Download AppWin Assured Cashback
Paisabazaar Logo - Compare loans and credit cards

Loan on Credit Card vs. Personal Loan

4.5/5

15.6L Reviews

5.7cr+Satisfied Customers
65+Lending Partners
β‚Ή65k Cr+Loans Disbursed
Icon image of Wide Choice

Wide Choice

Curated offers from 30+ lenders

Icon image of Quick Disbursal

Quick Disbursal

Money in your account instantly

Icon image of SmartMatch

SmartMatch

Offers ranked according to eligibility

Icon image of Digital Process

Digital Process

Hassle-free & paperless

Find Best Personal Loan Offers

Sort by:

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%
Why Choose Paisabazaar?
image of Compare & Choose the <strong>Best Offer</strong>

Compare & Choose the Best Offer

image of Pre-approved Offers with <strong>Instant Disbursals</strong>

Pre-approved Offers with Instant Disbursals

image of Know Your <strong>Chances of Approval</strong>

Know Your Chances of Approval

image of End-to-End <strong>Digital Process</strong>

End-to-End Digital Process

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

Apply Now

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

Avail Personal Loan Banner

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

Apply Now

Avail Personal Loan for
All Your Needs

Avail Personal Loan Banner

Avail Personal Loan for
All Your Needs

quotes icon

What our customers say

Smooth & hassle-free loan approval experience

I want to express my gratitude for your exceptional support & guidance throughout my loan application process to Aman (EW17239). Your professionalism & clear communication made the journey smooth and manageable. I appreciate how you helped during loan approval & fast-tracked the documentation. It is rare to find someone so committed to their clients. I truly value the effort you put into ensuring a successful outcome. Thanks again for your invaluable help.

icon image of avatar
Sanjay Kumar GuptaMar 30, 2026

Exceptional guidance throughout the process

I’d like to express my sincere appreciation for Mr. Aman Kumar (EW32023) for the excellent assistance provided. His professionalism & willingness to help made the experience smooth & pleasant. Aman Kumar demonstrated patience & clarity while addressing queries and ensured that everything was handled efficiently. Such dedication & customer-focused service truly deserve recognition. Please convey my thanks and appreciation to him for his outstanding support.

icon image of avatar
Jyotirmoy SinghaMar 23, 2026

Very helpful and easy to reach

I really wants to appreciate Mohankumar Dhandapani for closing my loan requirement in such a short time and nice manner. He is very much approachable helped me based on my requirements. He explained me all the options in very short time even one option failed immediately helped me to get other options worked. Excellent job done by Mohankumar Dhandapani all the best keep you same way approachable you will get more customers. Thanks to Paisabazar too.

icon image of avatar
Kirubagaran GanesanFeb 24, 2026

Reliable help when i needed it most

I am writing this email to express my sincere thanks for your excellent support and guidance on Paisabazaar. My experience was very smooth and satisfying because of your help. You explained everything clearly and made the whole process easy and comfortable for me. I truly appreciate your professionalism, patience, and quick response. I am very happy with the service and would definitely recommend to others because of the great support I received from you. Thank you once again

icon image of avatar
DharmeshFeb 22, 2026

Committed support that made everything easy

I’d like to appreciate the Paisabazar team for the excellent loan service. I especially want to recognize one of your agents, Mr. Prince Kumar, for his outstanding support. For more than a month, he continuously followed up with me and assisted me. His commitment & professionalism made the experience smooth & hassle-free. I appreciate his efforts and dedication. Kindly acknowledge his performance and consider rewarding such a sincere employee.

icon image of avatar
BhupendraFeb 18, 2026

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.

icon image of avatar
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

icon image of avatar
Kokil BarnwalFeb 12, 2026

Easy loan approval with good guidance

Thank you for the support provided for getting personal loan approval. During this process I worked with Mr. Aman Bajpai (EW17239) who was co-ordinator for this entire process of Personal loan, I was incredibly impressed by his efficiency and problem-solving skills. He went out of their way to ensure all my questions were answered and that the disbursement timeline stayed on track. His coordination was really appreciable.

icon image of avatar
Riyaj AtarFeb 9, 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.

icon image of avatar
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.

icon image of avatar
Anuradha GuptaJan 21, 2026
View All Testimonials
Vandana Punj profile
Written ByLinkedIn icon
Vandana Punj
Shamik Ghosh profile
Reviewed ByLinkedIn icon
Shamik Ghosh

Paisabazaar is a loan aggregator and is authorized to provide services on behalf of its partners.

The APR (Annual Percentage Rate) of a personal loan is its annualised cost of borrowing, which includes the interest rate as well as the processing fees, documentation fees and other fees charged during the loan origination. The APR is expressed in the form of a percentage and thus, allows personal loan applicants to detect personal loan schemes offered at lower interest rates but with higher processing fees and/or other charges.

The APR of personal loans usually ranges between 11.29% to 35%. For example, assume that you have availed a personal loan of Rs. 5 lakhs @ 10.50% p.a. with a repayment tenure of 5 years. The processing fee charged for this loan is 1.5% of the loan amount, which amounts to Rs 7,500. Therefore, the total borrowing cost of your personal loan will be Rs 1,52,317 and its APR will be 11.16%.

Address: Paisabazaar Marketing & Consulting Pvt. Ltd. 135 P, Sector 44, Gurugram (HR) 122001

Knapsack with coins

Check Best Personal Loan Offers
with Quick Disbursal

Scroll to top