Credit Card Loan - What is It & How to Apply Loan on Credit Card?

By OneCard   |   June 30, 2023

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Banks and financial institutions offer loans against credit cards, more commonly known as credit card loans. These cash advances let cardholders access funds quickly and conveniently, with no need for collateral. Let’s delve further into the features, eligibility criteria, advantages, and application process for a loan on a credit card.

What is Loan Against Credit Card?

Loan Against Credit Card is a financial service that allows credit cardholders to obtain instant cash by borrowing against their available credit limit. It offers quick access to funds without the need for additional documentation or collateral. The borrowed amount is then repaid in installments along with applicable interest charges.

Features of a Credit Card Loan

Credit card loans come with a host of features and benefits for customers looking for a hassle-free way to access funds:

  • Instant access to funds: Customers can get quick and easy access to funds in case of emergencies or urgent financial needs.

  • No collateral required: These loans do not require customers to provide any collateral or security to avail of the loan.

  • flexible repayment options: Credit card loans offer flexible repayment options, depending on the customer’s needs and preferences. This allows customers to choose a repayment term that suits their financial situation and budget.

ALSO READ: Understand Your Bill Repayment of OneCard Credit Card

Eligibility for Credit Card Loans

First off, customers need to meet certain eligibility criteria to be eligible for a credit card. This typically includes credit score and income. Customers who don’t have the numbers can also get a credit card against security, like a Fixed Deposit (FD).

Now let’s look at how you can get a loan on a credit card. The requirements may vary depending on the lender, but you need to meet the following requirements:

  • Having a Credit Card: To qualify for a credit card loan, it is necessary to possess a credit card like OneCard. If you do not have a OneCard, you can apply for this credit card online through the website, or mobile app conveniently.

  • Having a Good Credit Score: Customers must have a good credit score to be eligible for a credit card loan. A good credit score shows that you are a reliable borrower who will repay the loan on time.

Advantages of Credit Card Loans

Credit card loans come with numerous benefits that cater to customers seeking additional financial support. Here are a few advantages:

  • They are a quick and easy way for customers to access funds without going through a lengthy application process.
  • Unlike traditional loans, these loans do not need to provide any collateral or security to avail of the loan.
  • Credit card loans come with flexible repayment options, allowing customers to choose a repayment plan that best suits their financial needs and situation.
  • Many credit card loans offer competitive interest rates, making them a cost-effective option for customers.
  • Applying for a credit card loan is simple and hassle-free, with minimum documentation and quick approval.

ALSO READ: Best Ways to Use Credit Cards

How to Apply for a Loan on a Credit Card with OneCard?

To apply for a loan against a credit card from OneCard, follow these simple steps on how to get the loan on a credit card:

  • Log in to your OneCard account online or through the OneCard mobile app.
  • Make sure you have the OneCash feature* updated on your account.
  • Check your available credit limit.
  • Select the loan amount and repayment tenure.
  • Submit the application.
  • Once approved, the loan will be credited to your bank account.

You can apply for an instant loan on a credit card online or through the mobile app. OneCard’s credit card loan is a cost-effective way to access funds for pressing financial requirements.

*OneCash is currently available to only select customers

FAQs on Loan on Credit Card

Can I borrow money against my credit card?

Yes, you can borrow money against your credit card from many banks and financial institutions. This facility is also known as a loan against a credit card. The loan amount that you can borrow usually depends on your available credit limit.

How do loans on credit card work?

A loan on a credit card works like any other loan, but it is much more convenient and hassle-free. Once you apply for the loan, the amount is disbursed to your bank account. Then, you can use the amount to make purchases or withdraw cash.

What documents do I require to apply for a loan on a credit card?

The documents required to apply for a loan on a credit card may vary depending on the lender's policies. However, some common documents include a copy of your credit card statement, income proof, address proof, and identity proof. It is best to check with the lender for their specific requirements before applying for a loan on a credit card. In the case of OneCard’s instant loan on a credit card, the application can be made online via the app itself, and no documents are required.


**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.