What Is a Credit Card Loan?
A Credit Card Loan allows cardholders to convert large purchases or outstanding balances into easy EMIs or obtain short-term cash loans through their credit card limit. This helps in managing expenses without immediate full repayment.
Key Features of Credit Card Loans
- Convert purchases into EMI
- Balance transfer to lower-interest cards
- Flexible repayment tenure (3–24 months)
- No collateral required
- Instant online approval
Credit Card Loan Interest Rates 2026
Rates vary by bank, card type, and tenure.
| Lender / Bank |
Interest Rate (p.a.) |
Loan Amount |
Tenure |
| HDFC Bank |
12% – 18% |
Up to ₹5 lakh |
3–24 months |
| SBI Card |
13% – 20% |
Up to ₹3 lakh |
3–18 months |
| ICICI Bank |
12.5% – 19% |
Up to ₹4 lakh |
3–24 months |
| Axis Bank |
13% – 20% |
Up to ₹3 lakh |
3–18 months |
Eligibility Criteria
- Valid credit card from participating bank
- Good credit score (700+ preferred)
- Minimum 6 months of active credit card usage
- Age between 21–65 years
Documents Required
- Identity proof (Aadhaar, PAN, Passport)
- Address proof (Utility bills, Voter ID)
- Credit card statement
- Bank account for repayment
Credit Card Loan EMI Example
If you convert a ₹1,00,000 purchase into a 12-month EMI at 15% interest:
- Monthly EMI: ₹9,000 approx.
- Total interest payable: ₹8,000 approx.
- Total repayment amount: ₹1,08,000 approx.
Advantages and Disadvantages
Advantages
- No collateral required
- Quick disbursal and approval
- Flexible repayment tenure
- Helps manage large expenses
Disadvantages
- High interest if not converted to EMI
- Late payment penalties
- Limited loan amount based on card limit
How to Choose the Best Credit Card Loan
- Compare interest rates across banks
- Check processing or conversion fees
- Choose tenure based on monthly budget
- Read terms & conditions carefully
- Ensure timely repayment to avoid penalties
Frequently Asked Questions (FAQs)
Can all credit cards be used for loans?
No, only participating cards allow EMI conversion or balance transfer loans.
Is prepayment allowed?
Yes, prepayment is usually allowed, sometimes with a small fee.
How fast can funds be accessed?
Funds or EMI conversion is instant or processed within 24–48 hours.
Can I convert part of my credit card bill into EMI?
Yes, most lenders allow partial conversion of purchases or balances.
Author: All Finance Store Credit Solutions Team
Expertise: Credit Card & Short-Term Loans
Last Updated: January 2026
Disclaimer: This page is for informational purposes only. Credit card loan terms, interest rates, and eligibility vary by lender. Always verify details with official sources before applying.