Should you swipe your card and convert to EMI or take a personal loan? In 2025, interest rates for loans are lower, but card EMIs are more convenient. Here’s a clear cost comparison to help Indian borrowers decide the cheaper and smarter option.
India Snapshot
- Personal Loan Rates (2025): 10% – 18% (SBI, HDFC, ICICI, Axis).
- Credit Card EMI Rates (2025): 13% – 24% (ICICI, HDFC, SBI Cards).
- Tenure: Loans up to 5 years; EMIs usually 3–24 months.
- Processing Fee: 1–3% (loan), ~1–2% (card).
- GST: Charged on processing fees & interest.
- Payments: UPI, auto-debit, NetBanking.
Compare personal loans & EMI offers online:
Check Personal Loans on Paisabazaar
Explore EMI & Loan Options on BankBazaar
Personal Loans – When They Work Best
- Interest: 10–18% p.a. depending on credit score.
- Amount: ₹50,000 – ₹25 lakh.
- Tenure: 1–5 years.
- EMI fixed for entire tenure.
- Good for: medical emergencies, education, debt consolidation, weddings.
Example: ₹2 lakh loan at 12% for 3 years → EMI ~₹6,640.
Credit Card EMIs – When They Work Best
- Interest: 13–24% p.a. (some no-cost EMI deals).
- Amount: Based on credit limit (₹10,000 – ₹5 lakh).
- Tenure: 3–24 months.
- Easy conversion at checkout or post-purchase.
- Good for: electronics, online shopping, short-term spends.
Example: ₹50,000 phone purchase at 18% for 12 months → EMI ~₹4,590.
Cost Comparison
| Feature | Personal Loan | Credit Card EMI |
|---|---|---|
| Interest Rate | 10–18% | 13–24% |
| Tenure | 1–5 years | 3–24 months |
| Processing Fee | 1–3% | 1–2% |
| Loan Amount | ₹50,000 – ₹25 lakh | Up to card limit (~₹5 lakh) |
| Best For | Big, long-term expenses | Small, short-term purchases |
| Insurance | Sometimes bundled (optional) | Not applicable |
Pros and Cons
Personal Loan Pros
Lower interest for long tenure.
Higher loan amount.
EMI stability.
Processing time (1–3 days).
Credit Card EMI Pros
Instant approval at checkout.
Best for gadgets/shopping.
No-cost EMI on some products.
Higher interest.
Limited tenure.
Smart Strategy for 2025
- Use Credit Card EMI for purchases <₹1 lakh, repay in ≤12 months.
- Use Personal Loan for anything >₹1 lakh or tenure >1 year.
- Always check APR (Annual Percentage Rate) including fees.
- Compare offers on Paisabazaar/BankBazaar before applying.
Compare costs & pick the smarter option today:
See Loan & EMI Options on Paisabazaar
Check Personal Loan Offers on BankBazaar
In 2025, both personal loans and credit card EMIs have their place. If you’re financing a short-term gadget purchase, credit card EMIs are quick and easy. But if you need larger funds over years, personal loans are far cheaper and safer. Always calculate the total cost before deciding.
