Which Is Better, Personal Loans or A Credit Card Loan?



Credit card loan and personal loan, both are ways to acquire fund for purchase or meet emergencies instantly. An instant personal loan is an amount credited by the loan provider for a flexible period which is paid back in the form of EMI. A credit card loan is taken against a chip enabled card of a recognized bank where you can make a purchase defined under your credit limit.

 

A credit card loan comes with a credit limit and you cannot purchase beyond the limit.

Which is better? That is completely your call, but you must take a look at the features and benefits each of them provides. Taking a decision after knowing the features will be easy for you.

 

Features of personal loan

 

End-use: A Personal loan is flexible to use for anything starting from education to daily chores or any emergency. The fund is not restricted for just a single-use like the home loan or a business loan.


Eligibility: A personal loan requires an eligibility check to get approved. The loan providers check your credit score and financial history to ensure stability and risk associated with it.


Loan amount: A personal loan can be enough to meet the requirements of a wedding, festival, medical emergency, or a trip. It starts from a few thousand and can be extended up to lakhs.


Tenure: The loan amount can be paid back within a tenure of 12 months to 48 months. You can choose the tenure during personal loan apply depending upon repayment flexibility.

 

Features of credit card loan

 

End-use: Without any restriction, you can use the credit card amount. It is flexible to use for any purpose.


Eligibility: Credit cards are only provided to a few percentages of people. If you are in some emergency need it can be daunting as only a few get the chance to get a loan against a credit card.


Loan amount: The loan amount completely depends upon the credit limit available on your credit card. Suppose you need INR 50,000 and the credit limit available is INR 30,000 it becomes impossible for you to meet the emergency.


Interest rate: The interest rate of the credit card completely depends upon the registered bank. Every bank has its rate of interest.

 

Wrapping up

So, which option did you find better? It is completely your call and the requirement type. If you need a large amount an online personal loan is the best fit while for a small purchase a credit card loan fits well.

 

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