Apart from allowing you to make instant purchases and pay later, a credit card also comes in handy during emergencies or when you need quick funds. This is because, with a credit card, you can avail of a loan that is usually equal to your credit limit.
How does a credit card loan work?
Also known as a loan against credit, a credit card loan works just like a personal loan, though it has certain differences in terms of repayment tenor and interest rates. The first factor you need to keep in mind is eligibility. The issuer requires you to have a good credit score and history, as this shows that you are a creditworthy borrower and will repay the loan without any default.
Furthermore, since a credit card loan is unsecured, you don’t have to pledge collateral to avail of it. This type of credit is easier and quicker to obtain as it involves minimal to no documentation, depending on your issuer. Once you avail of the credit card loan, you repay the sum along with interest, as you do in the case of a personal loan.
For instance, when you get the Bajaj Finserv RBL Bank SuperCard, one of India’s most rewarding credit cards, you can avail a loan that you can use when in need. Thus, you don’t have to submit any documents. What’s more, this attractive credit card charges a nominal interest rate of 1.16% along with a flat 2.5% processing fee on this loan for up to 90 days.
Now that you know that you can take a personal loan against credit card to leverage your finances. Take a look at how to avail it.
How to get a loan on credit card?
Applying for a credit card loan is simple, and you can initiate the process in one of the following ways:
- Visit your issuer’s nearest branch and submit the application form and additional documents, if required
- Visit the issuer’s website and apply for the credit card loan from your account
Fortunately, with the Bajaj Finserv RBL Bank SuperCard, you don’t have to undergo any hassles, be it visiting the branch or applying for a credit card loan on the website. Here, you can avail of a personal loan on your credit card from anywhere, at any time, through the RBL MyCard App.
Since the issuer assigns you a credit limit, you can avail of a loan easily by converting this limit into a 90-day personal loan at a nominal interest rate. You can further repay the borrowed sum in the form of 3 easy EMIs.
Besides offering an easy and instant loan on credit card, the SuperCard also has other features as follows:
- Up to 20,000 reward points as joining bonus
- 50-days interest-free ATM withdrawals
- Annual savings up to Rs. 55,000
- Discounts and EMI financing on purchasing accessories, clothes and groceries from Bajaj Finserv partner stores
- 5% cashback on making a down payment at Bajaj Finserv EMI Network partner stores using reward points
- Reward points on achieving milestones
- Discount on movie tickets each month
- Security features like in-hand security and zero-fraud liability cover
- Excellent reward points for every spend
If you don’t have a SuperCard yet and wish to avail of one, be sure to check your offer to view a customised deal and apply via the same. Once approved, you are ready to use the SuperCard and enjoy greater financial freedom, with a range of additional benefits.
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