When you suddenly need a significant amount of funds, a card loan offered by a bank or consumer finance company is one option. And if you already have a card loan contract, you may be able to easily borrow cash from a convenience store ATM using your dedicated card.
This article provides a detailed explanation, from the basic knowledge of card loan borrowing at convenience store ATMs, to the differences from credit card cash advances, points to check before borrowing, procedures and compatible card loan companies for major convenience store ATMs, fees and interest rates, and precautions for use.
- Basics of Card Loan Borrowing at Convenience Store ATMs
- [By Convenience Store] Card Loan Borrowing Procedures and Compatible Card Loan Companies
- Card Loan Borrowing at Seven Bank ATMs: Procedure and Compatible Cards
- Card Loan Borrowing at Lawson Bank ATMs: Procedure and Compatible Cards
- Card Loan Borrowing at FamilyMart (E-net/Japan Post Bank ATMs): Procedure and Compatible Cards
- Card Loan Borrowing at Ministop (Aeon Bank ATMs): Procedure and Compatible Cards
- About Fees and Interest Rates for Card Loan Borrowing
- Usage Limits and Precautions for Card Loans at Convenience Store ATMs
Basics of Card Loan Borrowing at Convenience Store ATMs
A card loan is a financial product that allows you to repeatedly borrow and repay within a pre-contracted credit limit. There are dedicated loan cards, and some banks may have a loan function attached to their cash cards.
What is a Card Loan? Differences from Cash Advance
Card loans and credit card cash advances are similar in that both allow you to borrow cash from an ATM, but there are several differences.
| Item | Card Loan | Credit Card Cash Advance |
|---|---|---|
| Provider | Banks, consumer finance companies, credit companies, etc. | Credit card companies |
| Dedicated Card | Dedicated loan card or integrated cash card is common | Function attached to a credit card |
| Credit Limit | Set individually based on screening (generally higher than cash advance) | Within the credit card’s cash advance limit |
| Interest Rate (Annual) | Varies based on screening (can generally be lower than cash advance) | Fixed by card company/type (often around 15.0% – 18.0% per annum) |
| Main Use | Relatively large sums, flexible use | Small amounts, short-term bridging funds, etc. |
| Screening | Screening upon new contract | Screening for cash advance limit when credit card is issued (if set) |
Generally, card loans tend to have higher credit limits and slightly lower interest rates, but the screening process is more thorough than for setting a credit card cash advance limit.
Points to Check Before Borrowing (Interest Rate, Repayment Plan)
Before borrowing using a card loan at a convenience store ATM, be sure to check the following points:
- Reconfirm Contract Details: Reconfirm the contract details with the financial institution that issued your loan card (credit limit, applicable interest rate, repayment method, repayment date, etc.).
- Applicable Interest Rate (Annual Percentage Rate – APR): The interest rate for a card loan is set individually based on the screening result at the time of contract and the credit limit. Some products have interest rates that vary in tiers according to the outstanding loan balance.
- Repayment Plan: It is crucial to simulate your monthly repayment amount and repayment period and create a manageable repayment plan before borrowing. If repayments are delayed, late fees will be incurred, and your credit information will be affected.
- ATM Usage Fee: An ATM usage fee may be charged when borrowing from a convenience store ATM. Check if a fee applies and how much it is.
- Loan Card PIN: Your loan card’s PIN is required for borrowing. If you have forgotten it, complete the inquiry procedure with your financial institution in advance.
[By Convenience Store] Card Loan Borrowing Procedures and Compatible Card Loan Companies
This section explains the general procedure for card loan borrowing and the main card loan companies (bank-affiliated card loans, consumer finance-affiliated card loans, etc.) generally partnered with major convenience store ATMs.
Card Loan Borrowing at Seven Bank ATMs: Procedure and Compatible Cards
- Procedure Overview:
- Select “Withdrawal (お引出し)” or “Card Loan (カードローン)” or similar menu on the ATM screen.
- Insert your loan card.
- Enter your PIN.
- Select “Borrowing (お借入れ)” and enter the desired amount.
- Confirm the details and receive your cash and transaction slip.
- Main Compatible Card Loan Companies: Major consumer finance companies like Acom, Promise, SMBC Mobit; many bank-affiliated card loans (including Seven Bank Card Loan); some credit company-affiliated card loans, etc.
Source: Using ATMs | Seven Bank
Card Loan Borrowing at Lawson Bank ATMs: Procedure and Compatible Cards
- Procedure Overview:
- Select “Withdrawal (お引出し)” or the relevant card loan menu on the ATM screen.
- Insert your loan card and enter your PIN.
- Select “Borrowing (お借入れ)” and enter the borrowing amount.
