Loan on Credit Card : Getting an instant loan on your credit card can be one of the fastest ways to get quick money during emergencies. Whether you need urgent funds for medical expenses, education, travel, or any other personal reason, many banks offer an easy way to apply for a loan on credit card.
The process is simple, fast, and does not require much paperwork. In this article, we will explain everything you need to know about applying for an instant credit card loan in 2025.
What is a Loan on Credit Card?
A credit card loan is a type of pre-approved personal loan offered to credit card holders by their banks. It is different from your credit card limit and comes with a fixed repayment period, interest rate, and EMI options. The amount is directly credited to your bank account or sometimes added to your card balance for usage.
It is called “instant” because if you are eligible, you can apply and get the loan approved within minutes—without the need for extra documents or physical visits to the bank.
Key Features of an Instant Loan on Credit Card
Here are the main features of credit card loans:
- Quick approval: Most loans are approved instantly if you are eligible.
- No paperwork: No need to submit additional documents.
- Flexible EMIs: You can repay in monthly installments (3 to 48 months).
- Separate from card limit: In most cases, the loan is over and above your credit card limit.
- Instant credit: The money is transferred directly to your bank account or available on your card.
- Minimal processing fee: Some banks charge a small processing fee, while others offer it for free.
Who Can Apply for a Credit Card Loan?
Not everyone can apply for a credit card loan. The bank usually offers it to selected customers based on their:
- Credit score
- Credit card usage
- Payment history
- Income
- Existing relationship with the bank
If you have been using your credit card regularly and paying on time, your chances of getting an instant loan are high.
How to Apply for an Instant Loan on Credit Card?
Applying for a credit card loan is very easy. Here’s how you can do it:
1. Bank’s Mobile App or Net Banking
- Log in to your bank’s mobile app or internet banking.
- Go to the “Credit Card” section.
- Look for the option like “Instant Loan on Credit Card” or “Pre-approved Loan”.
- Check eligibility, enter the amount and choose EMI tenure.
- Confirm and accept terms.
- The loan will be credited instantly.
2. SMS or Call
- Some banks allow you to apply by sending a simple SMS or by calling customer care.
- If eligible, a bank representative may guide you through the process.
3. Through ATM (if available)
- Insert your credit card into the bank’s ATM.
- Look for the “Loan on Credit Card” option.
- Follow the steps shown on the screen.
Top Banks Offering Instant Credit Card Loans in 2025
Here are a few major banks that offer loans on credit cards:
| Bank Name | Minimum Loan Amount | Tenure | Interest Rate |
|---|---|---|---|
| HDFC Bank | ₹5,000 | 6 to 48 months | Starts from 11% |
| ICICI Bank | ₹5,000 | 3 to 36 months | 13%-18% approx. |
| SBI Card | ₹10,000 | 6 to 24 months | 13%-22% approx. |
| Axis Bank | ₹5,000 | 3 to 24 months | 12%-20% approx. |
| Kotak Mahindra | ₹3,000 | 6 to 36 months | Depends on usage |
Note: Loan terms vary based on cardholder profile and bank policies.
Benefits of Applying for Loan on Credit Card
Here’s why many people choose this option:
- No need to visit a branch
- Quick cash availability
- No collateral required
- No need to submit fresh documents
- Suitable for small to medium expenses
- Track EMIs easily via credit card statement
Things to Consider Before Applying
Before taking a loan on a credit card, keep these points in mind:
- Interest Rate – These loans are generally costlier than personal loans.
- Processing Fee – Check if any one-time fee is charged.
- Prepayment Charges – Some banks may charge you for early closure.
- EMI Burden – Make sure the EMI doesn’t affect your monthly budget.
- Credit Card Limit – Taking a loan may reduce your available card limit.
- Default Penalties – Missing EMI payments can lead to penalty charges and impact your credit score.
Tips for a Successful Application
- Keep your credit score high (above 700).
- Avoid maxing out your card every month.
- Repay your credit card dues on time.
- Keep your income records updated with the bank.
- Use your bank’s mobile app regularly.
EMI Calculation Example
Let’s say you take a ₹50,000 loan on your credit card at an interest rate of 14% for 12 months.
- Monthly EMI = approx ₹4,510
- Total interest paid = approx ₹1,120
- Total repayment = ₹51,120
Most banks show you an EMI calculator before you apply, so you can plan your budget easily.
Documents Needed (Usually None)
If you’re a pre-approved customer, no documents are required. But in rare cases, your bank may ask for:
- PAN card
- Income proof
- Identity proof
- Address proof
This happens if your credit history or income is not updated in the system.
Real-Life Uses of Instant Credit Card Loan
- Pay hospital or medical bills
- Fund a last-minute trip or travel booking
- Pay children’s school or college fees
- Buy electronics or home appliances
- Renovate your house
- Clear high-interest debts
FAQs – Frequently Asked Questions
Q1: Is a loan on credit card the same as cash withdrawal?
No. Loan on credit card is a separate facility. Cash withdrawal from credit card incurs high interest from day one, but credit card loans have fixed interest and EMIs.
Q2: How long does it take to get the loan?
If you are eligible, you can get the amount within minutes, sometimes instantly.
Q3: What if I don’t repay the EMI?
Missing EMIs will attract late fees and negatively affect your credit score. It’s important to repay on time.
Q4: Can I pre-close the loan early?
Yes, most banks allow pre-closure but may charge a small fee. Check your bank’s policy before applying.
Q5: Is there any processing fee?
Some banks charge 1%-2% as a processing fee, while others offer zero processing on promotional offers.
Q6: Will it affect my credit card limit?
Yes, in some banks, your available credit limit may be reduced temporarily after taking the loan.
Q7: Can I apply if I have a new credit card?
Usually, banks offer this loan to users who have had the credit card for at least 6 months with good usage history.
Final Words
Getting an instant loan on a credit card is a quick and easy solution when you need urgent money. It offers flexibility, speed, and no paperwork. But remember to compare interest rates, EMI terms, and your repayment ability before applying. Use this facility wisely, and it can be a great financial tool in times of need.
