Both give you money now and let you pay later. The difference is the cost once you carry a balance beyond a month.
Credit card
Interest-free for up to 45–50 days if you pay in full. After that, revolving interest is typically 36%–42% a year, and the minimum-due trap can keep a balance alive for years. Good for: expenses you will clear next statement, EMI conversions at a stated rate, and earning rewards.
Personal loan
Fixed rate (typically 10.49%–36% p.a.), fixed EMI, fixed end date. A one-time processing fee applies. Good for: anything above a month or two of your income, consolidating card debt, planned expenses like weddings or home repairs.
A quick rule
- Can you clear it with the next bill? Use the card.
- Will it take 3–36 months? A personal loan is usually cheaper, often by half.
- Already revolving card debt at 40%? A consolidation loan at 14%–18% cuts the interest sharply. Then stop using the card for spending you cannot clear.
Use our EMI calculator to compare the total interest on each route.
Published 4 October 2026 · General information, not financial advice.