When using a credit card or applying for a new one, you must be aware of the monthly and yearly interest rates. Of course, the plan should be to make due and timely payments so as NOT to incur any interest and penalties, but emergencies do happen, and you need at least an idea of the possible expenses in case of late payments.
Checking the Bajaj Finserv RBL Bank credit card loan interest rate is easy, and we will show you how to do so in this article. The credit card loan interest rate is far lower than a regular personal loan, as the amount is subject to your available cash withdrawal limit on the card. In this sense, it is a ‘pre-approved’ loan. Anyway, when you apply for a Bajaj Finserv RBL Bank credit card, get an idea of not just the card’s late payment interest but also the loan interest rates in case you need emergency funds.
What is a Credit Card Cash Loan?
In times of emergency, when you need hard cash in a matter of minutes and do not have the time to go through the process of a personal loan application and verification – a credit card loan is an answer. It is also wise if the loan amount required is relatively small and does not warrant a long application procedure. It is simple: you convert all or part of the available cash credit on your Bajaj Finserv RBL Bank credit card into a personal loan payable in easy EMI installments. The entire process is paperless and can be done at the convenience of your phone banking app.
Interest rate charges are just 1.16% per month, and you can pre-close at any time without a pre-closure penalty. This beats any personal loan interest rate given by any bank. Provided your available credit card cash limit is sufficient for your current needs. The credit card loan is the best possible option for immediate funds at your disposal.
Loan Against Credit Card
A loan against a credit card is not quite the same as a cash limit loan. In times of emergency, your credit card issuer can issue you a loan against the entire credit limit, with minimum or no paperwork, and yes, at an affordable interest rate compared to personal loan interests.
All necessary documentation and collateral were already submitted when you applied for your credit card. Therefore, the paperwork for a loan against a credit card is negligible. Suppose you have been using the card for a while. In that case, the card issuer will consider factors like spending habits, timely repayments, and repayment capability before endorsing and approving your credit card loan. Your loan will be sanctioned if all is well, no questions asked!
Since the Bajaj Finserv cards are in partnership with RBL bank, the bank reserves the authority to approve or disapprove your credit card loan. As mentioned above, if your credit and repayment history are healthy, there should be no problem availing of this facility.
A Comparison of Interest Rates
The difference is huge if you would like to compare the interest rates of a personal loan against a credit card loan. Banks issue personal loans at an interest no less than around 12% at best. Top-up loans are charged even higher. On the other hand, the credit card loan facility offered by Bajaj Finserv and RBL gives you an interest of just 1.16%! This leaves no doubt when it comes to which is the better option for a loan. The only reason you would want to choose a bank loan over a credit card loan is when the amount required is higher than the limit available on your credit card.
You have a further advantage when using a credit card cash limit loan – it is interest-free if you can pay back the amount within 50 days! This is the absolute top option if you need a small emergency amount and do not wish to borrow from a friend or family, and you are sure you can pay it back in a month and a half.
Credit card loans are easy to get, as you have already submitted all necessary documentation and collateral at the time of the card application. The issuer is already aware of your repayment history and can instantaneously decide to approve or reject your loan. The interest rates on credit card loans are far less than any personal loan interest rates, at just 1.16%. Also, no interest is levied if you can repay the credit card cash limit loan within 50 days! Use personal loans over credit card loans only if your requirement exceeds the credit card limit. The Bajaj Finserv credit card interest rate is determined as per the credit card loan. Which Bajaj Finserv charges as per its schedule and rate
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