Benefits of Credit Card based loan

What are all the Benefits of Credit Card based loan ?. How can we get it ?. What is the eligibility to get this Loan ?. Contact S & P Bank Loan Consultants in Chennai, Tamil Nadu, India.

What is credit card based loan?

Availing loan against credit card is a credit card based loan. Let’s understand the meaning of it. As you all know, Card allows you to buy things and services without cash. Issuer of card pays on behalf of you. You get a credit and need to pay the same in specified time provided by issuer. Banks offer loan against existing Cards.

This loan is based on credit card usage and repayment history. It is a collateral free loan and a type of personal loan used for meeting all your emergency situations. And also used for any of your personal needs. It can be applied online like any other loans.

Many banks offer pre-approved credit card based loan through a click on net-banking or phone banking.

Eligibility for Credit Card based loan:

Holding a credit card is mandatory for this loan. Loan depends on good record of repayment of all loan obligations. Loan amount depends on the limit of the Card.

Eligibility on income level and credit score

Limit of credit card depends on your income level and credit score. You can even withdraw cash from credit card for financial needs. But the interest rate on cash withdrawal from credit card is higher than Loans Based on credit card.

You can top-up the loan amount, when bank increases the Card limits.

Parameters on Loan sanctions

Both personal and Loans based on credit card are unsecured loans. It serves for personal needs. Let’s understand the difference between personal loan and Loans based on credit card. Based on few parameters we can differentiate the two loans.

Nature of Loan:

Personal loan is unsecured loan sanctioned in the basis on need of the borrower. You can buy big items with the personal loan. Benefits of Loans based on credit card is those are all unsecured loans. But they are pre-approved loans based on usage of the card. You can buy smaller items in this loan.

Documentation:

At the time of applying personal loan, bank needs documents like income proof, identity proof and address proof. No documents needed for Loans based on credit card, as the loan approval based on Card limit. Documents submitted during credit card suffice for credit card loan too.

Eligibility:

You can apply for personal loan with any bank. No need of being customer of the bank where you intend to apply. Whereas in Loans based on credit card, you need to hold credit card of the lender to avail this loan.

Process time:

Due to documentation formalities, personal loan takes longer time compared to Loans based on credit card. It can be instantly credited to your savings account to fulfill your finance needs.

Loan Period:

Personal loan usually given for 12 months to 60 months. While Loans based on credit card is given for a shorter period of time. Generally this loan is  for a period of 24 months.

Interest rate and duration:

Interest rate of Loans based on credit card depends on your credit card usage. It depends on your repayment track record of the customer. It varies from customer to customer. Generally lower interest charged on this loan compared to personal loans.

Tenure of Loans

Normally the tenure of Loans based on credit card will be 24 months. Borrower can fix lesser tenure based on their need.

Advantages of Loans based on credit card over Personal loan:

One can get Loans based on credit card with quick disbursement of loan without any documentation. It gives instant cash whenever in need. It provides attractive and low interest rate compared to all other loans. You can repay the loan in EMIs. It provides flexible tenure as per your need. Low processing charges compared to personal loans.

Loans for emergency situations

In emergency situations and need of the hour, credit card based loan can be availed within hours. In emergency situations, you receive loan without any hassles on documentation. Availing this Loans gives you relief on fund raising emergency situations.

Contact the Best Bank Loan Consultants

We here help you to decide the type of loan suited for you based on your situation. Our loan consultants provide you end-to end solutions for all types of loans. They also assist in comparative analysis of various Benefits of Credit card based Loan for the credit cards you have.

You call the given phone number or fill in your details and need of Loans based on credit card, we would get in touch with you.