Have you ever found yourself in a financial dilemma where you needed money immediately but no means to get that? There is one relatively-less-popular solution that you can fall back on in such cases - you can take a personal loan on your credit card to meet emergency cash needs. 

If you own a credit card, it is easy to apply for a personal loan on a credit card when you need money immediately. Credit card loans are pre-approved, unsecured loans that mostly do not need any documentation. Thus, they are the easiest and quickest way to get funds to manage your financial needs.

In this article, we take a closer look at personal loans on credit cards - their working, features, which banks offer them and more. 

Personal Loans on Credit Card are Different from Withdrawing Cash on your Credit Card

A very common misconception is that if you apply for a personal loan on your credit card, the bank will increase the credit limit on your card and allow you to withdraw the cash through your card. However, that's not the case. A personal loan on your credit card is provided by banks against your existing credit card. The amount you can borrow is decided by your lender. 

There is another handy option that you can use to get money immediately on your credit card. This is the cash withdrawal feature that comes along with the card. The maximum amount that you can withdraw is predetermined and is usually notified at the time of issuing the card. You can consider cash withdrawals if the amount needed is less. 

Top Banks Offering Personal Loans on Credit Card

There are many banks that offer the facility of personal loans on credit cards. Top banks which provide personal loans on a credit card are:

  • ICICI Bank

One of the largest private sector banks in the country, ICICI Bank offers an array of customer-friendly services. The bank also offers personal loans on credit cards to eligible ICICI Bank customers. The maximum loan given by the bank under this scheme is Rs.10 Lakhs with a flexible tenure range of up to 60 months(5 years). The loan amount will be credited to your savings account directly. Also, the best part is that this process requires minimal documentation.

  • HDFC Bank

HDFC Bank offers personal loans on credit cards as well. The personal loan is pre-approved and will be blocked against your credit limit. HDFC Bank offers a maximum loan of Rs.5 Lakhs with an interest rate of 1.25%. The bank offers a range of repayment tenure to 48 months or 4 years. Since the loan is pre-approved, there is only a little documentation needed and the loan is credited to your savings account almost immediately.

  • IDBI Bank

IDBI Bank offers a loan on your credit card which is known as a General Credit Card Loan. The minimum loan amount which is offered is Rs.50,000 and the maximum is Rs.5 Lakhs. The policy tenure ranges to a maximum of 5 years and the interest rate is linked to the base rate of the bank. Customers engaged in a non-farm entrepreneurial activity are eligible for this loan.

  • Kotak Mahindra Bank

You can get a personal loan on your Kotak Mahindra Bank credit card for up to Rs.5 Lakhs with attractive interest rates. The period of repayment ranges from 6 months to 4 years. Once the loan is approved, the amount is instantly credited to your savings bank account. Eligible customers who have a good credit score, transaction history, and repayment pattern are sanctioned a personal loan against the credit card.

  • IndusInd Bank

IndusInd Bank offers loans against credit cards which includes zero documentation. A pre-qualified loan is given to you through your credit card. You can get a personal loan against your credit card limit or a loan above your credit card limit depending on your requirement. The loan against credit cards come with flexible repayment period options and attractive interest rates.

What are the features of a personal loan on a credit card?

Different banks offer varying loan schemes when it comes to loan on credit cards. Here are some of the common features of a loan on a credit card.

  • You need not submit any extra documentation, since most of the personal loans on credit cards are pre-approved, the loan is processed and disbursed quickly.
  • You will be able to convert and manage your expensive purchases into easy affordable instalments with EMI schemes offered by the issuers.
  • Some banks also offer personal loans against other bank credit cards through Balance Transfer on EMI where you can transfer the outstanding balance on other credit cards to one credit card and pay the EMI.
  • Banks also offer you the option of taking a personal loan within or over your credit limit.

Compare Loan on Credit Cards from Different Banks:

Bank/Card Issuer

Amount of Loan


Disbursal Mode and Time

Interest Rate


Within or above the credit limit

12 to 60 months depending on the loan type

Credited to HDFC Savings account



Up to Rs.5 Lakhs

Options ranging up to 36 months

Disbursal takes 7 to 8 working days

Depends on the amount and credit history

IndusInd Bank

Depending on the credit limit

Ranging from 6 to 36 months

Credited to the savings account

As per the schedule of charges

Standard Chartered

Up to Rs.5 Lakhs

Ranging from 12 to 60 months

Credited in the account within 2 days

Starts from 1.17% per month


Minimum is Rs.2000

Multiple tenure options

Can be converted to EMI within 15 days of purchase

15% to 21% per annum



A personal loan on a credit card can help you meet emergency cash needs. Credit card loans are pre-approved, unsecured loans in nature, and do not need extensive documentation. With a loan on a credit card, you have the option to convert your expensive purchases to easy EMIs. Most issuers also provide you with the option to transfer the balance outstanding from multiple cards to one single card and repay in EMIs. Since a loan on a credit card is pre-approved, it is easy to apply and is disbursed quickly when compared to other loans. Most of the loans on credit cards require no guarantor or post-dated cheques