You can also process this loan from the credit card’s smartphone application, making it a fast and hassle-free process.
Your credit card is a fantastic addition to your wallet for several reasons. You have increased purchasing power, added financial security, and can enjoy the luxury of a globally-accepted payment mode. However, the perks of your credit card do not end there. Some issuers even give you the option to take a loan against your credit card.
This feature is especially helpful during emergencies or when you face a cash crunch, as these loans offer instant funding without much ado. This loan is unsecured in nature, which means that you’re not required to pledge any collateral to avail it. To help you better understand a loan against a credit card, here are 4 important things you must know.
Pre-approved nature
In most cases, credit card issuers offer a pre-approved loan on credit card offer. This offer doesn’t require you to provide any additional documents and is easy to avail. Pre-approved offers are a great feature because you can avail a loan on such offers online, by just clicking on the offer link. This undoubtedly hastens the whole borrowing process making it appropriate for emergencies.
Loan amount
When you take a loan against a credit card, the amount you’re sanctioned is up to your credit limit. Your credit limit is assigned to you at the time of application and you can request an increase over time, as your credit score increases or when you can prove that you’re able to handle more credit. Issuers use your credit limit to assign a loan amount to you, so if you have credit card dues that you haven’t repaid, you won’t be able to receive a loan up to your entire credit limit.
Interest payable
As you will be borrowing credit in the form of a loan, you are required to make interest payments based on the amount you’re sanctioned for. When you take a loan against a credit card, some issuers let you take advantage of a grace period, or an interest-free period, wherein you’re not charged any interest on repayment of the loan. The interest rate varies across lenders and knowing the rate is essential before you apply for one as these can sometimes be higher than expected.
Repayment tenor
The tenor for repayment of a loan against a credit card varies across lenders. In the case of Bajaj Finserv RBL Bank SuperCard, you’re given an interest-free period of 90 days, through which you can repay the loan in 3 easy EMIs without paying anything extra over and above as interest charges.
Understanding these key factors of a credit card loan is essential to protecting your financial health. Additionally, before you take a loan against a credit card, you need to make sure you’ve opted for the right issuer who has features that add to your affordability. The Bajaj Finserv RBL Bank SuperCard is one such credit card. Using this card, you can avail of an emergency loan any time you want by paying just a minimal processing fee.
You can also process this loan from the credit card’s smartphone application, making it a fast and hassle-free process. Besides the credit card loan, the SuperCard also has the option to convert any purchases of Rs.3,000 or more into 3 easy-to-play EMIs, allowing you to make big-ticket spending affordably.
To take advantage of this credit card, check your pre-approved offer online by simply entering your name and mobile number. Select a card of your choice from the 8 exclusive SuperCard variants and enjoy annual savings up to Rs.55,000!
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