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Credit Card Loan in India
credit-card-loan-in-India

Credit Card Loan in India

Credit cards are swiftly gaining popularity in the country, given their versatile usability and exclusive rewards program. From purchasing a gadget to paying for tickets, these financial instruments come in handy frequently for daily expenses. An additional feature that boosts its beneficial usage is a credit card loan.

If you are a credit cardholder and thinking to avail a loan against it, the following article might help shed some light on the detailed procedure.

What Is A Loan Against Credit Card?

A loan against credit card is a type of personal loan offered by banks against individual credit cardholders’ unused credit limit. This means of funding differs significantly from traditional personal loans and makes for a convenient borrowing option for recurring expenses given its following features.

  • These financial products are collateral-free, i.e., applicants don’t require pledging any asset.
  • Lending institutions already have a cardholder’s details, and credit card loans are pre-approved, which makes them a quick funding option.
  • Borrowers can enjoy hassle-free repayment with EMI facility.
  • Financial bodies exercise zero control over the end-use of such funds, enabling borrowers to use this loan to pay credit card outstanding or any other requirement.

Individuals need to meet certain prerequisites for a loan against credit card eligibility.

Are You Eligible For A Credit Card Loan?

Banks issuing funds against credit limit ensure these products are extended to individuals who:

  • Own a credit card.
  • Have a good credit score.
  • Are maintaining a clean repayment history with no record of default.

As for documentation, none is required while availing an instant loan on credit card, since the lending institution already received them during a credit card application. For individuals thinking of applying for a credit card, the following documents must be kept handy.

  • Identity proof
  • Address proof
  • Recent passport-sized photographs.
  • Employee ID card and salary slips of the previous 3 months for salaried individuals.
  • Copy of recent income tax returns filed for self-employed individuals.

Although these eligibility criteria seem like no hassle at first glance, individuals unable to match any one may not be able to avail this product. Even the people qualifying for one will have to come to terms with additional requirements for a personal loan against credit card.

What Makes A Credit Card Loan Fall Behind?

Despite its documentation-free approval and prompt disbursal, a credit card loan might not be such a feasible borrowing option due to the following drawbacks.

  • Loan on credit card interest rate is remarkably high.
  • Availing a credit card loan for car requires paying substantial processing fees.
  • In case a borrower is willing to close a loan before the end of its tenure, they need to pay additional pre-payment charges.

These charges contribute to a substantially high borrowing cost, which might not be affordable for many. Plus, individuals failing to meet the CIBIL score eligibility for a credit card will also find it challenging to acquire such funds.

If you find yourself in a similar situation, a gold loan might be your best alternative.

How Is A Gold Loan Better Than Credit Card Loan?

Refer to the given table to understand in detail how a gold-backed loan is more beneficial than a credit card consolidation loan.

Particulars

Credit Card Loan

Gold Loan

Line of Credit

Unsecured

Secured

Eligibility

- CIBIL Score

Must be 750+

Not required

- Credit History

Should not have any repayment default

Not required

Rate of interest

High

Much lower

Loan quantum

Lower, depending on the lending bank and cardholder’s credit limit

Comparatively higher

Repayment tenure

Can extend till 5 years or 60 months

Maximum 12 months

Credit card

Mandatory

Not required

Have you given up your ‘credit card loan provider near me’ searches already in the hopes of an excellent gold loan provider?

To help lessen the burden of finding one, Rupeek presents you the best offers on loan against gold with an array of borrowing schemes to choose from.

Why Is Rupeek Your Most Beneficial Gold Loan Partner?

Some of the striking features that make Rupeek gold loan stand apart from other borrowing options are as follows.

  • Lenient Eligibility

Our relaxed eligibility criteria only require an individual to be at least 18 years of age and own adequate gold to qualify for a loan against that.

  • Loan At Your Doorstep

Rupeek saves you the hassle of stepping out with valuables with an instant online gold loan at your doorstep. Upon successful application, get KYC verified, and gold appraised at your address, and enjoy instant approval and a 30-minute loan disbursal.

  • Substantial Funding

Get the highest value for your assets with the highest per gram rate, sanctioning up to Rs. 1.5 crores. Potential borrowers can also check accessible fund against their gold using our online gold loan calculator.

