how to get loan on credit card


Step-by-Step Guide How to Secure a Loan Using a Credit Card

How to Get Loan on Credit Card: All You Need to Know About the Steps

Knowing how to get a loan on credit card can make it easy to get instant cash without pledging your valuable assets as collateral. Applying for a traditional loan during unexpected financial requirements may be a time-consuming process, but getting a loan on a credit card may not be.

Although credit card loans may be an unconventional option to secure funding, it may be more convenient. You don’t have to go through a tedious process to get this loan, reducing the processing time.

What is a Loan Against a Credit Card?

It is a pre-approved facility offered to the cardholder based on their repayment pattern, card utilisation and financial profile. It may work like a regular loan; you apply, and the amount gets disbursed to your account after approval. 

It’s pretty easy to get credit card loan approval when you opt for this facility. Wondering how? It’s simple. There’s no need for additional documentation or information required as the issuer has your details with them.

But remember that issuers charge interest on the borrowed amount, similar to traditional lending options. Paying the borrowed amount and interest within the chosen repayment tenure, and you’re good to go!

How to Get a Loan Against a Credit Card

Getting a loan on a credit card is a straightforward online process that allows you to apply at your convenience. Simply follow these steps to learn how to get a loan on a credit card:

  • Step 1: Ensure that you meet the issuer’s eligibility criteria
  • Step 2: Log into your issuer’s website or mobile app
  • Step 3: Select the ‘Loan Application’ option
  • Step 4: Choose the loan amount and repayment tenure
  • Step 5: Submit the application and wait for approval
  • Step 6: Provide the required documents after approval, if required by the issuer

After the document submission, your loan will be disbursed swiftly.

Advantages of Taking a Credit Card Loan

Consider the following benefits if you want to apply for a loan against a credit card:

  • It allows you quick access to instant funds in the case of a financial emergency without a lengthy application process.
  • You can get a loan even without pledging any collateral.
  • You can decide your loan repayment plan to meet your budget restrictions.
  • The interest rates are lower compared to the cash withdrawal charges on a credit card.
  • It is convenient, as you can apply online anytime and from anywhere.
  • This financing option has a lower cost of borrowing thanks to its minimal processing fees
  • You can easily pay your loan through monthly instalments billed to your credit card   
  • By regularly paying your credit card loan EMIs, you can improve your credit score

Things to Know Before Taking a Credit Card Loan

While it offers many benefits, considering these tips will help you make a well-informed decision: 

  • Check if you meet the issuer’s eligibility criteria or have a pre-approved offer.
  • Having a good credit score helps improve your chances of getting approval.
  • Applicants with a stable income may have a higher approval chance.
  • Assessing your financial requirements before applying may help you understand how much loan you require.
  • History of default and late credit card payments may hurt your chances of approval.
  • Read the terms and conditions carefully, including the interest rates, processing fees, late payment charges, pre-closure charges, etc.
  • You can use an EMI calculator to decide on a comfortable tenure and monthly instalment amount.
  • If you have additional funds required, paying more than the minimum amount may be a wise option to reduce your interest burden.
  • Taking a loan against a credit card impacts your credit score, so monitoring it regularly helps you understand your financial standing.

Keeping these facts in mind, you can avail of a loan for your umpteen financial requirements and repay with a comfortable repayment plan. Getting a loan against your One Credit Card is easily accessible on the mobile app. You can also use the app to track your loan EMIs, bills, offers, subscriptions and other payments. 

The hassle-free tracking of your transactions will help you manage your finances better and empower you to spend confidently. What’s more, the credit card comes with a host of other benefits like no annual and joining fees, zero hidden charges, 5X rewards and more. Apply now to experience the benefits of the best lifetime free credit card online in India

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