Ever found yourself in a situation where you needed quick cash but didn’t want to go through the lengthy process of applying for a traditional loan? If you’re an Axis Bank credit cardholder, you might already have access to funds without even realizing it! The Axis Bank credit card loan feature can be your financial lifesaver during emergencies or when you need to make a large purchase.
In this guide, I’ll walk you through everything you need to know about getting a loan on your Axis Bank credit card – from understanding what it is to applying for it and managing repayments. Let’s dive in!
What is a Credit Card Loan and How Does It Work?
Before we get into the specifics of Axis Bank’s offering, let’s understand what a credit card loan in general. Simply put, it’s a facility that allows you to borrow money against your credit card’s available limit. Think of it as a way to convert a portion of your credit limit into cash that gets transferred to your bank account.
What makes a credit card loan different from just swiping your card? When you use your credit card for purchases, you typically have a grace period to pay off the amount without incurring interest. But with a credit card loan, you’re essentially taking out a structured loan with fixed EMIs (Equated Monthly Installments) and a predetermined repayment period.
The beauty of this system is that understanding what a credit card loan is and how it differs from personal loans can help you make better financial decisions. Unlike personal loans that might require extensive documentation and approval time, a loan on a credit card is pre-approved and requires minimal paperwork, especially for existing customers.
Benefits of Taking a Loan on a Credit Card with Axis Bank
Taking a loan on credit card with Axis Bank comes with several advantages that make it an attractive option for many cardholders:
- Quick Processing: The Axis Bank credit card loan offers instant approval and disbursement, making it perfect for emergencies. The funds are typically credited to your account within 24 hours of approval.
- Zero Documentation: As an existing Axis Bank credit cardholder, you don’t need to submit any additional documents. The bank already has your information on file, making the process completely paperless.
- Flexible Loan Amounts: You can borrow anywhere from ₹25,000 to ₹15 lakhs, depending on your credit limit and eligibility.
- Convenient Repayment Options: Choose a repayment tenure that suits your financial situation, ranging from 12 to 48 months.
- Multiple Application Channels: Apply through the mobile app, internet banking, or by giving a missed call – whatever’s most convenient for you.
Remember, taking a loan on a credit card is a quick way to meet your immediate financial needs without additional paperwork. But like any financial product, it’s important to understand the terms and conditions before proceeding.
How to Apply for an Instant Loan on a Credit Card with Axis Bank
Ready to apply for an instant loan on a credit card? Axis Bank offers multiple ways to do this, making the process incredibly convenient. Here’s a step-by-step guide for each method:
1. Through the Axis Bank Mobile App
This is perhaps the easiest and quickest method:
- Log in to your Axis Bank mobile banking app
- Navigate to the ‘Loans’ section
- Select ‘Instant Loan on Credit Card’
- Check the pre-approved loan amount available to you
- Select your preferred loan amount and tenure
- Review the interest rate and EMI details
- Confirm the application
- The amount will be credited to your linked savings account almost instantly
2. Via Internet Banking
If you prefer using a computer:
- Log in to your Axis Bank internet banking account
- Go to the ‘Loans’ tab
- Click on ‘Instant Loan on Credit Card’
- Follow the on-screen instructions to select your loan amount and tenure
- Confirm your application after reviewing the terms
- The loan amount will be disbursed to your savings account
3. Through Customer Care
If you prefer speaking with a representative:
- Call Axis Bank customer care at 1800-209-5577
- Verify your identity through the standard security questions
- Request for an instant loan on your credit card
- The representative will guide you through the available offers and the application process
4. Missed Call Service
For those who prefer minimal interaction:
- Give a missed call to the designated number (check the Axis Bank website for the current number)
- You’ll receive an SMS with your pre-approved loan offer
- Follow the instructions in the SMS to complete your application
Eligibility Criteria for Axis Bank Credit Card Loan
Before you apply, it’s important to know if you qualify. You can check your eligibility for an instant loan on credit card through the Axis Bank mobile app. Generally, you need to:
- Be an existing Axis Bank credit cardholder
- Have a good repayment history
- Maintain a healthy credit score
- Have sufficient available credit limit
- Meet the bank’s internal credit assessment criteria
The application process for an instant loan on credit card is completely paperless for existing customers, making it incredibly convenient when you need funds quickly.
Interest Rates and Charges for Axis Bank Credit Card Loan
Understanding the cost of borrowing is crucial before taking any loan. Here’s what you need to know about the interest rates and fees for an axis bank credit card loan:
Interest Rates
The interest rates for a loan on credit card typically range from 12.60% to 22.20% per annum. The exact rate offered to you depends on:
- Your credit profile
- Your relationship with the bank
- Your repayment history
- The loan amount and tenure you choose
Processing Fee
Axis Bank charges a processing fee of 2% of the loan amount or ₹500, whichever is higher. This fee is non-refundable and is deducted from your credit limit along with the loan amount.
Other Charges
- Foreclosure Charges: If you decide to repay your loan before the end of the tenure, you may be charged a foreclosure fee (typically around 3% of the outstanding amount).
- Late Payment Fees: Missing EMI payments will attract late payment charges as per the bank’s schedule of charges.
- GST: A Goods and Services Tax (GST) of 18% is applicable on all fees and charges.
