In life, sudden contingencies might occur and that would require us to arrange money. The reason for the same may be anything from an unplanned medical expense for your daughter’s wedding to meet hefty expenses incurred in a tour. At times like this, all of us would approach banks for loans. In most cases, the procurement of a loan would mean that you would have to provide specific collateral to the bank. Arranging for that often takes time and proves to be an inconvenience to the customer. One of the lesser-known advantages of having an HDFC bank credit card is the fact that you can get a loan against your card without any waste of time when you need the money.
Now the amount of money that you will be getting against your card will depend on several factors. Your choice of cards will have a significant say in this. Other than that, your credit score, history of credit card bill repayment, the duration for which you have held the card and other factors will also come into play. That is why it is advised that you apply for a card at the earliest and then check HDFC credit card application status online to reap the maximum benefits.
- Spending the funds
One of the biggest advantages of getting a loan against HDFC bank credit card is the fact that you will not be questioned on how you spend the money unlike other loans, where you do not have to justify whether you are using the money for travel, medical emergency or to buy a consumer durable. Once you apply for the loan based on your eligibility and the bank transfers the money, it is only bothered with timely repayment of the amount and not on how it was spent.
- Eligibility
You must realize that since there is no collateral involved here, HDFC is taking a risk on its part by giving you the loan. Thus, it will have to have full faith in your repayment abilities before it sanctions the loan. Merely having an HDFC credit card does not make you eligible for a pre-approved loan. To find out if you qualify for the loan, you will have to reach out to the bank. There are two ways of doing so. You may log in to HDFC’s credit net banking portal and check your eligibility under the Credit Card tab. Alternatively, you may also reach out to Phone Banking (just like you did when you had to check HDFC credit card application status).
- Amount of loan sanctioned
The amount of loan that will be disbursed will depend on your credit card limit, credit score, and the overall credit history. Insta Loan is given to you when you want a loan that is within your credit card limit. HDFC bank also has a provision of Insta Jumbo Loan wherein you get loan beyond your credit limit. You will have to check with the bank to see how much loan amount you are eligible for.
- Time is taken to disburse the loan
The best advantage of getting a loan against your credit card is the fact that it is pre-approved. The fact that there is no documentation involved makes it much more straightforward and the disbursement of money by the bank happens in a matter of minutes. In some cases, customers have recorded getting the loan money in a minute. That works as a significant advantage when you are in urgent need of cash and do not have the time to run from pillar to post over it. If you need the loan amount in the form of a Demand Draft instead of an account transfer, you may request the same from the bank, and HDFC will comply.
- Repaying the loan
When you take a loan against your credit card, repaying the same is much more comfortable. The bank allows you to pay back the money in the form of EMI (easy monthly installments) over a tenure that you choose. The amortization period can be anything between 1 to 36 months. During this tenure, the EMI amount will reflect on your monthly credit card bill. As far as your credit card is concerned, its spending limit will be reduced by the EMI amount that you have opted for. A longer tenure would mean a lesser EMI for a given loan amount and vice versa. Thus, if you make any other purchases on your credit card, the value will add up to the loan bill that you are getting on your card.
Thus, you see that this is as simple as knowing your HDFC credit card application status. Now that you have realized another efficient way of getting loans, here’s wishing you can bid adieu to your financial woes.
