Personal Loan vs Credit Card Loan – Which is Smarter in 2025?
Vizzve Admin
📰 Introduction
Need money urgently in 2025? You might be wondering:
Should I take a credit card loan or a personal loan?
Both seem quick — but they work very differently, especially when it comes to interest rates, repayment, and long-term impact on your finances.
Let’s break it down to help you choose the smarter option.
📊 Personal Loan vs Credit Card Loan – Quick Comparison
| Feature | Personal Loan | Credit Card Loan |
|---|
| Interest Rate | 10% to 18% annually | 24% to 42% annually |
| Loan Amount | ₹10,000 – ₹20,00,000 | Limited to card limit |
| Repayment Tenure | 6 months – 5 years | 3 – 24 months |
| Approval Process | Requires basic KYC, bank review | Instant if card issuer allows |
| Flexibility | High – custom EMIs, longer terms | Short term, rigid EMI plans |
| Credit Score Impact | Positive with timely repayment | Risky if utilization is too high |
| Prepayment Charges | Low or none (Vizzve = zero) | Usually applicable |
| Usage Scope | Medical, education, business, travel | Mostly consumer spending |
Why Personal Loans Are Smarter in 2025
1. Lower Interest Rates
Credit card loans can go as high as 42% per annum, while personal loans from platforms like Vizzve Financial start from just 1.5% per month.
2. Higher Loan Amounts
Need ₹1 Lakh or more? A credit card limit may fall short. Personal loans offer up to ₹20 lakhs based on your profile.
3. Better for Credit Score
Using too much of your credit card limit reduces your CIBIL score. But a well-managed personal loan can improve your credit history.
4. More Tenure Options
Personal loans allow longer, flexible repayment, reducing your EMI burden. Credit card loans are shorter and often come with high monthly EMIs.
💡 When Credit Card Loan Might Make Sense
-
You already have a high-limit card
-
You need money instantly (within minutes)
-
You’ll repay within 1–3 months
But even then, compare the interest rate and repayment flexibility with Vizzve Financial before deciding.
💸 Vizzve’s Personal Loan Advantage
👉 Apply Now at www.Vizzve.com
🙋 Frequently Asked Questions
Q1. Is a credit card loan faster than a personal loan?
A: In some cases, yes — but Vizzve also offers same-day disbursals with PAN + Aadhaar.
Q2. What if I have low CIBIL?
A: Vizzve uses alternate score systems, bank behavior, and digital activity.
Q3. Can I pre-close the personal loan early?
A: Yes. Vizzve loans come with zero prepayment penalty.
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