Personal loan overview
Loan on Credit Card EMI Calculator.
A pre-approved loan against your card's unused limit — disbursed in seconds, structured as a fixed EMI, and usually far cheaper than a cash withdrawal.
- Principal amount
- ₹2,00,000
- Total interest
- ₹49,588
- Total amount
- ₹2,49,588
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹57,009 | ₹26,187 | ₹1,42,990 |
| 2 | ₹66,174 | ₹17,022 | ₹76,815 |
| 3 | ₹76,812 | ₹6,384 | ₹3 |
This vs. a cash withdrawal
A cash withdrawal (ATM cash advance) on your credit card charges a much higher effective rate with no fixed EMI, and interest starts accruing from day one with no interest-free period. A loan on credit card is structured like a proper personal loan instead — a fixed EMI over a chosen tenure, at a materially lower rate, typically 10-25% p.a. depending on your card issuer and pre-qualification.
Frequently asked questions
What is a loan on credit card?
It's a pre-approved loan drawn against your existing credit card's unused limit — many banks let you borrow up to 90% of your available limit, disbursed directly to your bank account via NEFT/IMPS, often within seconds, with no separate application or paperwork.
How is this different from a cash withdrawal on my credit card?
A cash withdrawal (ATM cash advance) typically charges a much higher rate with no fixed EMI and interest starting from day one. A loan on credit card is structured like a regular personal loan — a fixed EMI over a chosen tenure, at a materially lower rate (often 10-25% p.a. vs. 30%+ effective on cash withdrawals).
Does using this loan reduce my credit card's spending limit?
Yes — the loan amount is blocked against your available credit limit until you repay it, so your card's usable limit for regular spending shrinks by the loan amount for the duration of the loan.
Is a loan on credit card cheaper than a regular personal loan?
It depends on your card issuer's offer versus a personal loan quote — some banks price this competitively (starting around 10-11% for pre-qualified customers) precisely because it's pre-approved and low-risk for them, but always compare the actual rate offered against a standard personal loan before assuming it's cheaper.