Understand cash advances, EMI conversions and card loans — costs, risks, eligibility and smart usage tips.
A credit card loan (commonly called a cash advance or loan on credit card) converts part of your credit card limit into instant cash or a structured loan. Banks and card issuers offer several mechanisms:
These are quick ways to access liquidity — often instant — but they come with specific charges and different cost structures compared to traditional personal loans.
Credit card loans suit short-term, urgent requirements where speed matters more than cost. Common situations:
Important: for larger or long-term funding needs, compare with personal loans which may offer lower effective rates over longer tenors.
Cash advance lets you withdraw cash using your credit card. It’s immediate, but costly: cash advance fees and higher interest (often from day one) apply. Many issuers charge a percentage fee (e.g., 2–3% min ₹300) plus high daily interest.
Card issuers let you convert big purchases into EMIs at promotional or regular rates. Interest may be subsidised during offers (0% EMI), or there may be a processing fee. EMI conversion is convenient and often cheaper than cash advance if promo rates available.
Some banks offer a structured loan disbursed against card limit — features include a fixed tenure, EMI schedule and slightly lower rates than cash advance but higher than personal loan. This product is fast and useful if you need a fixed-term loan without lengthy documentation.
Balance transfer lets you move outstanding credit card balances to another card or to a personal loan at a lower interest rate — helpful for debt consolidation. Offer details differ by bank (fees, promo rates, tenor).
Credit card loans often look convenient, but total cost includes multiple elements:
Always check the Effective Interest Rate (EIR) which includes fees and gives the true cost rather than the headline rate.
Credit card loans are usually simpler to get than a personal loan. Typical eligibility:
Documentation is minimal (usually KYC already on file). For EMI conversions and card-loans, the issuer may ask for a few additional details but generally no fresh income proof is required.
Before taking a credit card loan, compare with a personal loan on these metrics:
Rule of thumb: use credit card loan for small, urgent needs; choose personal loan for larger or planned expenses where cost matters more than speed.
Yes. Unlike merchant purchases that may have a grace period, cash advances often attract interest from the date of withdrawal. Check your card T&C.
Not always. EMI conversion may be limited to selected merchants or transactions above a minimum amount. Promotional offers may have specific eligibility rules.
Yes — issuers and merchants occasionally run 0% or subsidised EMI promotions. These can be highly cost-effective but read the fine print for processing fees, minimum purchase, and tenure.
Cash advances themselves do not directly lower score, but if they increase your utilisation or lead to missed payments, your credit score may be affected. High utilisation is a negative signal.
Yes. Issuers set a cash advance limit (a portion of the overall credit limit). ATM withdrawal limits and issuer policies apply.
EMI conversion often processes quickly — sometimes instantly or within 24–48 hours. Loan-on-card processing may take 1–3 days depending on issuer verification.
Some issuers allow top-up facilities or repeat conversions if your card and repayments are in good standing. Check the issuer’s product terms.
Calculate Effective Interest Rate (EIR) including interest, conversion fees, cash advance fees and taxes. Use the issuer-provided EIR or ask customer support to compute it for your scenario.
Prioritize high-interest debts first (usually card advances). Create a payoff plan based on interest rates and available cashflow.
Often EMI conversions can be closed or foreclosed; conditions and charges vary. Check with issuer and merchant before availing the offer.
This page provides general information about credit card loan products for educational purposes only. Costs, interest rates, fees and product terms vary by issuer and change over time. Always check the exact terms with your credit card issuer before availing any cash advance, EMI conversion or card loan. All Finance Store is not responsible for financial decisions you make based on this information. For personalised guidance, consult your card issuer or a qualified financial advisor.