Credit Card Loan Vs Personal Loan

Depending on the urgency and requirement, one can opt to take a credit card or a personal loan. But what is the difference between a credit card loan and a personal loan? 

Read on to know more.

Difference Between A Personal Loan And A Credit Card Loan


Personal Loan

Credit Card Loan


Apply through the lender’s website or mobile banking app. 

You can accept the pre-approved offers on your credit card or apply for a loan via the respective bank.

Borrowing Limit

Depends on the income and is calculated by the lender.

It depends on the pre-approved limit that the lender sets.

Interest Rate

At moneyview, the interest rate starts from 1.33% per month. This can change depending on your credit score, financial behavior, and so on. 

Usually, the interest rate for credit card loans is higher than that of personal loans. 


Minimal documentation is required. 

No documents required.

What is A Personal Loan?

A personal loan is an unsecured loan that banks or other financial institutions provide. Personal loans are instant and require minimum documentation. Customers are not required to provide collateral as security for a personal loan, making them easier to avail.  

The amount you receive as a loan and its interest rate depends on several factors such as income, credit score, credit history, and more. 

The money from this loan can be applied to any valid need for financial support. It must be repaid in line with the conditions set forth by the bank, just like any other loan. 

Personal Loan Eligibility Common Factors

The eligibility criteria for a personal loan can vary depending on the lender, but common factors that lenders typically consider when determining eligibility include:

What Are The Benefits of A Personal Loan?

Personal loans offer several benefits to the end user. Here are some common advantages of taking a personal loan

What is A Credit Card Loan?

Credit cardholders can borrow against their available credit limit through Loan Against Credit Card to get immediate funds. It provides easy access to money without requiring extra paperwork or security. The borrowed sum is then repaid in installments, with interest charges.

Credit Card Loan Eligibility Common Factors

The requirements may vary depending on the lender, but you need to meet the following requirements:

What are The Benefits of A Loan Against A Credit Card?

Here are the benefits of a loan against a credit card:

Should I Opt For a Personal Loan or A Credit Card Loan?

You can avail of a personal loan if your requirement is for a large expense and you are willing to pay for it in EMIs over an extended period of time. For example, if you want a large sum of money for a family wedding, then you can opt for a personal loan.

You can take a credit card loan if you know that you can pay off the amount quickly as compared to a personal loan. For example, if you want an additional amount of money to purchase furnishing products for your home, then you can opt for a credit card loan.

Check the following to know more:

When to Apply for a Personal Loan

When to Apply for a Credit Card Loan


Credit card loans offer quick access and convenience but come with higher interest rates and fees. Personal loans, while requiring a formal application, often have lower interest rates and fixed repayment terms. Choosing between them depends on the urgency of funds and your ability to repay promptly.

Credit Card Loan Vs Personal Loan - FAQs

The answer depends on your requirements. If your requirement is not major, then you can opt for a credit card loan and repay it within a short tenure. If you need a sum of money that is higher than your credit card limit, then you can opt for a personal loan.

A credit limit is a maximum amount that is fixed by your bank for your credit card. For example, if your credit card limit is INR 50,000, then you won’t be able to spend more than the specified amount by using your credit card.

No, a personal loan will not negatively affect your credit score. However, if you miss your EMI repayment, then it will affect your CIBIL score negatively.

Yes, credit card loans are available to both new and old credit cardholders.

The rate of interest on a credit card loan is usually higher than on a personal loan. Also, if the repayment is not paid monthly, then severe penalties are applied.

Yes, you can apply for a personal loan online. Contact us at Money View to get your personal loan processed in no time.

Yes, you can apply for a credit card loan online via net banking or through your bank’s mobile app. If you wish to get more clarity, then you can opt to go to a bank to apply the same.

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