Depending on the type of urgency and requirement, one can opt to take a credit card loan or a personal loan. But what is the difference between a credit card loan and a personal loan? Read along to know more.
A personal loan is an unsecured loan that is provided by a bank. You can get a personal loan instantly as you will not have to submit a lot of documents. Such a type of loan is provided without any security or collateral. As a result, the rate of interest charged by the bank, which is providing you the loan, could be sometimes slightly higher than an auto loan or a home loan.
You can take a personal loan for various reasons such as wedding expenses, medical emergencies, urgent foreign travels, and so on. You can repay the loan amount during the repayment tenure in monthly installments. Personal loans are usually easy to avail, as the process is not tedious. So, if you have an urgent situation at hand and you need a substantial amount of money to handle the situation smoothly, then you can opt for an instant personal loan. However, to get a personal loan without any complication, you must have a high CIBIL score (700 and above) and a good history of loan repayment (if any).
If you want to take a personal loan with a reasonable rate of interest and a convenient EMI plan, then Money View can help you with it. At Money View, we offer personal loans without charging hefty interest rates. Also, your bank account will be credited with the loan money instantly and without you having to submit a lot of documents. However, you will have to submit your ID proof, address proof, bank statement (for salaried individuals), and IT returns (for self-employed individuals).
A credit card loan is a pre-approved loan or a pre-qualified loan that is easily credited to your bank account without any delay. All credit cards have a credit limit. A credit card loan amount is set against the credit limit. The unutilized amount of your credit limit is given as the loan amount.
This loan amount is credited to your bank account after the bank approves your request. It is also sometimes given in the form of a demand draft. You can choose in which form you want the amount to be credited. To get your loan approved, you do not have to submit any document. Such loans also do not have extremely high rates of interest. And, like other types of loans, you can repay your credit card loan in monthly EMIs.
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.
Your eligibility does not match with the requirements needed for a Personal Loan.
