What Are Credit Card Loans?

Credit card loans are short-term personal loans offered by credit card issuers or banks, allowing cardholders to borrow against their credit limit for flexible use. Loanpao helps you choose the best credit card loan options in India for 2025.

How to Use Credit Card Loans Effectively

Steps to make the most of credit card loans:

  1. Assess Your Needs: Use for urgent expenses like medical bills or travel, not discretionary spending.
  2. Compare Offers: Look for low interest rates (12–18% p.a.) and flexible tenures (3–60 months).
  3. Check Eligibility: Ensure a credit score of 700+ and a good repayment history.
  4. Plan Repayments: Use Loanpao’s EMI calculator to align EMIs with your budget.
  5. Avoid Overborrowing: Borrow only what you can repay within 1–2 years.

Eligibility Criteria for Credit Card Loans

Typical requirements in 2025:

Criteria Details
Credit Score 700 or above
Credit Card Usage Active card with 6+ months of usage
Repayment History No missed payments in the last 12 months
Income Minimum ₹25,000/month (salaried); ₹5 lakh p.a. (self-employed)
Age 21–60 years

Documents Required for Credit Card Loans

Common documents include:

  • KYC Documents: PAN, Aadhaar, or passport.
  • Income Proof: Salary slips (3 months) or ITR (2 years).
  • Bank Statements: Last 3–6 months.
  • Credit Card Statements: Last 6 months to verify usage.

Benefits of Credit Card Loans

Key advantages include:

  • Quick Disbursal: Funds available within 24–48 hours.
  • Flexible Usage: No restrictions on fund usage (e.g., medical, travel, emergencies).
  • Lower Rates: 12–18% p.a. compared to 24–36% for unpaid credit card balances.
  • EMI Options: Repay in 3–60 months for affordability.
  • Pre-Approved Offers: Available for existing cardholders with good credit.

Risks and Costs to Consider

Potential drawbacks:

Cost/Risk Details
High Interest Rates 12–18% p.a., higher than personal loans (10–14% p.a.)
Processing Fees 1–2% of loan amount
Default Penalties Late payment fees (₹500–₹1,500) and credit score damage
Debt Trap Risk Overborrowing may lead to unmanageable EMIs

How Loanpao Supports Your Credit Card Loan Needs

Loanpao offers:

  • Comparison of credit card loan offers from top banks and issuers.
  • EMI calculators to plan affordable repayments.
  • Guidance on eligibility and documentation.
  • Expert advice on avoiding debt traps.
  • Streamlined application process for quick approvals.

Frequently Asked Questions

A loan against your credit card limit, repaid in EMIs, for flexible use.

Credit card loans are pre-approved, faster, but often have higher interest rates.

Yes, there are no restrictions on usage, unlike specific-purpose loans.

Timely repayments boost your score; defaults can reduce it by 50–100 points.

Typically 24–48 hours for pre-approved loans with minimal documentation.

Loanpao compares offers, provides EMI calculators, and guides you through the process.

How to Get Started with Loanpao

Simplify your credit card loan journey with Loanpao:

  1. Visit Loanpao’s application page to explore credit card loan options.
  2. Use the EMI calculator to plan repayments.
  3. Compare lenders for the best rates and terms.
  4. Apply with expert support for quick approvals.

Apply Now