Introduction
In 2025, credit cards in India are not just for spending but also serve as convenient tools for availing instant loans. With rising financial needs and the increasing cost of living, many individuals rely on credit card loans for emergencies, big purchases, or debt consolidation. However, choosing the right credit card for a loan depends on factors like interest rates, processing fees, repayment flexibility, and credit limits.
This article explores the best credit cards for loans in India in 2025, comparing their features, benefits, and eligibility criteria to help you make an informed decision.
How Do Credit Card Loans Work?
Credit card loans, also known as credit card EMI loans or cash advances, allow cardholders to borrow money against their credit limit. These loans can be availed in two ways:
- Credit Card Cash Advance – Withdraw cash from an ATM (high interest and fees apply).
- Credit Card EMI Conversion – Convert big purchases into EMIs at lower interest rates.
Banks offer pre-approved loan offers on credit cards, allowing users to borrow funds instantly without additional documentation.
Key Factors to Consider Before Choosing a Credit Card for a Loan
Before selecting a credit card for a loan, consider the following:
✅ Interest Rate (APR) – Lower rates mean cheaper loans.
✅ Processing Fees – Some banks charge 1-3% of the loan amount.
✅ Loan Tenure – Flexible repayment options (3-60 months).
✅ Pre-approved Offers – Instant loan disbursal without application.
✅ Credit Limit – Higher limits allow bigger loans.
✅ Foreclosure Charges – Penalty for early repayment.
✅ Rewards & Benefits – Cashback, discounts, or reward points.
Best Credit Cards for Loans in India (2025)
Here are the top credit cards for loans in 2025, based on interest rates, loan features, and customer benefits:
1. HDFC Bank Millennia Credit Card
- Interest Rate: 0.99% – 1.5% per month (lowest in the market)
- Loan Amount: Up to 90% of credit limit
- Processing Fee: 1-2% of loan amount (waived occasionally)
- Repayment Tenure: 3 to 48 months
- Key Benefit: No prepayment penalty after 6 EMIs
Why Choose It?
HDFC offers pre-approved instant loans with flexible EMI options. Cardholders also enjoy 5% cashback on Amazon, Flipkart, and other major platforms.
2. SBI SimplyCLICK Credit Card
- Interest Rate: 1.25% – 1.75% per month
- Loan Amount: Up to 85% of credit limit
- Processing Fee: 1.5% (sometimes waived)
- Repayment Tenure: 6 to 60 months
- Key Benefit: Discounts on e-commerce platforms
Why Choose It?
SBI offers low-interest EMI conversions and easy loan approvals for existing cardholders.
3. ICICI Bank Amazon Pay Credit Card
- Interest Rate: 1.25% – 1.99% per month
- Loan Amount: Up to 95% of credit limit
- Processing Fee: 1-2%
- Repayment Tenure: 3 to 60 months
- Key Benefit: 5% cashback on Amazon
Why Choose It?
ICICI provides instant loan disbursal and attractive cashback offers, making it ideal for frequent Amazon shoppers.
4. Axis Bank Flipkart Credit Card
- Interest Rate: 1.4% – 2% per month
- Loan Amount: Up to 80% of credit limit
- Processing Fee: 2% (sometimes waived)
- Repayment Tenure: 3 to 48 months
- Key Benefit: 5% discount on Flipkart
Why Choose It?
Axis Bank offers easy EMI conversions and exclusive Flipkart discounts.
5. Citibank PremierMiles Credit Card
- Interest Rate: 1.35% – 1.8% per month
- Loan Amount: Up to 75% of credit limit
- Processing Fee: 2.5%
- Repayment Tenure: 6 to 60 months
- Key Benefit: Air miles on loan transactions
Why Choose It?
Citibank provides travel benefits along with loan facilities, making it great for frequent flyers.
