Applying for a Credit Card Loan? Know the procedure!

Credit Cards lets you borrow money from your bank. They offer a line of credit used to make necessary payments. However, as mutually agreed upon by the bank and the cardholder, you must repay this amount on the due date. It is essential for making large purchases on credit and fulfilling your aspirations.

A Credit Card Loan is a funding option available to cardholders instantly against the unutilised credit limit of their financial instrument. These Loans have an interest-free period of up to 90 days, making them quite affordable for all holders. The borrowers can quickly repay the amount in instalments.

Application procedure

Visit the Credit Card company website or any other bank from which you wish to borrow a Loan. Fill the form and submit along with the required documents. The bank checks your application form and verfies your documents. Upon successful verification, they disburse the amount to your Bank Account or issue a Demand Draft.

You can visit the bank branch and submit the application form and the required documents to the concerned authority for offline applications. They come with multiple benefits than other Loans.

Benefits

These Loans get quickly disbursed as they do not require documents. The amount received against them can get transferred directly to your Bank Account, making it simpler for further use. These have low-interest rates, making them economically viable. You get the amount immediately after placing the request. The online and telephonic application procedures are the most common.

Apply for it at anytime from anywhere and benefit from minimal processing fees, easy monthly instalment repayment, and a two-year long sanction period.

Eligibility

You should be an Indian citizen beyond 18 years old and either self-employed or salaried. Besides, you should have a fixed income source and a credit score of 700 or more. However, check and re-confirm with the bank.

Documents required

In most cases, no documentation process is involved while applying for Loans against Credit Cards because you have already submitted the required documents to the bank. However, when applying for a Credit Card, you need to submit the following documents:

• Address proof
• Identity proof
• Recent passport-sized photographs
• Last three months’ salary slips
• Company identity card copy
• Attested copies of the latest ITR statements
• PAN Card copy

Conclusion

You should carefully review your credit history using internet banking, mobile banking, or by visiting your nearest bank branch. If you are looking for an instant fund source to deal with urgent situations, applying for a Loan against the card would be ideal. You can apply for it when your current financial requirements exceed your existing card’s cash withdrawal limit.

Arjit Chalmela is a finance student who loves to write in his free time. He has spent considerable time researching the foreign exchange rate.