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Personal Loan or Credit Card Loan: Which one should you go for?

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While the credit card loan offers are appealing and lure most of the customers, it is ideal to say that many people get befooled of not reading T&Cs properly. Make sure that you’re reading the most important note: GST on your EMIs is charged at the rate of 18%.

When you start a business or just randomly want enough finances, you wish to avail of a loan in order to bolster your needs. Unexpected expenditure can be incurred at an indefinite time. It can be a call of a medical emergency or to be a globetrotter and desire to travel the world. Multiple instances or unalarmed emergencies can happen and call for the instant requirement of a huge amount of cash.

Many people believe that this can be fulfilled by applying for a loan and one can meet their requisites. One can get a personal loan or credit card loan as the most accessible option from the bank. Various lenders offer the borrowers pre-approved loan offers.

There are plenty of protocols to secure a loan for your financial requisites. There have been so many advancements in different banks. But, nowadays, getting a personal loan or a credit card loan has become quite easy if you have got the right lender.

Both the loans have their own set of advantages and disadvantages

That’s why one should totally understand the purpose of getting lent and most importantly, the ability to repay the loan amount.

In reality, if you’re still confused about which one to choose.. we have created a list of few pointers that one can keep in mind before coming to the final decision.

There is an 18% GST on the interest amount if you take a credit card loan. While the offer may sound quite appealing, don’t forget that you will be charged 18% GST on your EMIs. This is just the interest charge and there are other charges which make the whole amount on an expensive bet that needs to be taken out on a monthly basis. On the contrary, there is just the processing fee which means that you incur 18% on the 1–2% charge. We make it simpler for you:

When you take a personal loan

you won’t realize it in the initial few months. But later after some time, you will realize that there has been a good change in your total expenditure. Why? Because you have chosen the personal loan over a credit card loan. Still, don’t believe us? Use a credit card loan calculator and a personal loan calculator and start computing all these values. You will understand all the sanctions that are based on your finances and not the limit of your credit card.

You get a personal loan on the basis of your credit score. The banks check the status of your financial profile and lend you a personal loon accordingly. If you have maintained a good friend’s credit score, then there is no issue in getting an ICICI top up a personal loan. One can easily get the desired loan amount without any hassle. On the contrary, you need to take assistance for your credit card loan to check with what limit is convenient. When you need a larger amount of money, it is better to get assisted with various banks for your credit card loan. As it is ideal to say that a personal loan works well in this situation.

Did you know? The loan installments of your credit card loan is reduced from your limit of the spendings. This is one into your list after is to understand well.

Let’s understand this through an example:

Isha gets an approval of the monthly limit of INR 1 Lakh and the EMI for the loan amount is INR 20,000/-, the amount of the finances that one has for relative expenses amounts to be INR 80,000/-

This signifies that even if you get a credit card loan approved and get the funding accordingly; you still have to compromise on other expenses. It is certainly relative to the lower and a restrictive credit limit.

The duration of the tenure of a personal loan repayment can range up to 5 years. The best advantage of getting a personal loan is that one can repay the tenure anytime between which is ranging up to 60 months. It helps in facing the reality of expenditure. It eliminates the risk of default. This relatively falls under the umbrella of your budget. Whereas, the tenure of a credit card loan can range anywhere between 12 to 48 months. This further implements to that if you’re borrowing a larger sum of money, it will directly impact on your EMIs. The amount of money on your EMIs will also be higher. The bar of the repayment gets smaller as compared to that of a personal loan.

In addition to this, an individual can also apply for a Flexi personal loan. The best feature of this loan is that it allows the individual to borrow from the sanction numerous times. So, whenever you are in dire need of finances, you can apply for this personal loan. One can also opt for the half payment, which is to pay partly. To top it off, one can reduce their monthly installments by up to 45% when you have the access to relative funds.

If you wish to lower down the processing duration of your overall loan, check for the pre-approved offer and you may also get a customized deal and get an instant approval on your secured loan.

According to your needs

 one may choose from the two – a personal loan or a credit card loan. Both of the options will help you to attain financial goals or whatever obligation is stopping you.

As stated in this blog, a Personal loan is more flexible if we compare it with the credit card loan. The fiscal prudence is more. You can search for many lenders that provide personal online, even for a small sum of money. Nowadays, customers are being active and taking personal loans even for small purchases. If you have any doubts, please feel free to drop your queries in the comments section below.

 

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