6. Kotak League Platinum Credit Card
- Interest Rate: 1.3% – 1.9% per month
- Loan Amount: Up to 85% of credit limit
- Processing Fee: 1.5%
- Repayment Tenure: 3 to 60 months
- Key Benefit: Discounts on movie tickets
Why Choose It?
Kotak offers low-cost EMI options and entertainment benefits.
7. IDFC First Wealth Credit Card
- Interest Rate: 1.2% – 1.6% per month
- Loan Amount: Up to 90% of credit limit
- Processing Fee: 1% (lowest)
- Repayment Tenure: 3 to 48 months
- Key Benefit: Airport lounge access
Why Choose It?
IDFC First provides low processing fees and premium travel perks.
Comparison Table: Best Credit Cards for Loans (2025)
| Credit Card | Interest Rate (Monthly) | Max Loan (% of Limit) | Processing Fee | Repayment Tenure | Key Benefit |
|---|---|---|---|---|---|
| HDFC Millennia | 0.99% – 1.5% | 90% | 1-2% | 3-48 months | No prepayment penalty |
| SBI SimplyCLICK | 1.25% – 1.75% | 85% | 1.5% | 6-60 months | E-commerce discounts |
| ICICI Amazon Pay | 1.25% – 1.99% | 95% | 1-2% | 3-60 months | 5% Amazon cashback |
| Axis Flipkart | 1.4% – 2% | 80% | 2% | 3-48 months | Flipkart discounts |
| Citi PremierMiles | 1.35% – 1.8% | 75% | 2.5% | 6-60 months | Air miles |
| Kotak League | 1.3% – 1.9% | 85% | 1.5% | 3-60 months | Movie discounts |
| IDFC First Wealth | 1.2% – 1.6% | 90% | 1% | 3-48 months | Lounge access |
How to Avail a Loan on Your Credit Card?
- Check Pre-approved Offers – Log in to your bank’s app or net banking.
- Select Loan Amount & Tenure – Choose EMI period (3-60 months).
- Pay Processing Fee (if applicable) – Some banks waive it during promotions.
- Receive Funds Instantly – Amount is credited to your account.
Pros & Cons of Credit Card Loans
✅ Pros:
- Instant Disbursal – No lengthy approval process.
- No Collateral Needed – Unsecured loan.
- Flexible EMI Options – Choose tenure as per convenience.
❌ Cons:
- High-Interest Rates (compared to personal loans).
- Processing Fees (1-3% of loan amount).
- Reduces Available Credit Limit.
Tips to Get the Best Credit Card Loan Deal
🔹 Negotiate Interest Rates – Call customer care for better offers.
🔹 Check for Fee Waivers – Banks often waive fees during festivals.
🔹 Compare Multiple Cards – Choose the lowest APR.
🔹 Avoid Cash Withdrawals – High fees & interest apply.
Conclusion
In 2025, HDFC Millennia, SBI SimplyCLICK, and ICICI Amazon Pay are among the best credit cards for loans in India due to their low-interest rates, high loan limits, and additional rewards. Before opting for a credit card loan, compare interest rates, fees, and repayment flexibility to avoid unnecessary costs.
If used wisely, credit card loans can be a quick financial solution during emergencies. Always repay on time to maintain a good credit score and avoid debt traps.
FAQs
Q1. Which bank offers the lowest interest rate on credit card loans?
A: HDFC Bank (0.99% per month) offers the lowest rates.
Q2. Can I foreclose a credit card loan early?
A: Yes, but some banks charge a foreclosure fee (2-5%).
Q3. Does a credit card loan affect my credit score?
A: Yes, if you miss EMIs, it negatively impacts your score.
Q4. What is the maximum loan tenure on credit cards?
A: Up to 60 months (5 years) in some banks.
Q5. Can I get a credit card loan without a credit card?
A: No, you need an active credit card with sufficient limit.
By choosing the right credit card for loans in 2025, you can manage financial needs efficiently while enjoying rewards and low-cost borrowing options. Always read the terms and borrow responsibly!