Personal Loan Vs Credit Card – Which Is Better? [Blog 193]

Many people are in dilemma about their suitable lending source? Is personal loan o credit card is good option for the lending. Both meet different necessities; individual just essential to find out the best possible option for their situation. As both are an unsecured loan, they do not need any collateral. Even the loan processing fee and interest rate are more or less analogous in both the sources. Let’s have a glance on the dissimilarities between personal loans and credit cards’ loan and figure out what is appropriate for individual –

 To avail loan on a credit card, individual need to have the bank’s credit card. Whereas, in the case of a personal loan they can approach the bank directly and put forth their plea for a loan.
 The next difference is in the borrowing limit. In the case of credit card, individual can borrow even small amount like Rs 3,000 & Rs 5,000. The repayment amount for the loan can be converted into EMIs. However, in the case of personal loans, individual can’t borrow less than Rs 40,000-50,000 at least.
 The key difference between personal loan interest rate and credit card loan interest rate is notable. The loan on a credit card generally comes with 16-20% interest rate. Whereas, 10-15% interest rate is applicable on a personal loan. People ordinarily get confused between ‘the interest rate on cash withdrawal’ and ‘loan on the credit card’. Cash withdrawal comes with even more high-interest rate i.e. 24%.
 In case of personal loans, the interest rate is negotiable. Whereas individual have planned to tie up themselves with credit card loan, their interest will be fixed.
 In the case of personal loans, few documents are mandatory such as bank statements, address proof and salary slips to establish their eligibility for the loan. Whereas, there is no necessity to submit any document for a loan on their credit card.
 If individual want to avail loan for a short tenure say for just 6 months, then go for credit card loans. Why bear the load of interest rate for a long time if they can pay their debts fast. Still, individual need to do a little homework in this regard as the prepayment in credit card means penalty. Personal loans are obtainable for a minimum 1-2 year period.
 Whenever individual have extra funds… they want to prepay their outstanding dues. Right. In the case of personal loans, they can prepay the same and get relief. However, a loan on credit card ordinarily comes with 3% prepayment penalty.
 Though personal loans are cost efficient but individual enjoy an excess of travel benefits & rewards, discounts & insurance coverage on a loan at credit card.
 For applications & electronic items, it’s better to make usage of their credit cards because the purchase comes with prolonged warranty and after sales services.

Case Study
Suyash wants to study engineering abroad. He wants a loan of at least Rs. 12 lakh. Though he has a credit card but due to the low limit of the card, he decided to avail the personal loan.
As we all know that taking out a credit card loan for short-term debt. On the other hand, a personal loan is more suitable for those individuals who need a longer repayment tenure to pay back the debt. But in the business every situation is different, here’s the common rule of thumb when choosing between the two options: Personal loans are usually better for larger expenses that take longer to pay off. Credit cards are usually better for smaller expenses that can be paid off relatively quickly. but when someone wanted to start their own business off course this all things help them for sure but before that they need to provide a proper project report to get bank loan according to your requirement so that you can do your business in any kind of area. But before that you have to give the knowledge about how to make an project report even they have to know what kind of sector they are going to their business so that they can get bank loan on Project Report for Industries, Project Report in entrepreneurship, Company Project Report, etc. even they can get detailed project report for bank format but first of all they need to know what is project report, What is CMA Data etc. so they can get their reports. Once they decide what type of report they need for their start-up like Project Report for Industries, Project Report in entrepreneurship, Company Project Report, etc. they can do further process. Or they can get different types of loan like Mudra Loan Project Report on their any type of Bankable Project Report or bankable DPR so with the help of online portal of loanDPR.com they can do all this work in very less time.
—

LoanDPR.com is an online platform for generating Project Reports to get bank loans and even project reports for subsidy. Whether you are a New Start-up Company or an Established Company, user can create Project Report required for bank loan and also required CMA reports. It’s User Friendly and Do it by Yourself Platform, created for End Users, Entrepreneurs, Business Owners, Chartered Accountants, Tax Consultants, Finance Professionals, Bank Employees etc. You can generate Business Project Report for Bank Loan and also prepaid Project Report in just 10 minutes by using user interface provided by LoanDPR.com
For any assistance or more information feel free to contact us at contact@LoanDPR.com or at WhatsApp no. +91-8459973683 or +91-8459941735