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Personal Loan or Credit Card: When should you opt for it?

Planning a big-ticket purchase?
You can take a personal loan or use your credit card to pay for it. 

Read through our guide to choose the best financing option for you. 

Personal loans vs credit card

Feature Personal Loan Credit card
Purpose Loan for a range of purposes, such as medical expenses, children’s education, wedding, home renovation etc Small and big purchases for business or personal needs
How to borrow By applying to a bank or financial institution with documentation By using credit card in-store or online
Disbursement Amount paid as lumpsum to the customer Paid directly to the merchant on card swipe
Repayment As EMIs to the bank for a specified tenure Paid by customer at the end of credit period
Tenure Generally from one to five years Free interest free credit period usually up to 45 days
Borrowing limit Calculated by bank based on proof of income Predetermined monthly credit limit
Interest rates  Competitive in comparison to cards after free credit period (i.e. beyond due date) Marginally higher than personal loans in case of delayed or part payments


When to buy via a credit card

  • When you want to buy something within your credit limit
  • When you have sufficient credit card limit for a big-ticket purchase.
  • When you want to buy instore or online
  • When you are not eligible for a personal loan

When to buy via personal loan

  • When you need a substantial amount of money higher than your credit card limit.
  • When you are planning a large purchase that you want to pay over a period of time
  • When you need to pay a business or person who does not accept credit cards.

Do remember that you can always use your credit card for needs over and above your personal loan amount.

No matter what your need HDFC Bank has a solution for you – be it a personal loan or a credit card. So apply for a personal loan or credit card now! 

* Terms & conditions apply. Loan disbursal at sole discretion of HDFC Bank Ltd.


Sr. No. Loan on Credit Card Disbursals are Basis Below Conditions


1 If you have an existing  HDFC credit card, you can directly avail loan on your credit card. Apply now

2

If you don't have HDFC Bank Credit Card, you must first apply for a new credit card with us. Post which, you can check the eligibility and apply for Loan on credit card

Apply for Credit Card