Personal loans are better for large, one-time expenses. They offer lower interest rates (10-18% p.a.) compared to credit cards (24-40% p.a.) and fixed EMI schedules make budgeting easier.
Credit cards offer flexibility for smaller recurring expenses. The 45-day interest-free period is a major advantage if you pay on time.
| Factor | Personal Loan | Credit Card |
|---|---|---|
| Interest Rate | 10-18% p.a. | 24-40% p.a. |
| Tenure | Up to 5 years | Revolving |
| Best For | Large amounts | Small expenses |