What is a loan on a Credit Card, and how does it work?

August 08, 2021

What is a loan on a Credit Card, and how does it work?

A Credit Card is the common mode of payment these days. Right from groceries, lifestyle to gadget shopping, you can use it to buy anything. However, if you need urgent cash, then you can use your Credit Card to apply for a loan. Read further, to know more about a loan on a Credit Card, and how it works.

Often, you may find yourself in a situation where you are unable to meet your financial obligations. Although it is easy to apply for a personal loan, a pre-approved loan against a Credit Card facility will give you instant access to funds, thus saving your time. Let’s get to know about a loan on a Credit Card, and how it works.

What is a Loan on a Credit Card?

A Loan on Credit Card is a type of Personal Loan and a pre-approved facility. It does not require you to go through extensive documentation, except for paperwork, to ensure your eligibility. It is an unsecured loan, that means you do not have to pledge any collateral or security in exchange for the loan amount. ICICI Bank offers this facility in the form of a Personal Loan on Credit Card, to select existing customers, after evaluating their credit history, transaction patterns and spending. You can apply for a loan at ICICI Bank at an attractive Credit Card Loan interest rate.

How does the Loan on a Credit Card work?

The most significant advantage of a Loan on Credit Card is that you get access to emergency funds that you can use to pay school fees, EMIs, vacations, among others. The disbursement is instant. As an existing Credit Card customer with your preferred bank, you can avail a Personal Loan amount of up to Rs 20 lakh, at attractive interest rates. What’s more, the documentation is minimal, and you have the flexibility to repay the loan amount in 60 months. ICICI Bank offers attractive and competitive interest rates for a Loan on Credit Card.

If you are looking for immediate funds for personal use, then you can easily apply for a Personal Loan on Credit Card, especially if you own any ICICI Bank Credit Card. Customers who have a good track record of transaction patterns, repayment history with respect to Credit Card spends, are eligible for a Personal Loan on Credit Card, subject to internal policies of the bank.

The loan amount gets credited to your savings account. In case you’re using a Credit Card of a preferred bank, but do not have a Savings Account with the bank, then the loan amount is transferred through NEFT or Demand Draft.

Pre-selected customers can apply for a Personal Loan on Credit Card, through the ICICI Bank iMobile Pay app or the Internet Banking facility.

Terms and Conditions apply.

 

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