Everything You Should Know About Loan Against Credit Card

loan against credit card
loan against credit card

There are several reasons why one may want to go in for a loan against a credit card. One might want to avoid having to pay the interest payable on swiping one’s credit card, or might need access to ready cash, for example. Some people might even opt for a credit card in order to have easy access to a loan, in the event that they have some emergency. 

Getting a loan against a credit card is a big convenience for exactly the reasons that we hinted at above. These reasons might be linked to the following situations. 

  • A person might prefer to invest their earnings rather than holding the same at a low-interest rate in their savings account. At the same time, they might want access to capital in case of an emergency or any sudden requirement. 


  •  The interest rate payable on a loan against a credit card might be lower than the interest incurred on credit card spends. For example, with the Bajaj Finserv RBL Bank SuperCard, one can get a loan — payable within 90 days — at a flat 1.16% interest. Compare this to interest on credit cards which can go up to 3.5% per month, compounded as the months go by! Always check the rate of interest being proposed by the credit card company for the loan against their credit card.


  • Linked to the above point, some cardholders might take a loan against one credit card to pay off another credit card debt. 


  • One might also take a loan against their credit card to pay off a home loan EMI or to undertake foreclosure of a home loan. This might also be the case for a car loan or student loan. 


  • Some cardholders might stumble on some irresistible investment, and might be coming upon the required capital too late to meet the investment deadline. Such a person might take a loan against their credit card because they know that the capital will be coming in soon. They can use the new capital to pay off their loan, and would not have missed the investment deadline. 


  • Given higher rates of interest incurred on credit card purchases made when traveling, a person might choose to get a loan against their credit card. The loan amount can be withdrawn as cash and converted to the currency of their travel destination. 

We have described six common situations in which a loan against your credit card can prove to be a tremendous convenience. However, there might be countless such situations in which such a facility might prove to be a boon. 

As such, it might make sense to have a credit card handy. Getting a credit card is no hassle with most banks and NBFCs like Bajaj Finserv, offering the option of online application. Here’s how to apply for a credit card, like the Bajaj Finserv RBL Bank SuperCard that we talked about earlier.

  • Go through the 11 variants of the Bajaj Finserv RBL Bank SuperCard, and choose the one that best suits your requirements. You get ATM card usage and loan access across all variants, but the benefits and rewards are different to cater to different audiences. 


  • Check the fees and charges and then put down your mobile number to sign up for a pre-approval.


  • Once pre-approved, upload scanned copies of a handful of easy documents including photo ID, passport-sized photos, and address proof, and apply for the credit card. 

To wrap it up, a loan taken against a credit card is akin to a personal loan, and credit cardholders can easily apply for loans against their cards. Furthermore, unlike personal loans, where you might have to provide certain documents, a loan against a credit card requires no documentation. A loan against a credit card is an unsecured loan, and is a good option for individuals that require urgent cash, and might not have — or want — to use the money in their savings account.

Naina Kapoor

I am a full time blogger and a passionate writer. I love to write on niches like Finance and electronics market, lifestyle, Loans, technology, etc. Travelling and online shopping is my area of interest and for my best of knowledge I let myself updated with any introduction of EMI card, e-aadhar card, cibil score, retail technology and marketing trend.

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