Personal Loan vs Credit Card Loan: Which Has Lower EMI? (Complete Guide with EMI Calculator Tips)

Personal Loan vs Credit Card Loan: Which Has Lower EMI?

When you need quick money, two of the most common borrowing options are Personal Loans and Credit Card Loans. Both provide instant funds, flexible repayment, and easy approval—but the biggest question users ask is:

Which loan gives the lower EMI?

In this detailed guide, we will compare both loan types based on EMI, interest rates, processing fees, repayment flexibility, and real-life examples.
We will also show how to calculate your EMI easily using an Online EMI Calculator so you make the best borrowing decision.

What Is an EMI and Why Does It Matter?

EMI (Equated Monthly Instalment) is the fixed amount you pay every month toward your loan.
Your EMI depends on:

• Loan Amount

• Interest Rate

• Loan Tenure

• Processing Fees

Lower EMI = Less monthly financial burden.
Higher EMI = Faster loan completion but more pressure on monthly budget.

This is why choosing the right loan—personal loan or credit card loan—is very important.

What Is a Personal Loan?

A personal loan is an unsecured loan offered by banks and NBFCs for any personal expense such as:

• Medical emergency

• Education

• Travel

• Home repair

• Marriage

• Business use

Features of Personal Loan

✔ Fixed EMI
✔ Tenure from 1 to 6 years
✔ Lower interest rate than credit card loan
✔ EMI Calculator available online
✔ High loan amounts possible

What Is a Credit Card Loan?

A credit card loan is a loan offered on your existing credit card limit. It includes:

• Loan on Credit Card

• EMI on Credit Card Purchase

• Cash Withdrawal EMI

Features of Credit Card Loan

✔ Instant approval
✔ No documentation
✔ Short tenure (3–24 months)
✔ Higher interest than personal loan
✔ Quick for small emergency needs

Personal Loan vs Credit Card Loan: Which Has Lower EMI?

To understand EMI clearly, let’s compare the interest rates and tenures:

✔ Winner for Lower EMI: Personal Loan

Because the interest rate is lower and the tenure is longer, personal loan EMI is always lower.

Example: EMI Comparison

Let’s assume:

• Loan Amount: ₹1,00,000

1) Personal Loan EMI (12% interest, 3 years)

EMI = ₹3,321/month

2) Credit Card Loan EMI (24% interest, 1 year)

EMI = ₹9,403/month

Credit card EMI is nearly 3X higher!

Why Personal Loan Has Lower EMI?

1. Low interest rate – banks charge less

2. Long repayment period – 3 to 5 years

3. Better loan management

4. Fixed EMI structure

When Should You Choose a Personal Loan?

✔ Large loan amount
✔ Low EMI needed
✔ Long-term repayment
✔ Financial planning and stability
✔ Lower interest cost

When Should You Choose a Credit Card Loan?

✔ You need money urgently—within minutes
✔ Small amount required
✔ Short-term repayment
✔ No documents available
✔ You don’t want to apply for a new loan

How to Calculate EMI for Personal Loan or Credit Card Loan?

The easiest way is by using an Online EMI Calculator.

Steps to Calculate EMI:

1. Enter Loan Amount

2. Enter Interest Rate

3. Select Tenure

4. Click Calculate EMI

You will instantly get:

• EMI per month

• Total interest payable

• Total amount to be paid

This helps you compare personal loan EMI vs credit card EMI clearly.

Why Should You Use an EMI Calculator?

Using an EMI Calculator gives you:

✔ Accurate EMI calculation
✔ Comparison between loan options
✔ Proper budgeting every month
✔ Helps reduce financial stress
✔ Shows how interest changes with tenure

If your website is EMI Calculator VIP, this content will perfectly attract users searching for EMI details!

Conclusion: Which Is Better?

If your main goal is lower EMI, then:

Personal Loan is the Best Option
Because it offers:
✔ Lower interest
✔ Longer tenure
✔ Lower EMI
✔ Better financial comfort

Credit card loan is only good for:
✔ Emergency
✔ Small amount
✔ Instant need

Want Lower EMI? Use EMI Calculator Before Taking Any Loan

An EMI Calculator helps you understand the monthly burden before you borrow.
It gives clarity, saves money, and helps you select the best loan.