Loan against credit card
It is always irksome to pay bundles of cash for a heavy purchase and even one can’t roam everywhere with a suitcase to carry cash for expenses. However, if you possess a credit card you probably have done away with the fret of carrying cash. One also doesn’t need to refill his/her bank account regularly in order to spend sums. A credit card allows a decent spending limit to customers, which in no way is related to your savings or current account balance. But what makes this financial instrument more adorable is the fact that it can also be used to avail loans.
What is a loan against credit card and how it can be availed?
Loans availed against credit card are actually pre-approved loans and require no collateral and documentation. However, it mustn't be confused with cash withdrawals using credit cards. Cash withdrawal via credit cards usually comes with a hefty of interest or surcharge, whereas, a loan against credit card carries less interest. A loan approved against credit card is offered either as a demand draft or is transferred directly to the borrower's bank account. Such loans are desired when the credit limit of the card is not enough to meet any urgency or when a person is in a catastrophic situation. Having said that, there are a few things which must be known before opting for this loan.
Benefits of a loan availed against credit card
Loans against credit cards have some exclusive benefits. If you have a credit card and a decent credit score, you can enjoy these benefits without much muddling.
Availing a loan against credit card has bonus aids along with some caution. It is an unsecured loan and should be taken into consideration only in case of an emergency. However, a number of attractive benefits are making this financial instrument popular day by day.
|Bank||Interest Rate||Minimum Age (in yrs.)||Minimum Income (in Rs.)|
|14.25 - 16.25%||Age criteria not provided||Income criteria not provided|
Axis Bank Limited
|13.25%||Minimum 24 years||Information not available|