Personal Loan VS Credit Card Savings Calculator

Loan Amount

Credit card Rate of Interest
Personal Loan
Rate of Interest 0
Emi per month ₹ 0
Emi savings ₹ 0
Total Savings ₹ 0
Credit Card
Rate of interest 11.4%
Emi per month ₹ 10,000
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FAQs on Personal Loan VS Credit Card Savings Calculator


Personal Loan

Credit Card

Interest Rates

Personal loans have a lower interest rate than credit cards.

Credit card interest rates are generally higher than personal loans and among the highest in the market.


Personal loans are better for larger expenses for which you can plan in advance like weddings, college tuition, home renovations, etc.

Credit cards are best used for immediate payments and spot purchases like booking air tickets, buying books for college, emergency expenses, purchasing electronics or appliances, etc.


Personal loans have structured repayment plans – a pre decided amount is fixed and must be paid for a set tenure

Credit cards are repaid on a monthly basis, with no fixed amount to repay each month. You can pay as much as you want, or as little as the minimum amount.


Personal loans must be applied for in advance, then approved, then disbursed. It is a relatively long process that gives you time to think about your spending needs. Best for large expenses.

Credit cards give you purchasing power immediately. Best for shopping.

Amount available

The amount of money extended by personal loans can be greater than with credit cards. Take personal loans if you have a large expense for which you can plan ahead.

Credit cards have spending limits and can only be used up to that limit. If you use the card to its limit and then you need additional funds, the card will be useless until you pay off the balance.


Commonly called a credit card loan – extending the amount of credit you take on your credit card to meet your expenses is a bad idea – if you have the option to take a personal loan. You should take a personal loan over a credit card loan any day. It may be a little more paperwork, but it’s worth it as you will save money in the long run.

A credit card should be used for the intended purpose of small credit extensions rather than to borrow large amounts to pay back later. If you miss an EMI on a personal loan, you will incur a smaller penalty than if you miss a credit card monthly payment.

Generally, interest rates on personal loans are lower than on credit cards. Personal loan interest rates can be negotiated/lowered based on your credit score and loan tenure, whereas interest rates on credit cards are constant – and quite high.

If you have a large one-time expense such as a wedding, medical expenses, college tuition payments, home renovation, etc. It’s better to take out a personal loan – as the interest rate will be lower than the equivalent amount spent by credit card. Even while paying back, personal loans are better because you know exactly how much to pay back – and for how many months. With credit cards, you may end up paying more one month and less the next month – making the eventual “tenure” longer and thus paying more as interest. If the expense is large and can be planned for – a personal loan should be applied for after the planning process and the amount should be treated as a one-time spend.
If you have small to medium or recurring expenses like booking flight tickets, repairing your car after an accident, purchasing appliances or electronics, etc. It’s better to use your credit card as the credit is available immediately, and you don’t have to plan for these expenses well in advance.
Credit cards and personal loans are specific tools with specific powers, that should be used intelligently depending on the situation.