Which is better? personal loans or a credit card loan? The answer depends on your financial requirement, the time duration for which you require the loan, and how soon we require it. 

What Is A Credit Card Loan?

In a credit card loan, you can take a loan against the credit card limit you have been given. Once the bank approves your loan proposal, the limit will be credited to your account. The bank charges you an interest rate for the repayment of the loan, and you can repay the loan through EMIs. 

What Is A Personal Loan? 

A personal loan is an unsecured loan procured for different reasons, such as weddings, medical expenditures, debt consolidation, and so on. The interest charged is quite high as it is an unsecured loan and does not require collateral. 

Credit Card Loan Vs Personal Loan


Credit Card Loan 

Personal Loan


Does not need any documentation and is faster to obtain 

Needs appropriate documents and takes a few days for approval

Interest rates 

A credit card loan is offered at an interest rate of 10 to 18%. A credit card loan can be availed at a flat interest rate. The interest outflow remains the same throughout the tenure of the loan. 

A personal loan is offered at an interest rate of 13 to 22%. A personal loan is available with reducing balance rates. The interest outflow decreases. 


This is an unsecured loan 

This is also an unsecured loan 


This loan is taken for shorter tenures 

This loan is taken for longer tenures 

Loan Amount 

When in need of a small amount of loan, this option is suitable. 

With the help of a personal loan, you can avail a huge  amount.