When sudden financial expenses arise, consumers often debate between converting credit card transactions into EMIs or applying for an unsecured personal loan.

Interest Rate Benchmark

• Personal Loans: Prime bank rates typically range between 10.5% to 15% per annum on reducing balance.
• Credit Card EMIs: Post-purchase card EMI conversions carry interest rates between 14% to 24% per annum, plus 18% GST on interest charges.

When to Choose a Personal Loan

For expenses exceeding ₹1 Lakh or repayment tenures beyond 12 months, a personal loan is consistently cheaper than credit card revolving credit.