit card company. This includes things like keeping a good credit score and having a steady income.

2. Get in touch with your credit card company.

Contact your credit card company’s customer service by visiting their nearest branch or visiting their website. Inquire about the loan against credit card option and familiarize yourself with the terms and conditions.

3. Finish the Application

Fill out the application form with accurate personal and financial information.

4. Submit All Necessary Documents

Gather and submit all required documents, including proof of identity, proof of address, proof of income, and credit card statements.

5. Await approval

The credit card company will review your application and documents after you have submitted them. If you are approved, you will receive confirmation along with the loan terms and conditions. The loan amount will be disbursed either through an ECS transfer to your account or through a bank demand draft.


After familiarizing yourself with the process of obtaining a loan on a credit card, it’s important to consider the significant benefits associated to it.

  1. Prompt Access to Funds
  2. No Need for Collateral or Lengthy Documentation
  3. Lower Interest Rates
  4. Convenient Application Anytime, Anywhere
  5. Minimal Processing Fee
  6. Repayment in Monthly Installments

Prompt Access to Funds

A loan against a credit card ensures swift access to funds, enabling you to address your financial needs without delay. The loan amount is swiftly disbursed to your registered bank account, and there are no restrictions on how you utilize the funds as long as it aligns with legitimate purposes.

No Need for Collateral or Lengthy Documentation

Credit card loans eliminate the requirement for collateral or extensive paperwork, streamlining the application process and saving valuable time.

Lower Interest Rates

Compared to the interest charged on cash withdrawals made using credit cards, credit card loans often offer more favorable interest rates. This can result in significant cost savings over time, although it’s important to note that these interest rates are still higher compared to personal loans.

Convenient Application Anytime, Anywhere

The convenience of applying for a credit card loan from any location and at any time adds flexibility and accessibility to the borrowing process, allowing you to access funds whenever the need arises.

Minimal Processing Fee

Credit card loans typically come with a low processing fee, reducing the overall cost of borrowing and making it an affordable financing option.

Also read: Common credit card myths

Repayment in Monthly Installments

Repaying the loan is made convenient through monthly installments. The loan amount is billed to your credit card as monthly EMIs, simplifying the repayment process and ensuring manageable and predictable payments.

Key Considerations

Before applying for a loan against a credit card, it’s important to consider the following factors:

  1. Top-up Loan Option: Some credit card providers offer the option of a top-up card loan. Allowing borrowers with a good repayment history to access additional funds.
  2. Flexible Loan Tenure: Loans against credit cards typically come with flexible repayment tenures. Determined by the borrower’s credit limit, specific credit factors, and the terms and conditions set by the bank.
  3. Card Usage: It’s essential to understand that depending on the remaining available credit on your card after deducting the loan amount, you may still be able to use your credit card for transactions. However, it’s crucial to consider the impact this may have on your repayment obligations. Using the card for additional transactions while having an outstanding loan can affect your ability to repay the loan on time.
  4. Loan Default Consequences: Failure to make loan repayments on time, including missing EMIs or neglecting dues, can result in late repayment charges and adversely affect your credit score.
  5. Pre-closure Charges: If you plan to repay the loan before the agreed-upon tenure, be aware that pre-closure charges may apply. It’s important to understand these charges and factor them into your decision-making process.

By considering these factors, you can make an informed decision when opting for a loan against your credit card.

Also read: How to manage credit card debt?

The bottom line

Taking a loan against your credit card can be a convenient way to access quick cash in times of need. Moreover, with minimal eligibility criteria and simple application processes, it becomes an attractive option for many Indians seeking short-term financing.
However, it’s important to remember that this type of loan comes with high interest rates and fees. It should only be used as a last resort when other options have been exhausted. Make sure you understand all the terms and conditions associated with loan. Always read the fine print carefully so there are no surprises later on.

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