In today’s fast-paced world, quick access to funds during financial emergencies is crucial. Insta-credit loans or instant loans against credit cards have emerged as a convenient borrowing option to meet urgent needs. These pre-approved loans get disbursed almost instantly into your bank account without extensive documentation.
Insta loans are unsecured, short-term loans that leverage your existing credit card limit. You can borrow up to 100% of your credit limit in just a few clicks either through your bank’s website or mobile app. The loan amount gets credited within a few hours and you only pay interest on the borrowed amount.
Here are some key benefits of availing of an insta credit loan:
- Quick disbursal– Loan amount credited within 2-3 hours without paperwork
- Collateral-free– No need to pledge any asset or security
- Minimal documentation– Only KYC documents are required in most cases
- Flexible tenures– Tenures from 3 months to 2 years
- Handy in emergencies– Useful to fund unforeseen expenses
However, while they offer convenience, insta loans can be expensive if not managed properly. High interest rates in the range of 13-26% p.a. and foreclosure charges apply in case of prepayments.
This article discusses the top 10 insta credit loans you can avail of from leading banks in India this year. We have compiled this list based on interest rates, processing fees, loan amount, tenure, eligibility criteria, and other terms and conditions. Read on to pick the best insta loan suited to your financial needs.
Here is the list of Best Insta Credit Loans in India
- HDFC Bank Insta Loan
HDFC Bank, one of the largest private sector banks, offers credit card holders insta loans up to 100% of the credit limit. Customers can avail of loans 24×7 through NetBanking or the HDFC Bank MobileBanking app.
Key Features:
- Loan amount– Up to 100% of credit limit (minimum Rs. 5,000)
- Interest rate– 16% to 20% p.a.
- Tenure– 6 to 60 months
- Processing fee– 2% of the loan amount plus taxes
- Foreclosure charges– 3% of the outstanding amount for loans beyond 12 months
HDFC Bank Insta Loan is one of the easiest and quickest to avail making it a preferred choice for many borrowers. However, it comes with higher interest rates compared to some other options.
- ICICI Bank Insta Personal Loan
The Instant Personal Loan from ICICI Bank offers credit cardholders the flexibility to borrow from Rs. 5,000 up to 100% of their credit limit. The end-to-end process is paperless and the amount gets credited instantly into your account.
Key highlights:
- Loan amount– Up to 100% of credit card limit
- Interest rate– 14% to 16% p.a.
- Tenure– 6 to 60 months
- Processing fee– 2% of the loan amount plus taxes
- Foreclosure– Allowed after 6 months. 4% charge plus GST
ICICI offers competitive interest rates and charges compared to other lenders. The flexibility, convenience, and minimal documentation make it worth considering.
- Axis Bank Ready2Pay
Axis Bank’s Ready2Pay Personal Loan helps customers withdraw cash up to their credit limit in one go. Registered credit card holders can avail of this loan through Netbanking, Mobile App, or Axis Bank branches.
Salient features:
- Loan amount– Up to 100% of the total credit limit
- Interest rate– 18% p.a. onwards
- Tenure– 12 to 60 months
- Processing fee– 2.49% of loan amount
- Part-payment– Allowed after 3 EMIs. 3% foreclosure charge.
While Ready2Pay comes with higher interest rates, the flexible repayment tenures ranging up to 5 years make large expenses more affordable.
- Kotak Mahindra Bank Insta Loan
Kotak Mahindra Bank enables cardholders to avail of a credit loan in just a few clicks through NetBanking or the mobile app. The process is completely paperless with no physical documentation involved.
Key particulars
- Loan amount– Up to 100% of credit card limit
- Interest rate– 18% p.a. onwards
- Tenure– 6 to 48 months
- Processing fee– 2% of the loan amount
- Prepayment– Permitted after 6 months. 4% foreclosure charge.
Kotak Insta Loan offers the convenience of quick disbursal. While interest rates are on the higher side, longer repayment tenures of up to 4 years help manage repayments effectively.
- Bajaj Finserv Insta Loan
Bajaj Finserv offers a 1-minute approval process for existing credit card holders to get a loan up to Rs. 4 lakh. The Insta Loan can also be availed through their pre-approved offer sent to select customers.
Key factors:
- Loan amount– Up to Rs. 4 lakhs
- Interest rate– 11.99% p.a. onwards
- Tenure– 12 to 60 months
- Processing fee– Up to 2.49% of the loan amount
- Foreclosure– Allowed after 6 EMIs. 5% of the outstanding amount as charges.
Bajaj Finserv Insta Loan stands out for its competitive interest rates starting at just 11.99%. The completely digital and paperless process makes it quick and convenient.