When considering a loan on credit card, always check the processing fees and repayment terms to avoid any surprises later.
Is Taking a Loan on Credit Card Good or Bad? Important Considerations
Whether a loan on credit card is good or bad depends on your financial situation and repayment capacity. Let’s look at some factors to consider:
When It’s a Good Idea
- Emergencies: If you’re facing a medical emergency or an urgent home repair, a credit card loan can provide quick access to funds.
- Consolidating High-Interest Debt: If you have multiple high-interest debts, consolidating them through a credit card loan with a lower interest rate might save you money.
- Short-term Cash Flow Issues: If you’re expecting funds in the near future but need money immediately, a credit card loan can bridge the gap.
When It’s Not Ideal
- Unnecessary Expenses: Taking a loan on credit card is good or bad depending on whether you’re using it for emergencies or unnecessary expenses. Using it for luxury purchases or non-essential spending is generally not advisable.
- Long-term Financial Needs: For larger, long-term financial requirements, a personal loan or a secured loan might offer better interest rates.
- Already Struggling with Debt: If you’re already having trouble managing your existing debts, adding another loan might worsen your financial situation.
Experts suggest that a loan on credit card is good or bad depending on your ability to repay on time and your overall financial health. Always assess your repayment capacity before applying.
Repayment Options for Your Loan on Credit Card
Managing your loan repayment effectively is crucial to maintaining a good credit score and avoiding additional charges. Axis Bank offers several convenient repayment options:
1. Auto-Debit Facility
The most hassle-free option is to set up an auto-debit from your Axis Bank savings account. This ensures that your EMI is automatically paid on the due date, eliminating the risk of missing payments.
2. Internet Banking
You can make payments through Axis Bank’s internet banking portal:
- Log in to your account
- Navigate to the ‘Loans’ section
- Select your credit card loan account
- Choose the ‘Make Payment’ option
- Enter the amount and complete the transaction
3. Mobile Banking App
Similar to internet banking, you can make payments through the Axis Bank mobile app with just a few taps.
4. Axis Bank ATMs
You can also make loan repayments at any Axis Bank ATM using your debit card.
5. NEFT/IMPS Transfer
If you have an account with another bank, you can transfer the EMI amount to your Axis Bank loan account using NEFT or IMPS.
Remember, consistent and timely repayment not only helps you avoid late fees but also positively impacts your credit score, which can be beneficial for future loan applications.
Conclusion
An axis bank credit card loan offers a convenient way to access funds during financial emergencies or when you need quick cash for planned expenses. With its minimal documentation, instant approval, and flexible repayment options, it can be a valuable financial tool when used responsibly.
However, like any loan, it’s important to borrow only what you need and can comfortably repay. Always read the terms and conditions carefully, understand the interest rates and charges, and plan your repayment strategy before applying.
If you’re an Axis Bank credit cardholder facing a cash crunch, check your eligibility for a credit card loan through the mobile app or internet banking. You might be pleasantly surprised at how quickly you can access funds without the typical loan application hassles!
Frequently Asked Questions
1. How do I apply for an instant loan on my Axis Bank credit card?
You can apply for an instant loan on your Axis Bank credit card through multiple channels:
- The Axis Bank mobile banking app
- Axis Bank internet banking portal
- By calling customer care at 1800-209-5577
- Through the missed call service
The process is paperless for existing customers, and funds are typically disbursed within 24 hours of approval.
2. What is the interest rate for Axis Bank credit card loans?
The interest rates for Axis Bank credit card loans range from 12.60% to 22.20% per annum, depending on your credit profile, relationship with the bank, and the loan amount and tenure you choose. Additionally, there’s a processing fee of 2% of the loan amount or ₹500 (whichever is higher).
3. How can I check my eligibility for an Axis Bank credit card loan?
The easiest way to check your eligibility is through the Axis Bank mobile app or internet banking portal. Log in to your account, navigate to the ‘Loans’ section, and select ‘Instant Loan on Credit Card.’ The system will automatically check your eligibility and display the pre-approved loan amount available to you. Alternatively, you can call customer care for assistance.
4. Is it a good idea to take a loan on my credit card?
Taking a loan on your credit card can be beneficial in certain situations, such as emergencies or short-term cash flow issues. However, it may not be ideal for unnecessary expenses or if you’re already struggling with debt. Consider factors like interest rates, your repayment capacity, and the purpose of the loan before deciding. If you’re using it for a genuine need and can comfortably manage the repayments, it can be a convenient option.
5. How do I repay my Axis Bank credit card loan?
You can repay your Axis Bank credit card loan through various methods:
- Setting up an auto-debit from your Axis Bank savings account
- Making payments through internet banking or the mobile app
- Using Axis Bank ATMs
- Transferring funds via NEFT/IMPS from another bank account
The EMI amount will be billed to your credit card statement each month, and you need to ensure that you pay at least the minimum amount due to avoid late payment charges.
6. Can I foreclose my Axis Bank credit card loan early?
Yes, you can foreclose your Axis Bank credit card loan before the end of the tenure. However, there may be foreclosure charges (typically around 3% of the outstanding amount) applicable. To foreclose your loan, you can contact customer care or request foreclosure through internet banking or the mobile app. Early repayment can save you interest costs in the long run, so it might be worth considering despite the foreclosure fee.