Loan on credit card is a type of personal loan offered against your credit card. Being a quick and convenient method of borrowing, it can be very helpful in case of a financial emergency. However, the interest rate on loan against credit card is usually higher than that on a personal loan; processing fee and other charges are also applicable. So, before you opt for a loan on credit card, you must know its pros and cons.
| Parameters | Details |
| Eligibility | Pre-approved customers are informed about their eligibility via SMS. Eligibility depends on the internal policies of the bank. |
| Documents Required | No additional documents are needed |
| Loan Amount | Eligible loan amount depends on your credit limit and other internal policies of the bank. |
| Loan Tenure | Up to 60 months (may be higher in certain cases depending on the bank’s policies) |
| Interest Rate | Varies from lender to lender; may also vary from customer to customer |
| Processing Fee | 1.5% to 3% of the loan amount (based on the lender’s terms and conditions) |
| Loan Disbursal Time | Within 24 hours if you have savings account in the same bank 5-7 business days (or higher) in case of NEFT or Demand Draft |
Click here to see the loan against credit card terms and conditions for different banks.
2 Comments
Hello can u tell me that how much of insta loan on credit card should be availed from pre approved loan amount.Like if offered 70000rs insta loan on credit card, how much should one avail from given pre-approved amount that it doesn’t affect credit score.
Hi Rahul,
An insta loan, like any other loan account, will impact your credit score only if you fail to pay the EMIs on it. No matter how much of the pre-approved amount you borrow, you must ensure timely payment of your EMIs to avoid negative impact on credit score.