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Credit Cards

What is loan against credit cards

Yes, you can get a loan on your credit card. How? Let us see!

 

The loan is granted on the unused credit limit of the credit card. You can use it to finance your money requirements. The loan is issued with a nominal processing fee. You can pay back the loan through easy EMIs. 

 

These loans are usually given for a shorter time period of less than 1-year or so. Some banks/NBFCs also offer an interest-free period. 

 

The good thing about these loans is that they are hassle-free and require minimal paperwork since your details are already present with the bank. They are very convenient funding options for your short-term needs. However, be aware of the interest rate, it may be higher than other loan options available for you such as a personal loan or a gold loan.

 

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Units 11/12