Credit card EMI vs personal loan — which is cheaper?
Rituparna Koul
Asked 23 May 2026
I need to finance a purchase of ₹50,000. Should I convert the transaction to credit card EMI or take a personal loan? Which is actually cheaper after all charges?
3 Answers
Short answer: no, EMI on credit card is not cheaper than a personal loan for large amounts (>₹50,000). The processing fee (~₹199-₹599) plus the interest (~14-16% reducing) usually adds up to slightly more than a personal loan rate of 11-13%. But for small-ticket EMI (₹10-20K), it is fine.
Two things nobody tells you: (1) GST is charged on the annual fee, so a ₹1,000 fee becomes ₹1,180. (2) Reward points usually have an expiry of 2-3 years. Set a calendar reminder to redeem before they lapse.
Two things nobody tells you: (1) GST is charged on the annual fee, so a ₹1,000 fee becomes ₹1,180. (2) Reward points usually have an expiry of 2-3 years. Set a calendar reminder to redeem before they lapse.
Your Answer
Sign in to post your answer and help the community.
Sign in to postWhy sign in? We moderate Q&A to keep it spam-free.