- Confirm the details and receive your cash and transaction slip.
- Main Compatible Card Loan Companies: Major consumer finance companies like Acom, Promise, Aiful; partnered bank-affiliated card loans (including Lawson Bank Card Loan), etc.
Source: Using ATMs | Lawson Bank
Card Loan Borrowing at FamilyMart (E-net/Japan Post Bank ATMs): Procedure and Compatible Cards
FamilyMart primarily has E-net ATMs and Japan Post Bank ATMs installed.
E-net ATM
- Procedure Overview:
- Select “Withdrawal (お引出し)” or a “Card Loan (カードローン)” related menu on the ATM screen.
- Insert your loan card and enter your PIN.
- Enter the borrowing amount and confirm.
- Receive your cash and transaction slip.
- Main Compatible Card Loan Companies: Major consumer finance companies like Promise, Aiful, Lake; many partnered bank-affiliated card loans; credit company-affiliated card loans, etc.
Source: E-net Co., Ltd.
Japan Post Bank ATM (FamilyMart installed type)
- Procedure Overview:
- Select “Withdrawal (お引出し)” or a “Loan (ローン)” related menu on the ATM screen.
- Insert your loan card (or cash card with loan function) and enter your PIN.
- Enter the borrowing amount and confirm.
- Receive your cash and transaction slip.
- Main Compatible Card Loan Companies: Card loans from some partnered financial institutions. Handling of partnered consumer finance companies at Japan Post Bank ATMs is limited.
Source: Branches/ATMs – Japan Post Bank
Card Loan Borrowing at Ministop (Aeon Bank ATMs): Procedure and Compatible Cards
- Procedure Overview:
- Select “Withdrawal (お引出し)” or “Card Loan (カードローン)” menu on the ATM screen.
- Insert your loan card and enter your PIN.
- Select “Borrowing (お借入れ)” and enter the borrowing amount.
- Confirm the details and receive your cash and transaction slip.
- Main Compatible Card Loan Companies: Aeon Bank Card Loan, other partnered bank-affiliated card loans, some consumer finance-affiliated card loans, etc.
Source: ATM Services | Aeon Bank
About Fees and Interest Rates for Card Loan Borrowing
When borrowing from a convenience store ATM using a card loan, fees and interest will be incurred.
- ATM Usage Fee: Depending on the borrowed amount, an ATM usage fee (typically 110 yen for 10,000 yen or less, and 220 yen for over 10,000 yen) may be charged separately. How this fee is handled (added to the principal at the time of borrowing, billed separately, etc.) varies by financial institution. Some card loans offer free use of partnered ATMs.
- Interest Rate (Annual Percentage Rate – APR): The interest rate for a card loan varies depending on the contract details and outstanding loan balance. Generally, consumer finance-affiliated card loans are around 3.0% to 18.0% per annum, and bank-affiliated card loans are around 1.5% to 14.5% per annum, but this depends on individual contracts. Interest is calculated daily.
- Interest Calculation Method (Estimate): Borrowed Balance × APR ÷ 365 days × Number of Days Used
- Repayment Method: Repayment is typically made by automatic withdrawal from your account on a designated day each month, but voluntary repayments (including early repayments) via ATM are often possible.
Usage Limits and Precautions for Card Loans at Convenience Store ATMs
When using a card loan at a convenience store ATM, pay attention to the following points:
- Use Within Your Credit Limit: Borrowing must be done within the credit limit stipulated in your contract. You cannot borrow beyond your limit.
- Per-Transaction ATM Operating Limit: Separate from the loan’s own credit limit, the ATM model may have an upper limit on the amount that can be withdrawn in a single transaction (e.g., up to 500,000 yen).
- PIN Management and Security: Manage your loan card’s PIN strictly and be mindful of your surroundings when entering it. Be very careful about loss or theft.
- Importance of a Repayment Plan: While card loans are easy to borrow, unplanned use carries the risk of leading to multiple debts. Always create a repayment plan, consider your income and expenditure balance, and only borrow the necessary amount.
- Check and Keep Transaction Slips: After use, always receive the transaction slip, check the borrowed amount, fees, and outstanding balance, and keep it in a safe place.
- Balance of Borrowing and Repayment: If you borrow repeatedly, always keep track of your current total borrowed amount and repayment status, and be careful not to make repayment difficult.
- Consult if in Trouble: If repayment becomes difficult, do not ignore it; consult your lending financial institution promptly. They may be able to help you review your repayment plan or guide you to consultation services.
Borrowing with a card loan at a convenience store ATM is a convenient way to meet sudden financial needs, but it is essential to remember that it is a debt. Understand the interest rates, fees, and repayment plan thoroughly, and use it carefully and systematically.