When you're in urgent need of cash, you might ask: Should I take a personal loan or opt for a credit card loan? While both offer quick access to funds, choosing the right one can save you thousands in interest and help you avoid debt traps.
Let’s break it down with Vizzve's simplified guide.
🏦 What is a Personal Loan?
A personal loan is an unsecured loan provided by banks, NBFCs, or digital lenders like Vizzve, meant for personal use – weddings, education, medical expenses, or even vacations.
💸 Loan Amount: ₹50,000 – ₹25 Lakhs (depending on profile)
📅 Repayment Tenure: 12 – 60 months
📉 Interest Rate: 10.5% – 24% p.a.
📋 EMI-based repayment
💳 What is a Credit Card Loan?
A credit card loan is a pre-approved loan offered against your available credit limit or over it. It is instantly processed and added to your card account.
⚡ Instant Disbursal
💼 Tied to your card’s limit
🔄 Shorter repayment tenures (3–24 months usually)
📈 Interest Rate: 13% – 36% p.a.
🔍 Side-by-Side Comparison
| Feature | Personal Loan | Credit Card Loan |
|---|---|---|
| Approval Time | 1–2 days (Fast with Vizzve) | Instant (if pre-approved) |
| Loan Amount | Higher limits | Limited by credit card limit |
| Interest Rate | Lower (10.5%–24%) | Higher (13%–36%) |
| Repayment Flexibility | 1–5 years | 3–24 months |
| Documentation | Basic KYC + income proof | Usually none |
| Prepayment Charges | May apply | May apply |
| Best For | Large expenses (wedding, home) | Small urgent needs (medical, travel) |
🎯 When to Choose a Personal Loan?
✔️ You need a larger amount
✔️ You want longer tenure to manage EMIs
✔️ You want lower interest and stable monthly payments
✔️ You’re planning debt consolidation
💡 Use Vizzve’s EMI Calculator to plan your repayment smartly.
⚡ When to Choose a Credit Card Loan?
✔️ You need quick funds instantly
✔️ You already have a good credit card limit
✔️ You need money for short-term use only
✔️ You can repay within 6–12 months
💡 Look out for special card offers with zero processing fee.
⚠️ Watch Out for These!
🧨 Credit Card Loan Risks:
Can quickly snowball into high-interest debt if unpaid
Might reduce your credit card limit drastically
🧮 Personal Loan Risks:
Higher processing time (unless using Vizzve)
Rejection if credit score or income is low
✅ Vizzve Recommends
"If you're looking for a long-term, affordable borrowing option – go with a personal loan.
If you need quick cash for short-term use and can repay fast, a credit card loan might work."
With Vizzve Loans, you get:
Instant eligibility check
100% paperless approval
Transparent EMIs
Personalized interest rates
📌 Final Word: What’s Better for You?
| If you need | Go for |
|---|---|
| ₹1–5 Lakhs for 1–5 years | ✅ Personal Loan (via Vizzve) |
| ₹10K–₹1 Lakh for 1–6 months | ✅ Credit Card Loan |
Choose what fits your income, repayment ability, and urgency. And remember – debt isn’t bad if you manage it right.
🔖 FAQs – Personal Loan vs. Credit Card Loan
Q: Which has lower interest rates?
Personal loans usually have lower interest rates than credit card loans.
Q: Can I prepay either loan?
Yes, but check the prepayment or foreclosure charges.
Q: Which is better for emergencies?
Credit card loans are instant but expensive. For planned needs, personal loans are better.
Q: How fast can I get a personal loan from Vizzve?
With Vizzve, disbursal happens within 24–48 hours if documents are in order.
published on 1st July
Publisher : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.