Personal Loan vs Credit Card Loan – LoanSathi.in Comparison
Personal Loan vs Credit Card Loan – LoanSathi.in Comparison
Borrowers often get confused between a Personal Loan and a Credit Card Loan. Both provide quick money, both require basic documents, and both are popular among salaried as well as business users. But the usage, interest, repayment method, and approval rules are completely different.
This comparison by Loansathi.in explains everything in a simple and easy style, so customers clearly understand which loan is best for their situation.
Every time you see the term Personal Loan or Credit Card Loan, it is clickable and takes you directly to the official form page.
What is a Personal Loan?
A Personal Loan is a fixed-term loan where the bank/NBFC transfers a lump-sum amount to your bank account. You repay it every month through EMIs. It is suitable for larger needs like medical expenses, education, home repair, travel, and emergency funding.
What is a Credit Card Loan?
A Credit Card Loan is a loan offered on your existing credit card limit. The bank allows you to convert a part of your card limit into a payable loan with fixed EMIs. It is mainly useful for short-term purchases, emergency spending, or converting large payments into EMIs.
• Typical Personal Loan interest rate: 12% – 24% annually
• Typical Credit Card Loan interest rate: 18% – 42% annually
Personal Loans usually have lower interest rates compared to Credit Card Loans.
Difference Between Personal Loan and Credit Card Loan
1. Loan Amount
A Personal Loan allows higher loan amounts because it is based on income and credit score. People generally take ₹50,000 to ₹25 lakh.
A Credit Card Loan is limited by your credit card’s available limit. If your limit is ₹1 lakh, you cannot take more than that.
2. Approval Time
With Personal Loan, approval takes 4 to 24 hours because bank checks documents and income.
A Credit Card Loan is usually instant because your bank already knows your repayment history.
3. Repayment
A Personal Loan is repaid through monthly EMIs for 1–5 years.
A Credit Card Loan is repaid through credit card bill payments and EMIs added into your statement.
4. Eligibility
To get a Personal Loan, you need income proof, bank statement, and a stable profile.
A Credit Card Loan requires only a credit card with good repayment history.
5. Which One Is Safer?
A Personal Loan is safer for large loans because interest is lower and repayment terms are longer.
A Credit Card Loan is better for short-term or emergency needs.
Choose a Personal Loan for bigger expenses and better interest rates.
Choose a Credit Card Loan only for short-term or small loan needs.
How Loansathi.in Helps You?
Loansathi.in is one of India's largest multi-bank loan assistance platforms. It works with more than 150+ Banks & NBFCs across India. Customers submit their documents once, and Loansathi handles profile matching, loan processing, and application submission.
Loansathi helps in:
- Assisting customers in choosing between a Personal Loan and a Credit Card Loan
- Preparing documents for faster approval
- Matching the correct lender based on profile
- Submitting applications to multiple banks when required
- Helping customers understand interest rates and repayment methods
Which One Should You Choose?
Choose a Personal Loan if you need:
- Lower interest
- Higher loan amount
- Longer repayment period
- Financial stability
Choose a Credit Card Loan if you need:
- Small emergency loan
- Instant approval
- No extra documentation
- Short-term repayment
Final Conclusion
Both Personal Loan and Credit Card Loan are helpful, but choosing the right one depends on your requirement. For long-term and cost-effective borrowing, a Personal Loan is better. For instant small needs, a Credit Card Loan works better.
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