LEAP APP UPDATED

 

PERSONAL LOAN VS CREDIT CARD LOAN – WHICH IS BETTER FOR YOU IN 2025?

Description 

Compare Personal Loans vs Credit Card Loans in 2025. Understand interest rates, repayment terms, benefits, drawbacks, and which option is best for emergencies or big expenses.

---

INTRODUCTION

When you need quick money, two major options come to mind: Personal Loan or a Credit Card Loan.

Both offer instant funds, but choosing the wrong one can cost you thousands in interest.

This guide explains the key differences, advantages, costs, and when to choose what — in a simple, professional, AdSense-friendly way.

---

⭐ 1. WHAT IS A PERSONAL LOAN?

A personal loan is a fixed-term loan provided by banks or NBFCs with a definite repayment period.

Key Features

• Fixed EMI

• Tenure 1–5 years

• Lower interest compared to credit cards

• Good for large expenses

Average Interest Rates (2025)

• 10% – 18% annually

---

⭐ 2. WHAT IS A CREDIT CARD LOAN?

A credit card loan is borrowed against your credit limit, usually for short-term needs.

Key Features

• Instant approval

• Good for small emergencies

• Expensive compared to personal loans

Average Interest Rates (2025)

• 24% – 36% annually

---

⭐ 3. PERSONAL LOAN VS CREDIT CARD LOAN — QUICK COMPARISON TABLE

Feature	Personal Loan	Credit Card Loan
Interest Rate	10%–18%	24%–36%
Loan Amount	Higher	Limited by credit limit
Repayment	Fixed EMI	Short-term
Approval Time	2–24 hours	Instant
Best For	Big purchases	Small emergencies

---

⭐ 4. WHEN SHOULD YOU CHOOSE A PERSONAL LOAN?

✔ Medical expenses

✔ Home renovation

✔ Education fee

✔ Debt consolidation

✔ Higher amount (₹1 lakh – ₹20 lakh)

---

⭐ 5. WHEN SHOULD YOU CHOOSE A CREDIT CARD LOAN?

✔ Short-term emergency

✔ Need instant money

✔ Small amount (₹5,000 – ₹1,00,000)

✔ You already have a credit card

---

⭐ 6. WHICH IS BETTER IN 2025?

For most people, Personal Loan is better because:

• Lower interest

• Longer tenure

• Higher amount

Credit card loans are only good for instant and small needs.

---

❓ FAQs

1. Which loan is cheaper?

Personal loan.

2. Which loan is faster?

Credit card loan.

3. Does taking a loan affect credit score?

Yes, both affect credit score based on repayment.

4. Can students get these loans?

Only if they have income or guarantor.

Disclaimer:

This article is for educational and informational purposes only. It is not financial advice. Loan interest rates, eligibility, and terms vary by bank and country. Before applying for any loan, consult an authorized financial advisor or your bank. We do not promote or endorse any specific loan product, and the platform is not responsible for financial decisions made by readers.