- Tata Capital Loan Against Credit Card
Tata Capital offers existing credit card holders the facility to avail of a loan up to 100% of their credit limit in just a few clicks.
Highlights:
- Loan amount– Up to 100% of credit card limit
- Interest rate– 16% to 26% p.a.
- Tenure– 12 to 36 months
- Processing fee– 2% of the loan amount plus taxes
- Part-payment– Permitted after 6 months. 4% foreclosure charge.
Tata Capital provides flexible tenures of up to 3 years for managing repayments. While it does carry higher interest rates, minimal documentation, and quick disbursal are advantages.
- IndusInd Bank Insta Loan
IndusInd credit card customers can avail of a loan against their card up to 100% of their credit limit round-the-clock. The Insta Loan can be accessed digitally through their website or mobile app within a few minutes.
Particulars:
- Loan amount– Up to 100% credit limit (Rs.1 lakh minimum)
- Interest rate– 18% p.a. onwards
- Tenure– 6 to 48 months
- Processing fee– 2% of the loan amount plus taxes
- Prepayment– Permitted after 6 EMIs. 4% foreclosure charge.
IndusInd makes availing loans against credit cards hassle-free through an end-to-end digital process. Longer repayment tenures also help manage the outflow effectively.
- Standard Chartered Bank InstaCredit
Standard Chartered offers existing credit card holders the option to withdraw from Rs. 1,000 up to 100% of their credit limit as an insta loan. It offers attractive features like instant approval and disbursal.
Notable features:
- Loan amount– Up to 100% of credit limit (minimum Rs. 1,000)
- Interest rate– 14% onwards
- Tenure– 6 to 60 months
- Processing fee– 1.5% of the loan amount
- Prepayment– Permitted after 6 EMIs. 2% foreclosure charge.
Standard Chartered InstaCredit comes with moderate processing fees. It offers an easy application process as well as sizeable loan amounts meeting various needs.
- HSBC Bank Credit Card Loan
HSBC Bank provides credit card holders the facility to avail loans from Rs. 10,000 up to their total credit limit in a paperless manner.
Key factors:
- Loan amount– Rs. 10,000 to full credit limit
- Interest rate– 14% p.a. onwards
- Tenure– 12 to 60 months
- Processing fee– 2% of the loan amount
- Part-payment– Allowed after 12 months. 4% foreclosure fee.
HSBC offers competitive interest rates starting from 14% and moderate processing charges on its credit card loans. The application process is quick and convenient.
- Yes Bank Credit Card Loan
Yes Bank enables customers to instantly avail of loans against their credit cards. Cardholders can avail up to 100% of their credit limit round-the-clock through NetBanking or mobile app.
Particulars
- Loan amount– Up to 100% of credit limit
- Interest rate– 18% p.a. onwards
- Tenure– 6 to 60 months
- Processing fee– 2% of the loan amount
- Foreclosure– Permitted after 6 EMIs. 4% charge plus taxes.
Yes Bank offers the dual benefit of an instant, paperless application process along with longer repayment periods. This makes large expenses more manageable.
Eligibility Criteria for Insta Credit Loans
Here are the basic eligibility criteria mandated by most banks and lenders for availing of an insta credit loan:
- Age– Minimum 21 years to maximum 65 years at loan maturity
- Income– Most lenders require a minimum monthly income between Rs. 15,000 to Rs. 25,000
- Employment-Salaried individuals or self-employed professionals
- Credit score– A credit score above 750 is ideal to get approved at better terms
- Location– Resident Indians located in metro and urban cities
- Credit card– Active credit card with good repayment track for 6 months
- Outstanding on credit card– Total outstanding must not exceed the credit limit
Meeting the eligibility criteria of lenders ensures quick processing and approval of your insta loan application.
Interest Rates and Charges
When availing of an insta credit loan, here are some of the primary costs involved:
Interest Rates
- Interest rates on insta loans range from 13% to 26% per annum.
- Lenders consider your income, credit score, credit limit, outstanding card dues, and relationship history to determine applicable interest.
- Default interest rates are typically 3-4% p.a. higher charged on unpaid EMIs.
Fees
- Processing fee of 1-2.5% of the loan amount plus applicable taxes
- Prepayment or foreclosure between 2-5% of the outstanding loan amount
- Penal interest on any payment delays or defaults
- Stamp duty and other statutory charges may apply
Compare interest rates, charges, and the Annual Percentage Rate (APR) across lenders to get the best deal. Opt for longer tenures to bring down your EMIs and total repayment burden.
