While you are applying for a loan against your credit card, you need not look for any documentation. Technically a personal loan requires documentation to support the eligibility. But for a loan against a credit card, one did not have to look for any documentation. Often a person can get confused between a loan against the card and cash withdrawal on the credit card.
To make the concept simple, one should understand that a loan against your credit card means that you will get an increase in your credit limit from the bank. The bank would provide this loan against the existing credit card. Those in immediate need of credit can take the help of a loan against your card.
It can help you deal with your emergency during any unpredictable financial condition. Before you take any loan with the help of your credit card, you must keep these few things in mind.
- Most banking and non-banking institutions offer loans against your credit card. These act as pre-approved loans. One can easily apply for these kinds of loans. The bank would offer immediate disbursal of the loan amount after the approval of the loan. You can receive the credit limit after the loan gets approved. Any cardholder can expect this process to get completed within 60 minutes.
- One does not require documentation before applying for a credit card. But if you want to apply for a loan, you have to get a credit card. Therefore whenever you are applying for a card, you have to provide all the required documents to the financial institution. Based on these documents and the relationship you share with the financial institution, you will receive your loan sanction letter against that credit card. The bank generally asks for the address proof and identity proof and the income tax return for the self-employed people, and the last 3 months salary statement for the salaried people.
- Before checking for a loan against a credit card, you must fulfill the various terms and conditions. Normally a bank would extend this facility to both the new and existing customers. It becomes imperative to get a card before availing of this facility. You must also have a good credit history. It can help you to get the loan at a good rate of interest. Any cardholder who has an improved or high-income level can apply for the loan. With the rise in income level, you can also get yourself transferred to the gold category. It can also increase the eligibility criteria of your loan.
- The application process of a loan against a credit card happens to be very simple. You can apply for a personal loan after visiting the financial institution’s official website. Along with that, you have to submit the various necessary documents. The bank would later verify these documents and check your credit before approving your credit card. You can also apply for the same after physically visiting the nearest branch of your bank. Once you reach the bank with the necessary documents, you will be contacted by our representative from the financial institution. They will help you to undergo the process smoothly.
There are various features and benefits that you can get if you choose to avail loan against credit card. The first and foremost benefit is getting instant cash whenever you require it. Along with that, you can receive a reduced rate of interest on every cash withdrawal. With such quick disbursal and fast processing, taking a loan against any credit card seems quite convenient. Also, you can repay the amount in equated monthly installments. You can get the bill along with your credit card at your convenience. With no documentation and a low processing fee, taking a loan against your credit can be one of the simplest ways to get financial assistance from any financial institution.