Many banks provide the option of getting a personal loan with a credit card. And there are many advantages to getting a loan using a credit card, such as no major documentation. But you also would need to be eligible for the loan, and for that, many things must be checked before you find the best personal loan you can get using your credit card. While checking your eligibility, you also need to be sure about the kind of personal loan you want and whether you would be able to pay it off later.
How to Apply for a Personal Loan with a Credit Card?
To get a personal loan using your credit card, below are the steps that you can follow:
- Reach the website of your credit card issuer or any other financial institution from whom you may want to get a personal loan.
- Fill out the form you may find on their website and submit it with the needed documentation to apply personal loan online.
- Once the documents are submitted, the financial institution will go through your application for a personal loan and verify it.
- After successfully verifying the documents, the bank will send the loan amount to your account or may also get a demand draft for your loan amount.
Following these simple steps, you can apply for a personal loan online and fulfill your requirements! But if necessary, you can also get a personal loan with a credit card through another bank, with whom you would have to go through a different process.
What are the Documents Needed for a Personal Loan with a Credit Card?
When getting a loan with a credit card, you may not need any documentation if you are getting a loan from your credit card issuer. However, some documents are required to get a credit card, and if you had to take a personal loan from another source, you would need similar documentation. These documents involve the following:
- Identity Proof
- Address Proof
- Passport-size photographs
- Copy of office ID card (for salaried employees)
- Salary slips (for salaried employees)
- For self-employed applicants, attested copy of ITR
- Copy of PAN card (for self-employed applicants)
- Benefits of Getting a Personal Loan with a Credit Card
Benefits of Personal Loan with Credit Card
Getting a personal loan with a credit card comes with numerous benefits, such as the following:
- The loan process involves a limited amount of documentation. As a result, the loan gets disbursed faster.
- Using the loan becomes easier since the loan is transferred directly to the bank account.
- Upon placing a request, in some situations, you get a personal loan quickly.
- When you take a loan with a credit card, the interest rates are low if you have a good credit history.
- You can get a personal loan using your credit card through an online application without going to a bank.
- You can send an application for a personal loan anytime, anywhere you want.
- Personal loans have a minimal processing fee.
- Personal loans with a credit card are generally sanctioned anywhere between 1-2 years.
- You can pay back the borrowed amount in easy monthly installments, billed to the card each month.
Conclusion
Once you are confident of the kind of loan you want, it is relatively simple to go ahead with the rest of the process. However, before the application, you should be sure that you meet the requirements of the banks, financial institutions, and online lenders. Also, you would have to wisely choose the lender with whom you can also pay back the loan, with interest and additional charges.