Can a Credit Card Be Issued to the Loan Accounts ?

Can a Credit Card be issued to other loan accounts such as overdraft facility, cash credit facility, working capital loan?

Yes, paragraphs 7(b) and 7(c) of the MD have enabled issuance of various types of credit cards which can be customized to access the limits available in different loan accounts, duly aligned to the terms and conditions stipulated for the concerned loan account. 

Also Read – Can a Bank Charges interest on the Credit Card unpaid taxes ?

For example, a customer availing an overdraft facility from a bank can be issued a type of credit card to access the funds available under the facility. The terms of usage of this credit card (interest charged, repayment schedule, penalty, cash withdrawal limit etc.,) shall correspond to the terms and conditions applicable to the overdraft facility.