How to Get instant Personal Loan on Credit Card

Emergency expenses can come unexpectedly. A personal loan (PL) can be a quick solution in such cases. Since lenders now offer PLs online, it has become among the quickest and easiest ways to get extra funds.

A personal loan isn't just for financial emergencies. It's also a great option for planning a big purchase, a wedding, or your dream vacation. For added convenience, there is a loan against credit card facility by lenders.

With attractive interest rates, minimal documentation, and flexible terms, taking a personal loan on a credit card is a smart choice. Here are some important steps for applying online.

Eligibility for PL on Credit Card

To get an instant personal loan on your credit card in India, you need to meet certain eligibility criteria set by the lender. A good credit score is crucial. Lenders typically prefer applicants with a credit score of 700 or above, indicating a responsible credit history and low risk of default.

Your income plays a significant role in determining your eligibility. Lenders will assess your income to ensure you can repay the loan. Generally, a stable and sufficient income increases your chances of approval.

Your credit card usage and repayment history are also important. Regular, timely payments and a low credit utilisation ratio (preferably below 30%) reflect your financial management skills well.

Banks often offer personal loans on credit cards to their existing customers. If you have a long-standing and positive relationship with the bank, it can enhance your eligibility.

Being employed with a reputed organisation or having a stable job history can improve your chances of getting a personal loan on your credit card. Self-employed individuals may need to provide additional documentation to prove their income stability.

Documents Required to Take a PL Against Credit Card

When applying for an instant personal loan against your credit card in India, you must provide certain documents to verify your identity, income, and creditworthiness. Here are the key documents typically required:

Identity Proof: You must submit a government-issued ID to confirm your identity. Commonly accepted documents include:

• Aadhar Card
• Passport
• Voter ID
• Driving License
• PAN Card

Address Proof: Proof of residence is necessary to establish your current address. Acceptable documents include:

• Aadhar Card
• Passport
• Rental Agreement
• Voter ID

Income Proof: Lenders require income proof to assess your repayment capability. That can include:

• Salary Slips of the past 3 to 6 months (for salaried individuals)
• Bank Statements of the last 3 to 6 months
• ITR of the previous 2 to 3 years (for self-employed individuals)
• Audited financials (for self-employed individuals)
• Credit Card Statements

Checking Interest Rates and Repayment Tenures of PL on Credit Card

When applying for an instant personal loan against your credit card in India, it is crucial to thoroughly understand the interest rates and repayment tenures offered. It will help you make an informed decision and ensure the loan suits your financial situation.

Interest rates determine the cost of borrowing the loan. Lenders offer varying interest rates based on your credit score, income level, and repayment history. Visit the websites of different banks and financial institutions to compare their interest rates for personal loans against credit cards.

Disbursal of Loan Amount

Suppose you have a savings account with the bank where you've applied for a personal loan against your credit card. In that case, the loan amount will be directly transferred to that account. For customers without a savings account in the same bank, the funds will be disbursed via National Electronic Funds Transfer (NEFT) or a Demand Draft (DD).

After applying for a loan against your credit card, the approval and disbursement process usually takes 3-4 working days. If the disbursement is done through a DD, it might take up to 2 weeks.

You can conveniently apply for the loan online from your home or office by visiting the loan provider's website. Some banks also offer the option to apply via SMS or by calling their customer support. Additionally, you can visit the nearest bank branch to apply for a loan against your credit card in person.

Also Read: Understanding Personal Loan Disbursement Process

Quick Personal Loan on Credit Card

A Credit Card is a highly beneficial financial tool when managed responsibly. With the option of an instant loan on Credit Card, you can now efficiently handle unexpected expenses and other financial needs quickly, conveniently, and stress-free.

Conclusion

Obtaining an instant personal loan on a credit card in India offers a convenient solution for immediate financial needs. By understanding the process, benefits, and considerations outlined in this guide, you can make informed decisions about leveraging your credit card for quick access to funds. Remember to assess your financial capability, repayment options, and the impact on your credit score before proceeding with a credit card loan. With responsible borrowing and timely repayments, a credit card loan can effectively bridge financial gaps and provide peace of mind during emergencies.