Credit Card EMI vs Personal Loan: Which Costs Less For Festive Shopping?
This article compares the financial implications of using credit card EMIs versus personal loans for festive shopping. It highlights that while credit card EMIs offer convenience, hidden costs like GST on interest and processing fees can make them more expensive than traditional personal loans.
Why it matters
Understanding the true cost of debt is essential for consumers managing personal finances during high-spending festive seasons.
The festive sale is here. The discount looks tempting, the product is on your wishlist, and then comes the big question: Should you put it on a credit card EMI or take a personal loan?The answer is not as simple as choosing the option with the smaller monthly EMI. What matters is the total amount you will pay by the time the debt is cleared."Borrowers should not choose credit based on the size of the EMI alone. The decision should account for the total cost, repayment tenure, existing obligations and the purpose of the borrowing," Laksh Dua, Director & Co-Founder, WeCredit, told NDTV.Credit Card EMI Or Personal Loan?For a smaller purchase that can be repaid over a short period, a credit card EMI can be convenient.
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