Personal loan or credit card what is best for you?

Nowadays it is quite easy to opt for credit facilities , One can take any  type of loan depending upon the purpose behind it. Whether to buy new house or latest gadget from apple store it can be accessed with ease. The Real question is should you opt for taking loan from a bank or avail credit Card facility since both of them fulfils your needs  

In today’s article we’ll be talking about whether should we avail personal loan or take credit card facility when we need funds So let’s begin 

What Exactly is personal loan facility? 

 It can be described as one of The flexible sources of taking credit where Usually no collateral and security is required. One gets quick access to funds and can Manages his/her own financial plans in a better Manner. Whether you want to buy latest smartphone or repay your children school fees you can take personal loan and repay them With flexible repayment options.

Usually you can borrow huge funds with help of personal loans and the funds can be borrowed for long tenure.

What is Credit Card and  how’s it different from personal loan?

 It is a plastic card having a magnetic strip, issued by a bank or business authorizing the holder to buy goods or services on credit. Credit card is Issued by financial institutions like banks and It gives  customers a pre-set credit limit which he can use to pay for his purchases without having to pay in cash or issuing a cheque. Let’s say you swipe your credit card for monthly grocery purchases your account accrues a balance that must be paid off each month that is you need to pay that amount next month.

Whenever banks issue a credit card there is pre-defined limit on maximum amount one can avail through this facility. When you have a high limit for the credit card, it allows you to spend more and this will help your credit scores

What is the minimum eligibility for getting personal and credit card loans?

Age Criteria

Generally the minimum age to go apply for loan and credit card Is 21 years but this isn’t uniform across the all Banks many banks requires you to have Minimum age of 23 years.

Minimum income criteria 

You should have minimum monthly income so as to qualify for both personal and credit card loan. Mostly Banks requires you to have ₹15000 pm to be Eligible for applying for a personal loan on other hand the amount in case of credit card loan is ₹25000 in case of top lenders. 


 Banks are willing to give you loans if you have stable Monthly income or you are working for a Reputed organisation since that ensures your Credibility and financial background. Both in case of credit card and personal loans Normally for salaries individuals the Requirements is that they need to be Employed At current company for at least 6/12 months And for individuals who are Self-Employed Should be associated with Business that is Having tenure of at least 3 years. 

Now the real question which is the best source to take credit from? 

To Make you understand things in simpler manner I’ve elaborated all the key aspects into different parameters 

  1. Time Consuming

Incase of personal loans since lot of documentation like nationality and income proof is involved it is a long and tedious process on other hand application process in credit card is quite fast as there is less documentation involved. 

  1. Interest Rates 

This is where the real difference is interest rate charges on personal loan ranges from 13%-22% and interest rate can be restructured and there is  a Reducing balance option not like credit cards where interest charges is between 12%-18 and it’s a flat rate of interest. 

  1. Loan Duration 

Loans on credit card can be borrowed for shorted period of time let’s say 1 month  on other hand for personal loans it has fixed duration of 12- 48 months. 

I’m attaching a table below summarising all the key differences between the two ;

When should you Apply for credit care?

  1. When you can easily repay the amounts in 30-45 days.
  2. When you have good credit card limit and you can easily do big ticket purchases.
  3. Let’s say you’re not eligible for personal loans and are in urgent need of funds.
  4. Want to buy gadgets online? Credit card are best way to go

When should you apply for personal loan?

  1.  The benefit here is you can repay the amount in long duration.
  2. When you’re planning to buy tangible assets like Car or any other expensive items.
  3. When you need funds which are beyond your credit limit but you meet all the necessary criteria to avail loan.


Both personal and credit card loans are at par with each other. It really depends upon your credit profile and need of funds to determine which one is clear winner among both of them but wait! 

No matter what you need MoneyLoji has a solution for you be it any loan with a flexible repayment option and the lowest interest rate across the whole market so apply for a personal loan Now! 

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