  • Convenient Repayment

Borrowers can enjoy flexible repayment schemes, including choices of monthly EMIs or payment as per convenience, including one-time bullet payment.

  • Balance Transfer Facility

Individuals willing to shift an existing gold loan to Rupeek can choose our loan transfer facility and save up to Rs. 12,377 per lakh on interest payment. All you need to do is clear all outstanding dues with your current lender and refer to us with your existing loan pledge card.

These benefits are accompanied by Rupeek’s most salient facility of a gold overdraft loan, exclusive to existing customers.

What Is Gold Overdraft Loan Facility?

Rupeek offers an extended gold credit line facility to its customers under Rupeek Quick, whereby borrowers can pledge some additional gold and avail instant funds anytime thereafter. This facility is especially aimed to benefit individuals seeking short-term emergency loans without the hefty cost of new investment. Plus, they need not submit any additional document either since this credit is sanctioned on top of an existing loan.

Get A Gold Loan From Rupeek Today!

In order to avail all the aforementioned benefits from the comfort of your home, complete our easy online application process in three simple steps.

  • Visit the Rupeek website or download our app to place a loan request.
  • A Rupeek representative will meet you at your address to aid in a speedy verification process and gold appraisal.
  • Get loan amount transferred to your account instantly upon approval.

Do not let an unavailable credit card loan postpone your purchases. Turn to the Rupeek website today for instant funding solution with the best offers. You can also download our app for a seamless online application experience.

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Benefits of Gold Loan over Credit Card Loan.
  • <1 lakh
  • 2 lakh
  • 3 lakh
  • 5 lakh
  • 10 lakh
  • 20 lakh
Comparision Parameters Credit Card Loan Gold Loan
Interest Rate 2.39% 0.79%
Monthly Interest Amount
Eligibility & Documentation More Documents Needed Only KYC Needed
Processing Time & Disbursement 2 days to 1 week Within a day
Required Gold Weight -
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Frequently asked questions

  1. How do I know my credit card limit?

You can check available credit on your card by either logging into your online credit card account to check credit balance. You can also check the billing statement for your last purchase, which will include available credit information.

Contact on the customer service number available on the mobile app or the back of your credit card and follow the procedure to get an update on your latest credit card balance.

  1. What safety protocols does Rupeek follow for pledged gold items?

Rupeek ensures 100% safety of pledged collaterals with ISO 9011:2015 certified security processes. Our security partner Brinks ensures safe transport of gold items to and from your residence by protecting them in a bag with GPS-tracker. Upon arrival at the nearest partner bank, these collaterals are stored in secure vaults under military-grade surveillance. Additionally, all gold ornaments are fully insured against any unforeseen event like damage or theft.

  1. Can I get an Rs. 50000 credit card loan?

It depends on the available balance on your credit card. You can get a loan of that amount if you have not used it from your credit limit.

  1. How long will it take to acquire a gold loan with Rupeek?

Upon a successful online application, Rupeek offers instant doorstep service and lets you complete gold appraisal and the verification process with a loan representative at your residence. Our loan manager will ensure prompt fund transfer to your account within 30 minutes.

  1. What is the difference between a credit card loan and cash withdrawal using a card?

The primary difference between a credit card loan and cash withdrawal is that the former’s limit is more than that on the latter. Also, the interest rates on cash withdrawal are even more significant than those charged on a credit card loan.

  1. Can I extend an existing gold loan with Rupeek?

Yes, you can contact our customer support helpdesk if you want to extend an existing loan with us. We will be glad to assist you through the process.

  1. How do I choose the best gold loan lender?

Before opting for a gold loan, borrowers must always look out for the level of gold security, interest rates charged, loan value offered, repayment schemes available, and additionally payable fees. Choose the best lender only after comparing the policies offered under these categories.

  1. What is the procedure for making a part-payment of gold loan?

In order to make a part payment, visit the “Repay your Loan” page and login with your registered mobile number and received OTP. Under the payment option, choose ‘Part Payment” and proceed to pay any amount between your monthly interest and full-closure amount.

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