Step-by-step guide on how to get a Loan on Credit Card

A Credit Card is a great way to make payments for things you want to buy now and pay later. But sometimes you want more than a month or 45 days to make the payment. At times like these, a Loan against Credit Card is an ideal option. You can repay the amount in easy monthly instalments instead of paying the entire amount on the due date.

But how can you get a Loan against Credit Card?

A Loan against Credit Card is a pre-approved loan. It requires no documentation and processing and the funds are instantly disbursed into your account.

For example, if you are an HDFC Bank account holder, you can check if you are eligible for a Loan against Credit Card by logging on to your NetBanking account. If you are eligible you can immediately apply for the loan and get the funds in seconds.

You can apply for a Loan on Credit Card only if your card is registered for NetBanking.

To register your card, log into NetBanking and follow these steps:

• Click on the cards tab
• Select Transact on the left menu
• Select Register new card
• Fill in the details and press submit.

To check if you are eligible for loan on a registered card, here’s a detailed step-by-step guide:

• Login to your NetBanking account
• In your NetBanking account, click on cards
• On the left menu, click on Transact
• HDFC Bank offers three types of loans on Credit Card – Insta Loan (a loan within your Credit Card limit) and Insta Jumbo Loan (loan beyond your Credit Card limit) and SmartEMI (convert purchases into EMI loans).
• Follow these steps, if you opt for Insta Loan or Insta Jumbo Loan:
• Choose the card you want the loan against
• If you are not pre-approved for a loan, you will see a message that informs you of the same
• If your card is pre-approved for a loan, an application form will open. The application form will show you the maximum loan amount you are eligible for
• Enter the loan amount you need, the tenure and interest rate, choose your savings account, accept the terms and conditions and hit continue
• Verify the loan details and press confirm
• Choose a method of receiving OTP (email or SMS), and click continue
• Enter the OTP and click continue
• You will receive an acknowledgement along with a reference number and loan account number.
• The loan amount will be credited to your account instantly.
• Follow these steps, if you opt for SmartEMI
• Select the card
• Under transaction type, choose Debit, click view
• You will see a list of transactions. The transactions that are eligible for EMI will have a message next to it that says: ‘Click to know your eligibility’
• Click on the message for any transaction you want to convert to EMI
• The loan amount you are eligible for will be shown. Enter the amount you need
• Select tenure and interest rate
• Read and accept the terms and conditions
• Click continue
• Verify the loan details and confirm
• You will receive an acknowledgement along with a reference number and loan number.

Points to remember before you apply for a Loan against Credit Card:

• There is a processing fee involved for loans against Credit Cards: Rs. 500 for Insta Loan and Jumbo Loan, and 1% of the loan amount for a Smart EMI.
• There is no documentation required for any Loan against Credit Card.
• The loan amount is disbursed instantly into your account. You can even ask for the funds to be issued as a demand draft
• Your EMIs are billed as part of your monthly Credit Card statement. You must pay it by the due date.
• Usually, when you take a loan on Credit Card, your credit or spending limit is reduced to the extent of your EMI. In the case of a Jumbo Insta Loan, your credit limit is not blocked.

Are you looking to apply for an HDFC Bank Loan on Credit Card? Click here to get started.

Know more about the difference between a Loan on Credit Card and a Personal Loan here.

* Terms & conditions apply. Loan on Credit Card disbursal at sole discretion of HDFC Bank Ltd.