Personal loan EMI vs credit card EMI which is cheaper?

Short answer
In most cases, a personal loan EMI is cheaper than a credit card EMI. But usage and tenure matter a lot.

Interest Rate Difference

Personal loans usually have lower interest rates compared to credit cards. A personal loan may cost around 10 to 18 percent per year, depending on your profile. Credit card EMIs often work out higher, especially if they are not true no-cost EMIs. Monthly burden thoda zyada feel hota hai in card EMIs.

Tenure and Flexibility

Personal loans offer longer tenures, from 1 to 5 years. This spreads the cost better and keeps EMIs manageable. Credit card EMIs are usually shorter, often 3 to 12 months. Short tenure means higher monthly EMI even if the purchase amount is small.

Charges You Should Watch

Credit card EMIs may look cheap upfront, but processing fees, GST on interest, and foreclosure charges can increase the real cost. Personal loans also have fees, but they are usually more transparent. Hidden costs yahin pe confusion create karte hain.

Impact on Credit Usage

Credit card EMIs block your card limit. If you use a big chunk of your limit, your credit utilisation goes up, which can hurt your credit score. Personal loans do not affect card limits, so overall credit balance better dikhta hai.

When Credit Card EMI Makes Sense

If you get a genuine no-cost EMI and plan to repay in a short time, credit card EMI can work. But control zaroori hai, warna multiple EMIs pile up quickly.

Final Takeaway

For bigger or planned expenses, personal loan EMI is usually cheaper and safer. Credit card EMI is okay for short-term, controlled use. EMI cheap lagna kaafi nahi hai. Total cost and repayment comfort clear hona chahiye.