Personal Loan vs Credit Card: Which Is Cheaper in 2026?
Why This Comparison Matters
Most people reach for their credit card when they need quick cash. But at 36–42% annual interest, credit card cash advances are among the most expensive forms of credit in India.
A personal loan from a bank or NBFC at 10.5–14% can cost less than half if you qualify.
The Numbers
For a ₹5 lakh shortfall over 12 months, a credit card cash advance costs roughly ₹1,07,000 in interest. A personal loan at 10.85% costs around ₹28,600. That's a saving of over ₹77,000 on the same amount.
When Credit Card Works Better
When Personal Loan Wins
The Bottom Line
For anything above ₹1 lakh and beyond 30 days, a personal loan is almost always cheaper. Contact us. We'll tell you the exact rate you qualify for in 2 minutes.
Disclaimer: The information in this article is for general informational purposes only and does not constitute financial, legal, or investment advice. Interest rates, loan terms, and eligibility criteria are set by individual lenders and subject to change without notice. Please verify current rates directly with the lender or consult a qualified financial advisor before making any borrowing decision. Loans Got Easy is a DSA partner platform — we do not lend money directly.
Ready to apply? Get the best rate for your profile, free.
Check My Eligibility →