Hello friends, welcome to all of you in RKwebnews. Today we are going to talk about how to get a credit card loan in 3 days.
The number of credit card users in the country is increasing rapidly. In the era of Corona, the economic condition of the people is being badly affected and people are also taking loans on credit cards. Taking a loan from a credit card is easy these days, but taking a loan from a credit card can prove to be harmful to you. So try to take a loan only in case of emergency.
Presently, credit cards are being used for making various types of bill payments like paying electricity bills for buying flight tickets, etc. Cashback offers and reward points are also available for shopping with credit cards. Along with all these attractive features, credit cards also offer loans. But, it is important to know what are the advantages and disadvantages of credit card loans. Tax and investment expert Balwant Jain says taking credit card loans is very expensive. The interest charged on the loan on this is 24 percent to 36 percent per annum. Hence, it becomes very expensive.
As tax and investment experts say, it is an unsecured loan, sometimes the borrower defaults. So instead of taking a personal loan or taking a gold loan can be the right choice.
a loan against a credit card is pre-approved, and it depends on the bank. Most of the banks offer EMI schemes. With this, you do not have to worry about repaying the loan. Tax and investment experts say that the EMI scheme is the most popular monthly installment. There are no charges if all money is paid in one go when shopping with a credit card, otherwise, there is an option to make a minimum payment. Jain says that the option of paying less money gives convenience, but the rate of interest on it is high.
Institutions prefer to give loans against credit cards, but for this, you need to have a good credit history, apart from how your repayment history also matters.
Jitendra Solanki, a registered investment advisor with SEBI, says, “Every effort should be made to avoid taking credit card loans. Because the interest in it is very high. Apart from loans against a credit card, there are many other options that one should try.
What is Loan Against Credit Card?
It is a type of unsecured personal loan that you can meet your financial need by availing instant loan with the help of your credit card. Banks provide this loan to help meet the financial needs of an individual. A loan against a credit card is considered to be the best option for those who are in urgent need of money and have to deal with unforeseen personal situations.
You can opt for these types of loans when the cash withdrawal limit on a person’s credit card is not sufficient to meet his financial needs. In addition, you pay higher interest rates on credit card cash withdrawals. People prefer to take it as banks charge lower interest rates on loans against credit cards. And the loan is disbursed quickly with very little documentation. The amount received from the loan is given to you in the form of a demand draft or by transfer to your bank account. Given that credit card loans charge less interest than cash on credit cards, the debt on your credit card may seem financially viable. That’s why most people prefer to take a loan instead of a credit card. Loans given on credit cards are also called pre-approved loans or pre-qualified loans.
What is credit card loan eligibility?
A person will be eligible to get a loan against his credit card if he fulfills all the following conditions:
- By the way, most of the banks provide loans on credit cards for both existing and new customers.
- To get this type of loan, the person must have a credit card account.
- Along with this, the credit transactions done by the bank with that person should be good, as well as the past credit history of that person should be good. Banks offer loans against credit cards, but the condition is that you should have a good repayment record and high credit standing.
- A person with good and high income can also apply for a loan and also be eligible to get a top-up loan on a credit card.
- If your income level is very high, then you will be able to get your credit card transferred from the Silver to Gold category and this increases your loan eligibility and eligibility by the bank.
- You can also check your eligibility through various means like net banking, phone banking, and visiting your nearest branch before applying for these on your credit card. The amount you get as a loan depends on the credit limit of your card, which again depends on your income, past repayment history, and documentation.
However, the amount charged by a credit card as a drink is higher than the cash limit on your credit card. If the loan taken exceeds the cash withdrawal limit, your bank will stop the cash withdrawal limit on your credit card. You cannot use your card to withdraw any cash until the loan amount has been reduced and the cash withdrawal limit is not exceeded.
Documents Required for Loan Against Credit Card
If you request your credit card, then no documents are required for that. Because to take these on a credit card, you must have a credit card. Because your documents have already been submitted there when you applied for the credit card, then all the required documents are deposited in the bank. Based on all the documents that you have already submitted to the bank and the relationship you have with the bank, the bank approves the loan on your credit card. When you go to your bank to apply for your credit card, the bank asks you for the following documents:
- A photocopy of your address proof like previous electricity bill, telephone bill, driving license, passport, etc. (any of these documents).
- Some proof is required to ensure your identity like PAN Card, Voter ID Card, Driving License, Passport, etc (any of these documents).
- Your last passport size photographs.
- If you are an employee somewhere, then the salary slip of the last three months can be asked of you.
- A photocopy of an ID card from your office where you are working.
- Individuals who have their own business or business have to submit an attested photocopy of the latest ITR (Income Tax Return) and a copy of the PAN card.
How to get a credit card loan in 3 days or an instant?
The process of availing of a loan against your credit card is very simple. You have to apply for a credit card loan online by visiting the lender’s official website to apply. Also, you can find out information about whether there will be any required documents or not. Most of the bank documents are not required. After this, the bank will verify the documents submitted by you and as soon as these documents are verified and found correct, the loan amount is disbursed in your bank account within 3 days or immediately.
Another option can be that by visiting the nearest branch of the bank from which you want to take a loan facility, you can apply offline for them directly on a credit card. This option is good for those people who know things online. Are less. And don’t forget to carry all the necessary documents with you. Once there, a representative of the bank will get in touch with you and help you process the loan against your credit card application.
As soon as your documents are verified there, you will get the loan within 3 days or immediately through your account or demand draft.
There are a few things you need to keep in mind before applying for a loan against a credit card:
- When you apply for a credit card, the loan against a credit card includes a processing fee that starts from Rs 500 and can go up to a percentage as decided by the bank.
- Almost no documents are required for any loan against credit cards in most of the banks.
- The amount received from the loan is transferred to your account immediately. If you want, you can ask the bank to issue it in the form of a demand draft as well.
- There are certain conditions applicable which state that your EMI will be billed as part of your monthly credit card statement. And you have to pay it by the due date.
- Often when you take a loan against a credit card, your credit or spending limit comes down to your EMI limit. You should also keep this in mind.
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