For a large one-time expense the choice between a personal loan and a credit card EMI is not obvious. The right answer depends on the amount, the tenure and the fees printed in fine print.
When a personal loan wins
For amounts above ₹1 lakh and tenures beyond 12 months, a personal loan at 11 to 15 percent almost always costs less than a card EMI at 15 to 24 percent effective.
Personal loans also allow part-prepayment after a few EMIs, which lets you clear the balance early and save interest.
When a card EMI is the better call
For smaller ticket sizes with tenures under 12 months, no-cost EMIs from card networks with brand partners can beat any personal loan, since the interest is subsidised by the merchant.
Card EMIs also skip a fresh application and disbursal, which matters if you need the item today.
Ready to take the next step?
Talk to the nSquare advisory desk for a plan tailored to your numbers.
