A credit card loan is a short-term, unsecured financing option offered by various financial institutions. Such advances are offered to cardholders against their pre-determined credit limit.

Loan against a credit card can prove significantly beneficial, as it allows an individual to access a substantial amount with minimum to nil hassle for application and disbursal. As an existing customer, cardholders enjoy pre-approved offers, as well as reduced processing fee while applying for such credits.

There are several such factors associated with a credit card debt that a borrower should know about -

• These types of loans usually offer up to 80% of the approved credit limit of a particular card. The approved amount may increase or decrease depending on a cardholder’s credit history and credit utilization.
• Reputed financial institutions charge minimum processing fees while sanctioning such a loan. For example, a credit card loan against the Bajaj Finserv RBL Bank SuperCard requires a flat 2.5% processing fee. This helps keep the overall cost to a minimum.
• Borrowers can enjoy the utmost flexibility during the repayment of such credits. Lenders offer the provision of prepayment, as well as EMIs to conveniently repay the debt.

Credit card loans are becoming a convenient option for individuals seeking instant financial backing. The quick disbursal and minimum cost associated with financing help prospective borrowers significantly.