In just a matter of a few years, we have gone from a situation where there was little to no access to credit facilities to overflowing credit options. Of late, getting loans and other credit facilities has become so easy that almost anyone can apply for it and get it sanctioned almost instantaneously.<\/p>\n
If you\u2019re looking for a quick loan, one of the best options available to individuals such as yourselves has to be – loan on a credit card<\/a>. Yes, you read that right. Your credit card<\/a> doesn\u2019t just allow you to make purchases on credit but also lets you borrow loans too. Wish to get to know more about credit card loans and how they work? Continue reading.<\/p>\n As it is quite evident from the name itself, a loan on a credit card is just that; a loan that you avail using your credit card. If you have a good track record of having used your card responsibly and paying all of the dues on time, banks and other financial institutions generally allow you to avail of loans<\/a> using your credit card.<\/p>\n Now that you\u2019re aware of what credit card loans are, let\u2019s take a quick look at a few of the features and benefits that you get to enjoy. A loan on a credit card comes pre-approved by the bank or the financial<\/a> institution. This effectively means that you don\u2019t have to apply for a loan and wait for the bank to process your application and then decide on whether to give you the loan. Instead, you can get the loan disbursed almost instantaneously to your bank account.<\/p>\n One of the primary advantages of availing of a loan using a credit card<\/a> is the fact that they\u2019re unsecured. This means that you don\u2019t have to pledge any of your assets as collateral to get a credit card loan.<\/p>\n The interest rates on the loans are also very attractive. They\u2019re usually on par with personal loans; maybe sometimes even lower, depending on your credit score.<\/p>\n Generally, credit card loans<\/a> come with a flexible tenure ranging from 6 months to 60 months. You can choose the repayment tenure that you are comfortable with, without having to take on an unnecessary burden. Want to know how credit card loans work? Here\u2019s an example that can help you understand.<\/p>\n Assume that you have a credit card<\/a> with a credit limit of Rs. 2 lakhs. You use your card responsibly, are prompt when it comes to repaying all your dues, and you ensure that you pay the entire outstanding amount and not just the minimum amount. Also, you have a very good credit score and credit history too.<\/p>\n Taking all of this into consideration, the bank offers you a pre-approved credit card loan of Rs. 1.5 lakhs, which you can avail of at any point in time. Now, say that you\u2019re in urgent need of some funds. You choose to avail of a loan on your credit card and proceed to borrow Rs. 1 lakh at an interest rate of 14% for a tenure of 24 months.<\/p>\n The amount that you borrowed as a loan will now be blocked on your account, reducing your credit limit from Rs. 2 lakhs to Rs. 1 lakh. Each month, you will have to repay a specific amount as EMI, which will be charged to your credit card automatically. Sounds interesting, right?<\/p>\n Let\u2019s now take a look at how you can apply for a credit card loan<\/a>.<\/p>\n Now, the application process specified above is to give you a general idea of what it would take to avail a credit card loan. Depending on the institution whose credit card you have, the process might vary a little. As you may have realized already, a loan on a credit card<\/strong> is only offered to those who already possess a credit card. If you don\u2019t have one already, don\u2019t fret. You can apply for one within just a few minutes through the Finserv MARKETS app. Download the app on your smartphone right now and check out the various credit card options and offers that are currently available.<\/p>\n","protected":false},"excerpt":{"rendered":" In just a matter of a few years, we have gone from a situation where there was little to no<\/p>\n","protected":false},"author":146,"featured_media":53620,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[31],"tags":[10773,4095,10770,10771,10772,3265],"_links":{"self":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/53619"}],"collection":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/users\/146"}],"replies":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/comments?post=53619"}],"version-history":[{"count":1,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/53619\/revisions"}],"predecessor-version":[{"id":53621,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/53619\/revisions\/53621"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/media\/53620"}],"wp:attachment":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/media?parent=53619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/categories?post=53619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/tags?post=53619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What Is a Loan on a Credit Card?<\/h2>\n
\nAlso read:<\/span> Blocked On Snapchat: Figure Out What-To-Do, The Fixes, and FAQs<\/a><\/span>\n1. Credit Card Loans Are Preapproved<\/h3>\n
2. Credit Card Loans Are Unsecured<\/h3>\n
3. Reasonable Interest Rates<\/h3>\n
4. Customizable Repayment Tenure<\/h3>\n
\nAlso read:<\/span> How To Make $5000 In A Month? 20+ Easy Ways To Make 5K Dollar Fast + Tips!<\/a><\/span>\nHow Does a Loan on a Credit Card Work?<\/h2>\n
\nAlso read:<\/span> Top 10 Best Artificial Intelligence Software<\/a><\/span>\nHow to Apply for a Credit Card Loan?<\/h2>\n
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\nAlso read:<\/span> How To Turn Off Likes + Views Count On Instagram? Do It In Just 4 Simple Steps<\/a><\/span>\nConclusion<\/h2>\n