New Delhi:Loans against credit cards aren’t an uncommon phenomenon, as most banks are now offering cardholders loans against credit cards at varying interest rates.
Card-holders using a credit card can easily apply for an instant loan against their credit cards. These loans are quite similar to personal loans. However, know that while a personal loan takes a couple of days to get approved, a loan against credit card is pre-approved.
Additionally, a loan against a credit card does not require documentation, unlike a personal loan. Because of which, this unsecured loan option is one of the quickest and easy options to raise finance to cover emergency financial needs.
Most banks like ICICI Bank, HDFC Bank, HSBC Bank, and Citibank in India offer loans against their credit cards. For instance, HDFC Bank offers ‘insta loans’ and ‘insta jumbo loans’ against HDFC Bank Credit Cards. These are pre-approved loans, and the bank offers immediate disbursal of the amount once the loan is approved.