Indialends, 21 Jan 2026

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Acquiring a personal loan against your credit card

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Suppose you've been planning a dream vacation, but suddenly, some urgent bill appears out of nowhere, throwing a wrench into your plans. This is where personal loans against credit cards step in to save the day. These unique loans provide a solution when you are stuck in situations where you need instant cash. Think of this loan as a strategic maneuver – utilizing your credit card to navigate through unexpected hurdles gracefully. The following sections will explore how a personal loan against your credit card can work and how it is more streamlined and controlled.

First, let’s understand exactly what a personal loan against a credit card is?

A personal loan against a credit card, often referred to as a credit card loan or a credit card advance, allows cardholders to borrow a portion of their credit limit in the form of a loan. This loan amount is typically credited to the cardholder's bank account, offering them access to cash that can be used for various purposes, such as emergencies, medical bills, home repairs, education expenses, or even a vacation.

How does it work?

For example, if you have a limit on your card of Rs. 3,00,000. You wish to take Rs. 2,50,000 as a loan. What you can do is you can go to your bank and ask them to give you a loan. The bank will quickly approve the loan, and your remaining credit limit will be Rs. 50,000.

Suppose the bank gives you this loan at 14% p.a for 16 months.

You will pay Rs. 17,219 EMI every month for 16 months until your loan is repaid. With every EMI you make, your bank will gradually increase your card’s limit by that amount. At the end of 16 months, your limit will be back to Rs. 3,00,000.

Some features of a loan against a credit card:

1. It is a pre-approved loan.

2. it is quickly available.

3. It doesn’t require much documentation.

4. It is an unsecured/no-collateral loan.

5. It has a flexible repayment option.

6. Interest rates are usually low.

What makes it a good option?

1. Speed and Convenience: Although, at IndiaLends, personal loans are available to you in just a few hours, one of the most significant advantages of personal loans against credit cards is the speed of access. Credit card loans are often approved swiftly because the bank already has all your details, and your loan is also pre-approved from the bank’s end.

2. Minimal processing fee: When you apply for a credit card loan, your details are already registered with the bank meaning the processing fee of these loans will be very low/lower than other personal loans.

3. Easy repayment: Credit card loans provide easy repayment options through EMIs. With low-interest rates and easy EMI options, it becomes a viable choice for those who want instant money without much hassle.

4. Simple application process: You can apply for these credit card loans through your bank’s website or mobile app.

Eligibility criteria for credit card loans:

1. A valid and active credit card against which a loan is given.

2. Existing account in the bank.

3. A good credit score.

4. Good repayment history

5. A regular income source.

Personal loans against credit cards can be a lifeline during emergencies or when immediate access to funds is crucial. However, they should be approached with caution and careful consideration of their terms, interest rates, and potential impact on your financial health. Responsible borrowing, clear repayment planning, and understanding the fine print are essential to making the most of this financial tool.

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