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Loan on Credit Card vs. Personal Loan

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HDFC Bank
10 Second Disbursal*100% Digital Process*Quick Disbursal
Max Loan Amt.Upto β‚Ή25L
Rate of Interest9.99% - 12.5%
Tenure upto1-5 Years
Processing Feeβ‚Ή 6,500
ICICI Bank
100% Digital Process*Quick Disbursal
Max Loan Amt.Upto β‚Ή25L
Rate of Interest11% - 13%
Tenure upto1-5 Years
Processing FeeUpto 2%
Axis Bank
Low Processing fee
Max Loan Amt.Upto β‚Ή25L
Rate of Interest9.99% - 17.15%
Tenure uptoUpto 6 Years
Processing FeeUpto 2%
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How Can I Apply for a Personal Loan Online?

Get up to β‚Ή40 Lakh in 5 Simple Steps

Step 1: Enter your mobile number in the application form

Step 2: Provide your personal details

Step 3: Enter OTP to verify your mobile number

Step 4: Select the loan purpose and loan amount

Step 5: Compare offers and apply for the best-suited loan

Loan on Credit Card vs. Personal Loan

Choosing the type of loan totally depends on your individual requirements. Both Credit Card Loan and Personal Loan come with their own set of advantages and disadvantages, hence you should opt for the one only after understanding your purpose of borrowing and your repayment capacity. Here we have drawn a comparison between the two which will surely help you make the ideal choice.

Credit Card Loan
It is a pre-approved loan that does not require any documentation. However, in this type of loan, a certain part of your credit limit that is unutilized is offered as a loan. Loan on a credit card is not the same as a cash withdrawal.
Personal Loan
It is an unsecured loan taken for various purposes including a medical emergency, expensive purchases, debt consolidation, etc.Β  It does not require any collateral and the processing time is quick.

What is Credit Card Loan?

Loan on Credit Card is a pre-approved loan extended to you on the basis of credit card usage, repayment and history. Being a quick and convenient method of borrowing, it can be very helpful in case of a financial emergency. However, the interest rate on loans against credit cards is usually higher than that on a personal loan.

What is Personal Loan?

Personal Loan is an unsecured loan provided by banks or financial institutions on the basis of certain criteria such as employment history, repayment capacity, income level, profession and credit history. Also known as Consumer Loan, it is a multi-purpose loan that can be used to meet any of your immediate needs.

Credit Card Loan Vs Personal Loan

Following are the significant parameters on which credit card loans differ from personal loans-

Basis of Difference Credit Card Personal Loan
Eligibility Only select credit cardholders are eligible Non-customers of the bank may also apply
Procedure for Borrowing By accepting a pre-approved offer extended by the bank or by applying for the same By applying to a bank or financial institution with documentation
Disbursement Credited directly to savings/current account (if with the same bank) or in the form of a cheque Amount paid as a lump sum to the customer’s savings/current account or via cheque
Approval Time Within 24 hours 3-5 business days
Repayment EMIs added to monthly credit card statement for the said tenure As EMIs to the bank for a specified tenure
Tenure Usually from 1 to 5 years Usually from 1 to 5 years
Borrowing Limit Up to the pre-approved limit set by the provider To be calculated by the bank on the basis of income proof
Interest Rates Higher than personal loans; varied from bank to bank and may also vary from customer to customer 10.50% onwards; depends on the customer’s income and credit history
Documents No additional documents required Identity proof, address proof and income proof required

Avail Personal Loan for
All Your Needs

When to opt for Credit Card Loan?

You should go for a credit card loan when you-

  • When you require immediate access to cash
  • When you have a comparatively smaller requirement
  • When you are not eligible for a personal loan
  • If you are getting an attractive interest rate in comparison to personal loan

When to opt for Personal Loan?

You should go for personal loan when you-

  • Need loan for a comparatively bigger amount
  • Can wait for up to a week for the loan to get approved and disbursed
  • Wish to compare multiple offers and then choose a loan
  • Need to pay a business or person who does not accept credit cards

How Can I Apply for a Personal Loan Online?

Get up to β‚Ή40 Lakh in 5 Simple Steps

Step 1: Enter your mobile number in the application form

Step 2: Provide your personal details

Step 3: Enter OTP to verify your mobile number

Step 4: Select the loan purpose and loan amount

Step 5: Compare offers and apply for the best-suited loan

Avail Personal Loan for
All Your Needs

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What our customers say

My Trust in Paisabazaar has Increased

I would like to take a moment to share my sincere feedback regarding the support I received from your team. The executive who assisted me was extremely professional, polite, and knowledgeable. They patiently understood my concern, explained the process clearly, and guided me step by step toward the right solution. I truly appreciate the transparency, timely responses, and genuine effort shown to help me.

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Lalit MaviFeb 12, 2026

Best Place for Taking Loans

I contacted customer care with a few queries, and I am very satisfied with the support I received. The representative was polite, patient, and explained everything clearly. My questions were resolved properly, and the overall experience was smooth and helpful. Thank you for the excellent customer service

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Kokil BarnwalFeb 12, 2026

Apne higher education ke liye loan liya tha

Muhje higher education ke liye loan chahiye tha. Paisabazaar pe apply kiya. Got it at the right time. Quite helpful.

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Puja DanuJan 22, 2026

Sabse jada helpful log the yaha

Maine bht jagah try kiya tha personal loan ka, yaha try kiya toh helpful log mille. Har steps mai aram se samjhaya or usse muhje loan lene mai jda dikkat nhi aayi.

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Anuradha GuptaJan 21, 2026

Best Advisor for Personal Loan

I would like to share my feedback regarding my recent interaction with Mr. Vipin Singh (employee id EW12967) After discussing the financial matters with him, I felt very satisfied with his approach and professionalism. He explained everything clearly, handled the discussion patiently, and ensured that all concerns were addressed effectively. His communication skills, positive attitude, and dedication towards his responsibilities truly reflect his commitment to the organization.

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20th Jan 2026Jan 20, 2026

Meri shaddi thi

Shadi mai bht kharche hote hai. Maine shaddi ke liye personal loan paisabazaar se liya tha. Process smooth tha or interest bhi sahi milla.

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Sadia KhatunJan 15, 2026

Perfect for Loan Solutions

Recently I had a conversation with Mr. Harsh ji. Thanks Mr. Harsh ji for providing a better solution in a very short period of time with very nice behaviour. Thank You very much.

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Amit ChahalJan 15, 2026

Travel ke liye personal loan liya tha

Mai bohot din se out of India ghumne jana chahti thi lekin jab jane ka time mila toh budget kaam padh raha tha, Paisabazaar se personal loan leke bht acha trip kiya. Maza agaya. Mere upar koi burden bhi nhi padha

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Tarini RoyJan 14, 2026

Easy personal loan available

Took personal loan. Good experience.

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Ruchika TiwariJan 14, 2026

Stress-free Laon Borrowing Process

There was a complication with my KYC verification. Paisabazaar’s Shazeb handled it swiftly and professionally. He ensured that I received regular updates, explained the resolution steps clearly, and most importantly, resolved the issue quickly. His prompt assistance and communication made the entire experience smooth and stress-free. Thanks to his efforts, the loan process was completed without further delays.

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Abhishek ThakuraJan 14, 2026
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