Blog

How to Get a Loan via Your Credit Card in India?

Submitted by admin on July 17th, 2025

Credit cards in India are not only used to make a purchase; they are also utilized as an instant ticket to instant credit by taking up a loan facility in credit cards. They are loans that have already been given to card holders by banks or card issuers and the only issue is that they have flexible repayment plans and are quite fast to be processed. This is how you can borrow money using credit card in India and what is important to know before applying.

What is Credit Card Loan?

A credit card loan is an individual loan which is advanced against the unused credit limit on your credit card or over and above your credit limit. It is not subject to any documentations or security because the bank would already be having a financial relationship with you. Banks are willing to provide you with a loan immediately according to your credit score, repayment history, and pattern of usage.

Key Features of a Credit Card Loan in India

• Instant Approval: If you’re eligible, you can apply and get approved within minutes, especially through online or mobile banking.
• No Paperwork: Most banks offer these loans with zero documentation for existing customers.
• Flexible Tenure: Repayment periods typically range from 6 to 60 months.
• Fixed EMI Option: Unlike revolving credit, these loans come with a fixed monthly EMI and interest rate.
• No Usage Restrictions: Use the loan for medical expenses, education, travel, home renovation, or emergencies.

Steps to Get a Credit Card Loan

Check Eligibility

Log in to your credit card account via the bank’s app or website. Most major banks like SBI, HDFC, ICICI, Axis, and Kotak Mahindra show your pre-approved loan offers, if any.

Choose Loan Offer

If eligible, you’ll see options based on your credit limit and profile. You can select the loan amount and repayment tenure as per your needs.

Review Interest Rate & Charges

Compare the offered interest rate, usually between 12% to 24% per annum, and check for any processing fees or foreclosure charges.

Apply Online or Through Customer Care

Confirm the offer via net banking, mobile app, SMS, or customer care. Once approved, the loan is either:

1. • Converted from your available credit limit, or
   • Disbursed as an instant cash loan to your bank account.
2. Repayment Through EMIs

The EMIs will be added to your monthly credit card statement. Make sure to pay your dues on time to avoid penalties or affecting your credit score.

Things to Consider

• Impact on Credit Limit: If the loan is taken from your available limit, it reduces your purchasing power temporarily.
• Credit Score: Timely repayment can boost your CIBIL score, but defaults can hurt it badly.
• Interest Burden: Though faster than a personal loan, credit card loans may carry higher interest rates.
• Balance Transfer Option: You can transfer your credit card loan to another bank for a lower interest rate, if eligible.

Final Word

Credit card loans are a good short term lending method and you need to raise immediate cash provided the administration is not much involved. Nevertheless, they should be employed like any other credit facility, at a responsible usage. It happens that you should always consider your repayment before deciding to borrow a loan and compare the rates in different banks to get the best when taking a loan.