Personal Loan

Credit Card Loan vs. Personal Loan

Which one should you choose - Personal Loan or Credit Card Loan?

Here are a few comparisons between a personal loan and credit card loan:

● You need to submit a few documents and complete a simple verification process to get a personal loan. However, there is no need for additional documentation in case of a credit card loan, as your lender already has your details.
● You can borrow a larger amount with the help of a personal loan. A credit card loan is suitable when you need small loan amounts.
● Personal loans have a longer tenor while credit card loans are ideal for a shorter period.
● You do not need to pledge any collateral to apply for a personal loan or credit card loan as both are unsecured loans.
Personal loan interest rates differ from credit card loan interest rates. Lenders also apply processing fees and other charges, so find out and compare these details before you make a decision.

First analyse the sum of money you require. Then check if the tenor suits you and the repayment is feasible against the utilization of the loan amount. For a small monetary emergency, a credit card loan can prove to be the best. But in case you need a big amount, then opt for a personal loan.

Additional Reads:
How do lenders decide Personal Loan eligibility?
What is CIBIL Score?
How to calculate foreclosure of Personal Loan?
How is interest calculated on Personal Loan?