Personal loan · 5 min read · 28 Jul 2026
Personal loan vs credit card for a ₹3 lakh expense
When a fixed EMI is cheaper than revolving credit — with a simple interest comparison.
Credit cards charge roughly 3–3.75% per month if you revolve. That is far above a 12–18% personal loan.
Use a card if you can clear the bill in one cycle and want rewards. Use a personal loan if the expense will sit for 6–36 months.
A ₹3 lakh card balance at 36% annualised costs dramatically more than a 14% personal loan over 24 months.
Consolidation only works if you stop using the cards after the loan is disbursed.
