Credit cards are no longer just a mode of payment—they have become a financial lifeline for millions of Indians. Apart from offering cashback, discounts, and reward points, credit cards also provide instant loan facilities. Known as credit card loans or loan-on-credit-card, these loans allow cardholders to borrow cash instantly without pledging any collateral.
In 2025, almost all major banks in India are offering credit card loans with quick approval, flexible tenure, and attractive interest rates. This article explains how credit card loans work, their features, benefits, interest rates, and how you can avail them instantly.
What is a Credit Card Loan?
A credit card loan is a type of unsecured personal loan provided to existing credit cardholders. The loan is either:
- Pre-approved (offered by banks based on usage and payment history), or
- On-request (customers apply for a loan against their available credit limit).
The loan amount is disbursed directly into your savings account, and you can repay it in EMIs ranging from 3 months to 60 months.
Why Choose a Credit Card Loan?
✅ Benefits:
- No collateral required – Purely unsecured loan
- Instant approval & disbursal – Loan in your account within minutes
- Flexible repayment – EMI options available
- Higher approval chances – Based on credit card usage
- Convenience – Apply through mobile app, net banking, or customer care
❌ Drawbacks:
- Higher interest rate compared to personal loans
- Loan eligibility depends on card usage and repayment history
- Can reduce your overall credit card spending limit
Types of Credit Card Loans
- Loan on Credit Card (EMI Loan)
- Amount disbursed into your bank account
- Fixed EMIs with 3–60 month tenure
- Cash Advance Loan
- Withdraw cash from ATM using your credit card
- Higher interest + cash withdrawal charges
- Balance Transfer Loan
- Transfer outstanding balances from other credit cards to one card at lower interest
- Useful for debt consolidation
Top Banks Offering Credit Card Loans in India 2025
1. HDFC Bank Credit Card Loan
- Interest Rate: 15% – 21% p.a.
- Loan Amount: Up to ₹10 Lakhs
- Tenure: 6 – 60 months
- Processing Fee: 1.5% of loan amount
- Features:
- Pre-approved offers for eligible cardholders
- Easy online application via HDFC app
- Flexible repayment options
2. ICICI Bank Credit Card Loan
- Interest Rate: 13% – 20% p.a.
- Loan Amount: ₹15,000 – ₹20 Lakhs
- Tenure: 3 – 60 months
- Processing Fee: 2% of loan amount
- Features:
- Loan directly credited to savings account
- EMI calculator available on app
- Instant approval for pre-approved customers
3. SBI Card Loan
- Interest Rate: 12% – 18% p.a.
- Loan Amount: ₹10,000 – ₹20 Lakhs
- Tenure: 6 – 48 months
- Processing Fee: 2% of loan amount
- Features:
- Loan against available credit limit
- Flexible EMI repayment
- Low-interest balance transfer option
4. Axis Bank Credit Card Loan
- Interest Rate: 13% – 22% p.a.
- Loan Amount: ₹20,000 – ₹15 Lakhs
- Tenure: 6 – 60 months
- Processing Fee: 1.5% – 2%
- Features:
- Instant disbursal through Axis mobile app
- Pre-approved loan facility
- Suitable for emergency needs
5. Kotak Mahindra Bank Credit Card Loan
- Interest Rate: 14% – 22% p.a.
- Loan Amount: Up to ₹15 Lakhs
- Tenure: 6 – 48 months
- Processing Fee: 2%
- Features:
- Online and offline application
- EMI-based repayment
- Loan on EMI available for big purchases
Eligibility Criteria for Credit Card Loan
- Credit Card Holder: Must have an active credit card with good repayment history
- Credit Score: Preferably 700+
- Income: Stable monthly income required
- Usage History: Regular use of credit card increases approval chances
- Pre-approval: Some loans are offered only to pre-approved customers
Documents Required
Usually, no additional documents are required apart from your credit card account details. However, some banks may ask for:
- PAN Card
- Aadhaar Card
- Salary Slip / Bank Statement (if required)
Step-by-Step Process to Get a Credit Card Loan
- Check pre-approved offers in your credit card account (via app, SMS, or net banking).
- Select loan amount & tenure as per eligibility.
- Submit request online via app or customer service.
- Loan approval & disbursal – Amount credited directly to your bank account.
- Repay via EMIs – Automatically deducted with your monthly credit card bill.
Pros and Cons of Credit Card Loans
✅ Pros:
- Fastest loan disbursal process
- No collateral required
- EMI repayment option
- Useful during emergencies
❌ Cons:
- Higher interest rates than LAP or personal loans
- Reduces available credit limit
- Can increase credit card debt burden if misused
Tips to Get the Best Credit Card Loan Deal
- Maintain a high credit score (700+) for better offers
- Compare interest rates across banks
- Avoid cash advance loans due to high charges
- Opt for shorter tenure to save on interest
- Pay EMIs on time to avoid late fees & penalties
FAQs
1. How is a credit card loan different from a personal loan?
👉 Credit card loans are offered instantly to existing cardholders without fresh documentation, while personal loans require a full application.
2. Can I get a credit card loan without income proof?
👉 Yes, in most cases, banks use your credit card history instead of income proof.
3. What is the maximum loan I can get on my credit card?
👉 It depends on your card limit and pre-approved eligibility, usually up to ₹20 Lakhs.
4. Are credit card loans safe?
👉 Yes, they are safe as long as you borrow from reputed banks.
5. Can I foreclose a credit card loan?
👉 Yes, foreclosure is allowed but charges (1%–3%) may apply depending on the bank.
Conclusion
A credit card loan is a convenient and instant way to get cash without collateral. In 2025, leading banks like HDFC, ICICI, SBI, Axis, and Kotak Mahindra offer attractive loan-on-credit-card facilities with flexible repayment options.
If you are already a credit cardholder with a good repayment history, you can easily avail a credit card loan within minutes. However, since the interest rates are slightly higher than traditional loans, it is advisable to use this option only for short-term emergencies and repay on time to avoid debt traps.
