What Is a Credit Card Loan?
A credit card loan is an instant personal loan offered by your card issuer based on your credit limit or spending history. Unlike regular credit card spending (which you repay by due date), this is a fixed loan amount with EMIs.
🏦 Think of it as borrowing money from your credit card – with EMI-based repayment and interest.
Key Features of Credit Card Loans
| Feature | Description |
|---|---|
| Type | Unsecured Loan |
| Loan Amount | Based on available credit limit |
| Interest Rate | 13% – 24% per annum (varies by bank) |
| Tenure | 3 to 60 months |
| Processing Time | Instant to a few hours |
| Credit Score Impact | Yes (based on repayment behavior) |
Pros
✅ Instant disbursal (no paperwork)
🧾 No documentation if you’re pre-approved
💸 Flexible repayment via EMIs
⏳ Longer repayment time than regular credit card dues
📲 Fully digital process – via mobile app or bank portal
Cons
📈 Higher interest rates than personal loans
🔒 Uses up your credit limit – reduces future spending power
💳 May lead to debt traps if not repaid on time
📉 Impacts CIBIL score if you miss EMIs
Credit Card Loan vs Personal Loan
| Criteria | Credit Card Loan | Personal Loan |
|---|---|---|
| Approval Time | Instant | 24–48 hours |
| Interest Rate | 13–24% | 9–18% (via Vizzve) |
| Documentation | None (pre-approved) | Basic KYC required |
| Max Loan Amount | Limited by card limit | Up to ₹25 lakhs |
| Tenure | 3–60 months | 12–72 months |
💡 Tip: Use Vizzve’s smart comparison tool to check if a personal loan is cheaper than your card loan!
Eligibility for Credit Card Loan
Must have an active credit card
Minimum 6–12 months usage
No payment defaults
Pre-approved loan limit from the bank
Good CIBIL score (preferably 700+)
Interest Rates of Popular Credit Card Loans (2025)
| Bank/Credit Card | Interest Rate (Annual) | Processing Fee |
|---|---|---|
| HDFC Bank | 15% – 21% | 0% – ₹999 |
| ICICI Bank | 13% – 22% | ₹500 – ₹999 |
| SBI Card | 13.5% – 22% | Nil – ₹1,500 |
| Axis Bank | 14% – 24% | ₹500 |
| Vizzve Finance Partners | Starting at 11.99%* | ₹0 – ₹500 |
Vizzve Tips to Use Credit Card Loans Smartly
📆 Choose the shortest tenure you can afford
🔁 Don’t convert existing dues into multiple EMIs – this adds cost
💳 Don’t max out your credit limit – keep utilization <30%
🧠 Always compare with personal loans or BNPL options via Vizzve
FAQs
Q1. How do I apply for a credit card loan?
✅ If pre-approved, just use your bank’s app or SMS service.
Q2. Can I prepay a credit card loan?
💰 Yes, but check for prepayment charges (usually 2–3%).
Q3. Will it affect my credit score?
📉 Yes, both positively (on-time EMIs) or negatively (missed EMIs).
Q4. What happens if I don’t repay?
🚨 Your card may be blocked, interest will increase, and CIBIL score will fall.
Published on : 22nd July
Published by : SMITA
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed