What is Credit Card loan?
Credit cards serve many useful functions, including the ability to pay for purchases when you don't have cash on hand. The credit card issuer essentially loans you the money to make the purchase, and you will be able to repay that loan at a later date while being charged a certain interest rate.Nowadays mostly people use Credit Card. Its safe and secure.
Features of a Loan on Credit Card:
Different banks offer comprehensive loan scheme when it comes to loan on credit cards. Listed below are some of the features of loan on credit card.
1. Since most of the loan on credit cards are pre-approved, you need not submit any extra documentation, the loan will be processed and disbursed quickly.
2. With EMI schemes offered by the issuers, you will be able to break your expensive purchases into easy affordable instalments.
3. Issuers also offer you the option of taking a loan within or over your credit limit.
4. Some banks also offer loan against other bank’s credit card through Balance Transfer on EMI where you can transfer the outstanding balance on other credit cards to one credit card and pay the EMI.
Repaying the Loan
Repayment of the credit card loan is usually accomplished through a monthly statement, which details the amount of money the card holder has borrowed as well as any interest charges and fees. There is usually a minimum amount that must be repaid each month, although the borrower may opt to repay more. The borrower can use the coupon attached to the statement to make a payment by mail, with interest charged on any amount carried over from month to month. Many lenders also have online repayment options.