Need urgent funds and wondering whether to go for a personal loan or swipe your credit card? Both offer fast access to money — but choosing the wrong one can cost you more in the long run. Let’s break down the differences, benefits, and ideal use-cases so you can make a smart borrowing decision with Vizzve Finance.
🔍 Understanding the Basics
Personal Loan
Type: Unsecured
Disbursal: Lump sum credited to your bank account
Repayment: Fixed EMIs over a pre-decided tenure
Interest Rates: 10% – 24% per annum
Ideal For: Planned expenses like weddings, medical emergencies, home renovation
Credit Card Loan
Type: Revolving credit or pre-approved loan against your card limit
Disbursal: Instant – depends on card issuer
Repayment: Either full due amount or minimum payment each month
Interest Rates: 30% – 42% per annum (if unpaid)
Ideal For: Short-term, smaller, or emergency spends
⚖️ Key Differences: Personal Loan vs Credit Card Loan
| Criteria | Personal Loan | Credit Card Loan |
|---|---|---|
| Loan Amount | ₹50,000 to ₹25 Lakhs | Depends on credit limit |
| Tenure | 6 months – 5 years | Flexible; revolving or EMI-based |
| Interest Rate | Lower (10% – 24%) | Higher (30% – 42%) |
| Processing Time | 24–48 hours (instant via Vizzve) | Instant or within minutes |
| Collateral | Not required | Not required |
| Repayment Method | Monthly EMIs | Revolving credit or EMIs |
| Best Use Case | Large or planned expenses | Urgent small spends or short-term needs |
✅ When Should You Choose a Personal Loan?
You need a higher loan amount
You want fixed EMIs and lower interest
You’re planning a big-ticket expense like a wedding, medical emergency, or business investment
You don’t want to exhaust your credit card limit
💡 Vizzve Finance Tip: Use our personal loan options to get fast, flexible financing with minimal paperwork.
✅ When Should You Choose a Credit Card Loan?
You need quick cash for a small, urgent need
You plan to repay it within 30–45 days
You’re eligible for a zero or low-interest EMI offer on your card
You’re comfortable managing revolving credit
💡 Vizzve Finance Tip: Use your credit card loan only if you're sure of repayment within the billing cycle to avoid high interest.
🛡️ Vizzve Finance Smart Borrowing Checklist
✔️ Compare interest rates before choosing
✔️ Understand repayment terms clearly
✔️ Never borrow more than what you can repay
✔️ Use Vizzve’s EMI calculator to plan ahead
✔️ Maintain a good CIBIL score for better offers
🙋♂️ FAQs
Q1. Which is cheaper: personal loan or credit card loan?
Usually, personal loans have lower interest rates than credit card loans, especially for longer tenures.
Q2. Can I get a personal loan quickly like a credit card loan?
Yes. With Vizzve Finance, personal loans are processed instantly if you meet the eligibility criteria.
Q3. Is it okay to use both simultaneously?
It’s possible, but use caution. Borrowing from both at once can increase your debt-to-income ratio and impact your credit score.
Q4. Will taking either type of loan affect my credit score?
Yes. Timely repayments boost your CIBIL score, while defaults or delays harm it.
published on 2nd july
Publisher : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.