A credit card loan is an easy method to get your hands on money without the typical wait time and hassle associated with traditional lending options. Instead of making multiple applications, you can avail instant cash with a pre-approved credit card offer and repay it through easy EMIs. It’s convenient whenever you require fast cash for some emergency spending or when you want to borrow money through a fully digital and hassle-free model. Read on to learn more about loans on credit cards.
Eligibility Criteria for Loans on Credit Cards
A loan on credit cards is available to pre-approved cardholders only. If you have an eligible credit card and meet the bank’s internal criteria, the loan offer is extended to you directly. This allows you to access funds instantly without a separate application or documentation process.
Types of Loans on Credit Cards
In order to cater to various borrowing requirements, AU Small Finance Bank provides two types of loans on credit cards. Each option is tailored to a particular purpose, allowing cardholders the freedom of choice on how much they need to borrow and how they want to utilise their credit card limit.
SMART Loan
The SMART Loan is ideal for cardholders who require a higher loan amount without impacting their existing credit card spending capacity. With this option, the loan amount is offered over and above your AU Credit Card limit, ensuring that your card remains available for regular expenses such as shopping, bill payments, and subscriptions. It is a practical solution for larger financial needs where you want to keep everyday card usage separate from loan repayment.
Instant fund disbursal
Once you opt for the SMART Loan through the digital process, the approved amount is disbursed instantly. The funds can be credited to any savings account, giving you complete flexibility in how you use the money.
Digital journey with no documentation
The loan process is entirely paperless and digital. You don’t even have to provide any physical documents or visit a branch, so it’s easy and convenient.
Attractive interest rates
SMART Loans are offered at attractive interest rates, helping keep EMIs affordable and reducing the overall cost of borrowing compared to many short-term credit options.
Minimal processing fee
The processing fee for a SMART Loan is minimal, ensuring that upfront charges remain low and transparent.
Flexible tenures
You have the option to select tenure based on your income and financial comfort.
Xpress Loan
The Xpress Loan is designed for speed and ease, making it suitable for immediate or short-term funding requirements. With this option, you can avail a loan within your available AU Credit Card limit. Since it utilises your existing credit line, the process is extremely fast and requires minimal effort from your side.
Instant disbursement
The loan amount is disbursed instantly once approved, ensuring that you have access to funds exactly when you need them.
No documentation
The Xpress Loan follows a completely digital process with no documentation required, keeping the borrowing experience smooth and stress-free.
Low processing fee
This loan option comes with a low processing fee, making it a cost-effective choice for quick borrowing.
Competitive interest rate
Xpress Loans are offered at competitive interest rates, helping you manage EMIs comfortably over the selected tenure.
Flexible tenure
You can choose the repayment period based on monthly cash flow and current obligations.
Conclusion
A loan on a credit card is an intelligent borrowing feature if used sensibly. With SMART Loan and Xpress Loan, AU Small Finance Bank offers customers the flexibility for both larger planned expenses and urgent requirements. By choosing the right loan type and managing EMIs carefully, cardholders can enjoy easy access to funds without disrupting their regular financial routine.