11 May 2026
A credit card loan is a type of pre-approved loan facility, where a bank offers you money based on your credit card usage and repayment track record.
Unlike other loans, you do not need to submit proof of income. You can think of it as a "loyalty bonus" from your bank that can be converted into cash whenever you face an emergency.
What is it?: A pre-approved loan that gives you instant cash based on your credit card’s history.
How long does it take?: Usually disbursed within a few minutes.
2026 Interest Rates: Typically range between 12.60% to 18% p.a., depending on your bank and credit score.
Getting a loan against a credit card is fairly easy and hassle-free. Here are some details related to how these loans work -
Since you are already a customer of the bank, they have your KYC (Know Your Customer) and income data.
You can repay the loan within a fixed number of months, usually 60 months or 5 years.
If you have been paying your bills on time, the bank "blocks" a portion of your limit or gives you a fresh limit.
That money is sent to your savings account. If you don’t have a savings account with your credit card issuer bank, the loan amount is transferred via NEFT or Demand Draft.
It works as an unsecured personal loan and has no restrictions on the end usage of the funds.
If you are an HDFC customer, you will likely see two options. Understanding the difference is crucial for your spending power. Let’s see how they are different.
|
Feature |
Insta Loan |
Insta Jumbo Loan |
|---|---|---|
|
Definition |
This loan is within your credit limit. If your credit limit is ₹1 Lakh and you take an Insta Loan of ₹60,000, your available limit for shopping becomes ₹40,000. As you pay your EMIs, your limit gradually opens up again. |
A jumbo loan doesn’t block your credit limit. You can take a ₹2 Lakh Jumbo Loan and still have your full ₹1 Lakh limit available for daily spends. |
|
Credit Limit Impact |
Blocks your card limit |
Does NOT block your limit |
|
Availability |
Based on the unused limit |
Over and above the limit |
|
Statement |
Part of your regular card bill |
Separate loan account/statement |
Just like you can apply for any loan through multiple channels, here are your options to apply for a loan on your credit card -
Internet banking is the most common way of banking for people who have internet connectivity. All you have to do is log in to your account using your credentials. And then you can apply instantly.
If you access your bank on its official app, you can apply for a loan on your credit card through there, too. Just log in, and go to the section on ‘Loan on credit card’. You can, then, start the application process.
You can also call your bank’s customer care number and apply through there. If your bank doesn’t have the option of applying through customer care or IVR, they will help you with the procedure.
The oldest and most foolproof method is to simply visit the bank branch and talk to the officials there. If your bank’s branch is close to your house or on your way, this is one of the simplest ways to apply for a loan on your credit card.
Apply for High Limit Credit Cards upto ₹5 Lakh*
You must be wondering what the difference is between a personal loan and a credit card loan. Here is a table highlighting them -
|
Criteria |
Credit Card Loan |
Personal Loan |
|---|---|---|
|
Approval Time |
Instant (Seconds) |
Within 24 Hours |
|
Documentation |
Zero |
Income Proof/KYC needed |
|
Interest Rate |
Slightly Higher (13%+) |
Starts lower (10.5%+) |
|
Best For |
Midnight emergencies |
Planned high-value expenses |
Short and direct answer, no.
You may have heard of another term related to credit cards - ‘The Cash Advance’. It is important to note that a cash advance is not the same as a credit card loan. They may sound similar, but they are completely different. Let’s see how they differ through this table -
|
Criteria |
Credit Card Loan |
Cash Advance (ATM) |
|---|---|---|
|
Definition |
It is a structured EMI product |
It is withdrawing money from an ATM using your credit card |
|
Interest Rate |
8% to 20% p.a. |
30% to 42% p.a. |
|
Repayment |
Monthly EMIs (12–60 months) |
Full payment in the next bill |
|
Processing Fee |
Usually 1% - 2% |
High (Min ₹500 per withdrawal) |
|
Impact |
Defined loan account |
High credit utilization |
Here are the most popular banks for credit cards and how much they charge for loans on credit cards -
|
Bank |
Approx. Interest Rate |
Processing Fee |
|---|---|---|
|
Starting from 0.84% per month |
From ₹499 to ₹999 |
|
|
Starting from 13% p.a. |
1% to 2% + GST |
|
|
From 9.99% to 21.00% p.a. |
2% of the loan amount of ₹500, whichever is higher |
|
|
From 8.5% to 46.2% p.a. |
2% of the loan amount of ₹499, whichever is higher |
Credit cards are a great way to keep track of your expenses, build your credit history, and earn various rewards. However, you can also use credit cards to take an unsecured loan. These loans work like personal loans but are easier to access. You can apply for a loan on your credit card by getting in touch with your credit card provider. To find your next credit card, apply through Moneyview.
For most major banks like HDFC, ICICI, and Axis, the transfer is instant. The money reaches your linked savings account within minutes of your OTP confirmation.
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Disclaimer
The starting interest rate depends on factors such as credit history, financial obligations, specific lender's criteria and Terms and conditions. Moneyview is a digital lending platform; all loans are evaluated and disbursed by our lending partners, who are registered as Non-Banking Financial Companies or Banks with the Reserve Bank of India.
This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.
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