How to Apply for an Insta Credit Loan
The application process for availing of an instant loan against a credit card is completely digital and paperless. Follow these steps:
Step 1: Check your eligibility and loan details on your bank’s website or mobile banking app.
Step 2: Select your preferred loan amount and repayment tenure. The platform will indicate your eligibility amount and EMI.
Step 3: Provide your basic KYC details like name, date of birth, PAN, mobile number, etc. to initiate the application.
Step 4: Enter the OTP received on mobile and email to complete the process.
Step 5: The loan is approved instantly based on pre-approved terms. You will get an approval notification via SMS and email.
Step 6: The approved loan amount gets disbursed into your linked savings account within 2-3 hours.
Thus, the entire process from application to disbursal is quick, convenient, and does not require physical documentation.
Repayment of Insta Credit Loans
Here are key aspects related to the repayment of insta credit loans:
- EMIs– Equated monthly installments are due on a specific date each month, usually between the 1st to 10th.
- Minimum payment– You need to pay at least the minimum due amount by the payment due date to avoid late payment fees.
- Loan closure– You can prepay and close the loan after paying the applicable foreclosure charges, if any.
- Tenure– Typical repayment tenures range from 6 months to 5 years. Longer tenures have lower EMIs.
- Prepayment– Most lenders allow prepayments after 6 EMIs. Foreclosure charges of 2-5% apply.
- Auto-debits– Your insta loan EMIs get auto-debited monthly from your linked bank account.
Make timely repayments as per the schedule to maintain a good credit score and eligibility for future loans.
Pros and Cons of Insta Credit Loans
Here are the key advantages and limitations of availing instant loans against credit cards:
Pros
- Quick disbursal within 2-3 hours into your bank account
- Completely digital and paperless process
- No need to provide income proof or collateral
- Flexible repayment period of 6 months to 5 years
- Useful for medical emergencies, home repairs, etc.
- Consolidate multiple debts at a lower interest rate
Cons
- Higher interest rates of 13-26% p.a.
- Lower eligibility amount vs. personal or secured loans
- Foreclosure charges apply on prepayment before tenure
- Credit limit gets blocked till repayment of loan
- Missed EMIs impact credit score and eligibility
Insta loans provide easy access to funds for immediate needs, but discipline in repayment is advised. Consider your repayment capacity before borrowing high amounts.
FAQs
Q1. What is the maximum amount one can get on an insta credit loan?
Most banks allow a loan up to 100% of your total credit card limit, subject to eligibility. The minimum amount is usually Rs. 5,000.
Q2. How soon can I get the money after applying for an insta credit loan?
Once approved, the loan amount gets disbursed into your account within 2-3 hours in most cases. The entire process is automated enabling near-instant credit.
Q3. Which bank offers the lowest interest rate on insta credit loans?
Bajaj Finserv currently offers the lowest rate of 11.99% p.a. on its Insta Loan facility. Banks like ICICI, and HSBC also have competitive rates beginning around 14% p.a.
Q4. What is the maximum tenure I can get to repay my insta credit loan?
Most banks offer flexible tenures ranging from 6 months to 5 years i.e. 60 months. Longer durations are useful to manage cash flows through lower EMIs.
Q5. Can I foreclose my insta loan anytime with my bank?
While foreclosure is permitted, most lenders levy charges if you close before 6 EMIs. The foreclosure fee is 2-5% of the outstanding loan amount plus taxes.
Conclusion
Insta-credit loans have gained immense popularity as a quick, convenient way to meet urgent funding needs. Leading banks now offer this facility to existing credit card holders with just minimal documentation. When used judiciously, these loans can be financial lifesavers.
Compare interest rates, charges, loan amount, repayment tenure, and other parameters carefully before applying. This will help identify the most suitable loan as per your requirements. Responsible borrowing and diligent repayment should be your top priorities to avoid spiraling into debt traps. Use insta loans as short-term, stop-gap arrangements rather than substitutes for regular credit.
With prudent use, insta loans can supplement your finances in times of sudden contingencies. Choose from the top options discussed here for the best deal in 2023.
He is the founder and owner of Ventures Money, a leading finance and investment website. With over 10 years of experience in the finance industry, Mustafa is passionate about helping everyday investors make smart decisions with their money.
After getting a lot of experience, Mustafa worked at several top investment banks before deciding to launch this site. His goal was to create an approachable, jargon-free resource for investing advice and market analysis.
Under Mustafa’s leadership, Ventures Money has become one of the most trusted sites for investment strategies, stock research, and personal finance tips. Every day, Mustafa and his team of finance experts work hard to break down complex financial topics into clear, actionable guidance.
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